Penang Is Set To Have A New Low-Cost Terminal In One To Two Years

Finance Minister Lim Guan Eng said the government is currently in talks with AirAsia to kickstart the project.

The government is mulling over a new low-cost carrier terminal (LCCT) in Penang

Image via klia2

Finance Minister and Air Putih assemblyman Lim Guan Eng said Putrajaya is currently discussing with AirAsia to expand the Penang International Airport and build a new LCCT.

Due to financial constraints, Guan Eng said the government and Malaysia Airport Holdings are seeking assistance from the private sector

Image via theSun

"This forces us to look for new methods such as collaboration with the private sector, AirAsia, to implement the expansion project that will include the construction of a new LCCT.

"When we talk about expanding the airport, it will cost hundreds of millions so we have to look at a formula in which the federal government don’t pay for it," he said at the state legislative assembly earlier today, 6 August. 

The discussions have been "positive", he added before suggesting that the same practice will be used for the Penang Port and other projects.

The new LCCT will be utilised to accommodate increasing passenger traffic, which will reportedly be more than 7.8 million by this year-end

Image via Convergence

"The present expansion of Penang International Airport will not be able to handle future capacity and a new terminal is needed," he said as reported by The Star Online.

It was revealed by Malay Mail that the Penang International Airport recorded 7.1 million passengers last year, exceeding its allocated 6.5 million passenger capacity.

The expansion is expected to be finished in more than two years but the terminal might be completed earlier, Free Malaysia Today (FMT) revealed. 

Often regarded as one of the busiest airports in the country, the Penang International Airport sits near Bayan Lepas

Image via Aviation.my

It underwent a massive RM250 million upgrade starting in 2010. However, renovation works were marred with controversy due to problems like flooding and collapse of parts of its ceiling. 

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