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Penang is set have a new low-cost terminal to handle increasing passenger traffic.

Finance Minister Lim Guan Eng said talks would be held with Malaysia Airports Berhad and AirAsia on the proposed new terminal.

“The Government’s fiscal position will not allow us to undertake the project which would run into hundreds of millions of ringgit,” Lim told reporters outside the state assembly here on Monday.

Lim said the specifics will have to be worked out as Penang is expected to record passenger traffic of more than 7.8 million this year.

Source: TheStar.com.my