Malaysia Government has accepted AirAsia’s proposal to build a brand new budget airport. The new LCCT will be located at Labu, Negeri Sembilan. The new terminal, to be called “KLIA East @ Labu”, will be built on a 2,800 hectare site (6,919 acres) in the central state of Negri Sembilan under a private finance initiative, costing 1.6 billion ringgit. The terminal project development will be handled by Sime Darby and expected to be completed in two years.

Updates: KLIA East project has been called off. More details.