The Kuala Lumpur International Dental Centre (KLIDC) mixed development project in George Town will proceed as planned, following a review of the project’s status and implementation plans by the Penang state government.

Chief Minister Chow Kon Yeow said the confirmation came after a special meeting held on July 8, following the state’s request for an update on the long-delayed development at Lot 10011, Jalan Zainal Abidin/Lorong Selamat.

According to Chow, the developer confirmed that all approvals issued by Penang Island City Council (MBPP), including the Building Plan approval and Commencement of Work (COW), remain valid. The approvals are based on the planning permission granted on March 19, 2019 for a 21-storey mixed-use development comprising a specialist hospital, hotel, mechanical parking system and supporting facilities.

Construction initially commenced after approvals were obtained in January 2020. Early works, including site clearing, hoarding installation, test piling, bored piling and earthworks, were completed by October 2020 despite the challenges posed by the COVID-19 pandemic.

However, the project was subsequently delayed due to supply chain disruptions, labour shortages, escalating construction costs and financing constraints.

The development was revived in 2024 following a change in shareholders and management, with the new team deciding to proceed without making any changes to the original approved design or layout.

Project architect Ar. Nora Che Idris said MBPP has confirmed that the existing approvals remain valid, allowing construction to continue without requiring fresh planning submissions. Weekly coordination meetings are currently being held between the developer and consultants to finalise technical and design matters.

The tender for the first building opened on May 12 and closed on June 27, attracting bids from five pre-qualified contractors. The main contractor is expected to be appointed in early August, with construction scheduled to begin by mid-August 2026.

The project is expected to take 36 months to complete, with the Certificate of Completion and Compliance (CCC) targeted for August 2029. Both the hospital and hotel are expected to commence operations in the fourth quarter of 2029.

Built on a 1.003-acre site, the development will feature Victoria Specialist Hospital, offering at least seven specialist departments and 20 specialist clinics, alongside a 264-room hotel to accommodate patients, their families and medical tourists, further strengthening Penang’s position as a regional medical tourism destination.