Eastern & Oriental Bhd (E&O) has teamed up with Cengild Medical Bhd and Skyspring Sdn Bhd to develop a multi-disciplinary tertiary private hospital within the Gurney Green district of Andaman Island, Penang.

The proposed facility, with an estimated development cost of RM350 million, will be built in two phases and is expected to accommodate about 240 beds upon completion. The project is targeted for completion by the fourth quarter of 2029.

E&O said its wholly-owned subsidiary, KCB Holdings Sdn Bhd, has entered into a conditional joint venture agreement with Cengild Medical and Skyspring for the development. Under the arrangement, KCB Holdings will hold a 30% stake in the joint venture company, while Skyspring and Cengild Medical will own 45% and 25% respectively.

The joint venture company will establish a wholly-owned operating entity to oversee the development, establishment and operation of the hospital.

Cengild Medical, known for its expertise in digestive system and abdominal health, will contribute clinical, operational and strategic management support to the project and future hospital operations.

E&O managing director Kok Tuck Cheong described the collaboration as another significant milestone in the transformation of Andaman Island into a vibrant waterfront township.

He said healthcare is an essential component of a sustainable community, adding that the proposed hospital will enhance the overall ecosystem of Andaman Island and strengthen its long-term appeal as a destination for families, professionals and retirees seeking a high quality of life.

About Maldives Residences

A residential development by Ideal Property Group at Bayan Lepas. Strategically located along Lorong Sungai Tiram 6, just across the road from Havana Beach Residences. It is conveniently connected to Jalan Tun Dr Awang, less than 2km away from Penang International Airport. This development comprises 46-storey building with 4 residential towers. It features a mix of affordable and upgraded units, with a built-up size of 850sq.ft. onwards.

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KLIDC land parcel at Taman Manggis (Image Source: Kwong Wah Yit Poh)

Any attempt to revive the long-delayed Kuala Lumpur International Dental Centre (KLIDC) development in George Town will require fresh applications and approvals, as all previous planning permissions have expired, Penang Chief Minister Chow Kon Yeow said.

In a statement issued today, Chow clarified that Lot 10011, Section 16, Bandar George Town, located at Jalan Zainal Abidin/Lorong Selamat, remains registered under Kuala Lumpur International Dental Centre Sdn. Bhd. (KLIDC) on a 99-year leasehold tenure expiring on April 22, 2114.

The 4,061 sq m site is designated for “building” use, with express conditions requiring 66% of the development to be used for hospital purposes and the remaining 34% for service suites and hotel components that are not intended for sale to the public. Any transfer, charge or other transactions involving the land are subject to the approval of the state authority.

According to Chow, Penang Island City Council (MBPP) had approved KLIDC’s planning permission twice, on Nov 18, 2014 and Mar 19, 2019. The latest approval involved the construction of a 21-storey mixed-use building comprising hospital facilities, a hotel, mechanical parking systems and supporting amenities.

However, checks by MBPP found that no construction or development activities have been carried out on the site to date. The council also confirmed that it has not received any new applications, amended plans or subsequent development submissions from KLIDC following the approval granted in 2019.

“As the previous planning approval has lapsed, any action to proceed with the project is subject to new applications and approvals to be submitted by the developer to MBPP,” Chow said.

Meanwhile, the state government, through the State Economic Planning Division (BPEN), has formally requested KLIDC to provide an update on the current status and future direction of the project. A letter seeking clarification was issued to the company on June 16, 2026.

The KLIDC site had previously attracted widespread public attention following earlier proposals for a mixed development that sparked legal disputes and planning controversies. The latest statement by the state government indicates that no valid planning permission currently exists and that any future development will need to undergo a fresh approval process.

KLIDC SITE:

About STARK Tower

34-storey freehold mixed-use development within The Light Waterfront Penang in Gelugor, comprising 624 suites and 24 commercial units. Developed by Stark Development Sdn Bhd on a 2.3-acre site adjacent to the Lin Xiang Xiong Art Gallery, the project offers suite sizes ranging from 425 sq ft to 640 sq ft and incorporates smart technologies and sustainable design elements aimed at modern waterfront living.

The development features a wide range of lifestyle and hospitality-oriented facilities, including the Stark Lounge concierge service, Stark X-Perience Club, waterfront retail outlets and the “Stark in the Sky” rooftop destination with dining and leisure amenities. Located near the upcoming Penang Waterfront Convention Centre and future Penang LRT station, STARK Tower is positioned as a landmark addition to The Light Waterfront precinct, offering residents and visitors seamless access to lifestyle, business and transportation hubs.

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The efforts to ease congestion along the North-South Expressway are progressing with the implementation of the Juru–Sungai Dua Toll Plaza Traffic Dispersal Project (PTJSD), a strategic initiative aimed at improving traffic flow in one of Penang’s busiest corridors.

Physical works for Package 1 began in October last year and are currently being carried out on site. The project marks a significant phase in the long-term plan to address worsening congestion, particularly at busy interchanges and stretches of the expressway where increasing traffic volumes have created more complex challenges.

During an unofficial site visit, Penang Chief Minister Chow Kon Yeow said the project should be expedited to ensure its primary objective of separating highway traffic from local road users can be achieved more effectively. He noted that rising vehicle numbers and bottlenecks at several crossing points have made more comprehensive infrastructure solutions increasingly necessary.

According to Chow, the separation of traffic flows is expected to directly improve vehicle movement along the North-South Expressway and reduce congestion, especially during peak hours. The PTJSD project forms part of broader traffic dispersal measures for the northern section of the expressway and is expected to have a significant impact on easing traffic conditions in the area.