The Penang Development Corporation (PDC) has formalised a partnership with Fajarbaru Builder Group Bhd (FBG) to develop a medical city in Batu Kawan.
Chief Minister Chow Kon Yeow said that the Penang Medi-City will transform healthcare as well as serve as a key hub for medical tourism and sustainable modern living. Referring to the collaboration, Chow said that FBG has the financial backing, is an established infrastructure provider and is working with several key partners.
Meanwhile, PDC would facilitate land acquisition and government approvals, including freehold status approval from the state authorities.
“We have been working for over five years with various parties, conducting ‘Requests for Proposals (RFPs)’, and navigating many processes. It’s not easy to get to this point, but we are confident this collaboration offers a winning formula,” Chow said during a press conference after the signing ceremony held at the E&O hotel on Jan 20.
"Penang now dominates the medical tourism sector in Malaysia, contributing 45 per cent of the country's medical tourism revenue," he said.
Chow added that with this new development, Penang has successfully strengthened its position as a leading medical tourism destination in Southeast Asia and globally.
“We aim to create an ecosystem that embodies modern healthcare and holistic living,” he said.
FGB group executive chairman Tan Sri Dato’ Sri Chan Kong Choy said that this development will integrate a wide range of healthcare solutions from preventive care and diagnostic care to post-treatment, rehabilitation, and wellness.
“The Penang Medi-City, Batu Kawan development project stands as a testament to the ambition which we share with PDC to solidify Penang into a world-class regional medical hub delivering a complete ecosystem of healthcare and medical related facilities,” he said.
For the first phase of the project, which covers 51.17 acres, FBG has committed to allocating at least 30% of the land area for medical and healthcare components.
“These will include a 200-bed specialist hospital, a healthcare complex, a wellness centre, and related infrastructure. The remaining 70% of the land will be earmarked for mixed development and infrastructure.”
Elaborating further, Chan said that the medical facilities include all kinds of specialisations such as heart, oncology, women and children, and associated medical services like wellness, medical school, nursing school, and pharmaceutical, including traditional Chinese medicine (TCM). Besides the medical hub, there will be residential, retail, and commercial elements to form a sustainable urban enclave.
The master purchase and development agreement (PDA) facilitates the development of the 235.8-acre Medi-City project in Batu Kawan, Penang.
Under the agreement, FBG will acquire Parcel 1 of the project for RM111.5 million. The acquisition will be funded through a mix of bank borrowings and internally generated funds. Parcel 1 is projected to have a gross development value (GDV) of approximately RM2 billion over eight years. A profit-sharing model has also been established for the development, where PDC will receive a minimum profit of RM36.8 million, to be paid over the same period.
Apart from the Master PDA, FBG also entered into strategic collaboration agreements with PDC and several key partners to advance the Medi-City project.
These include a partnership with PDC and Pelaburan Hartanah Berhad (PHB) to explore the development of an international school, wellness centre, hospital, and other mutually agreed facilities. Another collaboration with PDC and KJTS Group Berhad focuses on developing a district cooling system to supply chilled water to the hospital and commercial components.
Solarvest will contribute by providing renewable energy solutions, including solar panel systems and e-mobility infrastructure; and FBG will collaborate with Cellaax to construct the necessary infrastructure for the region’s first regenerative medicine medical centre, which will specialise in clinical research and cellular therapy development.
The Penang Medi-City development is expected to generate social and economic benefits, such as employment opportunities.
“The arrival of visitors to Penang Medi-City, Batu Kawan will significantly impact the local economy, especially by stimulating the business ecosystem and creating new opportunities.
“This project will not only benefit the healthcare sector but also open doors for small and medium enterprises (SMEs) to grow and provide an essential platform for skill development and career advancement,” said Chow.
Penang Governor Tun Dato’ Seri Utama Ahmad Fuzi Abdul Razak was present to witness the signing ceremony. Also present were PDC chief Dato' Aziz Bakar, youth and sports exco Daniel Gooi Zi Sen and Bukit Tambun state assemblyman Goh Choon Aik.
Separately, state tourism and creative economy committee councillor Wong Hon Wai said that medical tourism refers to people who travel abroad for medical treatments, medical check-ups and medical wellness programmes.
"With the visa exemptions for tourists from India and China, I believe more people will choose Penang as a destination, not only for our excellence in medical facilities but for our tourism offerings as well," he said.
Wong added that the Malaysia Healthcare Travel Council (MHTC) is also expanding its collaborations with the Middle East to attract more medical tourists.
*Figures in this article are provided by the Penang Development Corporation's fact sheet.
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