The long-delayed hospital and hotel development on Taman Manggis land in George Town is finally moving again. Penang Chief Minister Chow Kon Yeow announced that construction of the Victoria Specialist Hospital will begin in mid-August, with full completion targeted for AUGUST 2029.
The 21-storey mixed-use building on a 1.003-acre site along Jalan Zainal Abidin will house a 151-bed specialist hospital across 13 floors, with an eight-storey, 264-room hotel occupying the upper levels. The hospital is expected to offer at least seven specialist departments and 20 specialist clinics, creating 800 jobs once operational.
According to Free Malaysia Today, Nora Che Idris of architectural firm Arqitectnia Sdn Bhd said the developer, Kuala Lumpur International Dental Centre Sdn Bhd (KLIDC), resumed the project in 2024 under new management. The project proceeded without changes to the original design or approvals granted by the Penang Island City Council (MBPP).
KLIDC obtained planning permission and approval to commence work from MBPP in 2020. Piling works were completed by OCTOBER that year. But construction stalled for years due to supply chain disruptions, labour shortages, rising construction costs, and financing constraints. The project sat idle while political opponents questioned the delay.
As stated by Malay Mail, the state government issued an official letter to KLIDC on 16 JUNE seeking an update on the project after the land remained unused for years. Chow chaired a special meeting with the project consultants on 8 JULY to review the project status and implementation plans.
The question of whether the original approvals remained valid was itself a point of contention. In JUNE 2026, Chow said the previous planning approval had “expired” and that any revival would be “subject to a fresh application and approval process” by MBPP. But by JULY, the developer confirmed the approvals remained valid, and the project proceeded without fresh submissions. Chow’s office clarified that the approvals, including the Building Plan and Commencement of Work, had never been formally revoked.
Penang Gerakan chairman Oh Tong Keong had also raised concerns about the undeveloped site. He pointed out that the prime parcel of land was originally designated for public and affordable housing projects before being leased to KLIDC on a 99-year lease expiring 22 APRIL 2114.
The tender for the main building opened on 12 MAY and closed on 27 JUNE, attracting bids from five pre-qualified contractors. Technical and commercial evaluations are under way, with the main contractor expected to be appointed by early August.
Based on the project timetable shared by Penang Property Talk, construction is expected to take 36 months from commencement until the issuance of the Certificate of Completion and Compliance. Both the hospital and hotel are expected to begin operations in the fourth quarter of 2029.
Nora expressed hope that Victoria Specialist Hospital would contribute to the growth of Penang’s private healthcare and medical tourism sectors, further strengthening the state’s position as a regional medical tourism destination.
The land is categorised for building use, with conditions requiring 66 per cent of the development for hospital purposes and 34 per cent for the hotel. Under the terms of the lease, the hotel is not intended for sale to the public.
