Eastern & Oriental Berhad announced that its wholly-owned subsidiary, KCB Holdings Sdn Bhd , has entered into a conditional joint venture agreement with Cengild Medical Berhad and Skyspring Sdn Bhd to develop a multidisciplinary tertiary private hospital within the Gurney Green district at Andaman Island, Penang.
Under the JV Agreement, KCB will hold a 30% equity stake in the joint venture company (“Hold Co”), while Cengild Medical and Skyspring will hold 25% and 45% respectively. The Hold Co shall subsequently incorporate a wholly-owned operating company to undertake the development, establishment and operation of the hospital. Leveraging its established expertise in the healthcare sector specialising in digestive system and abdominal health, Cengild Medical to provide clinical, operational and strategic management expertise to support the hospital’s development and future operations.
The estimated total development cost for the proposed hospital is RM350 million and to be developed in two phases with an expected capacity of 240 beds.
E&O Managing Director Kok Tuck Cheong said, “ We are pleased to partner with Cengild Medical and Skyspring to develop this healthcare facility at Andaman Island. By combining E&O’s placemaking expertise with Cengild Medical’s established clinical and operational capabilities, we look forward to delivering a modern healthcare destination that will serve the Andaman residents, the wider Penang community and visitors seeking quality healthcare, while supporting the state’s growing medical tourism sector.”
The proposed hospital is targeted for completion by the fourth quarter of 2029, subject to the fulfilment of conditions precedent under the JV Agreement and the timely receipt of all necessary regulatory approvals, permits and licences.
