Kuala Lumpur, 19 June 2026 – Premier lifestyle property developer Eastern & Oriental Berhad (“E&O” or the “Group”) today announced that its wholly-owned subsidiary, KCB Holdings Sdn Bhd (“KCB”), has entered into a conditional joint venture agreement (“JV Agreement”) with Cengild Medical Berhad (“Cengild Medical”) and Skyspring Sdn Bhd (“Skyspring”) 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 specializing in digestive system and abdominal health, Cengild Medical will 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. The hospital will be developed in two phases and is expected to have an estimated capacity of 240 beds.
E&O Managing Director Kok Tuck Cheong said, “This partnership marks another important milestone in the evolution of Andaman Island. As we bring our masterplan to life, we remain focused on creating a well- balanced waterfront township that integrates quality homes with the essential amenities and services needed to support a thriving community.
Healthcare is a key component of any sustainable township. The proposed hospital not only elevates the overall ecosystem of Andaman Island but also strengthens its long-term appeal as a place where families, professionals and retirees can enjoy a high quality of life. We believe the availability of quality healthcare within close proximity will further enhance the township’s value proposition and support future residential demand.
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.