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KUALA LUMPUR, AUGUST 2026 –FBG Holdings Bhd is seeking to cease its collaboration with the Penang Development Corporation for the proposed Medi-City joint development project in Batu Kawan, Penang, marking a significant development for the planned healthcare-focused township.
In a filing dated Aug 21, FBG said its wholly owned subsidiary FBG Land Sdn Bhd had written to PDC regarding the Master Purchase and Development Agreement entered into by FBG, FBG Land and PDC. The subsidiary informed PDC of its intention to stop proceeding with the collaboration.
FBG said it is proposing that the parties discuss an orderly conclusion of the existing collaboration under the agreement.
Discussions between FBG Land and PDC remain ongoing, and the company said it would issue further announcements when there are material developments or once the parties reach agreement on the terms and conditions governing the cessation.
At this stage, FBG has not publicly disclosed the reason behind its decision to seek an end to the collaboration. The termination also has not yet been presented as a completed agreement, as the relevant terms are still being discussed.
FBG and FBG Land entered into the development agreement with PDC on Jan 20, 2025 for the proposed Medi-City project.
The arrangement involved the proposed acquisition by FBG Land of an approximately 51.172-acre parcel in Bandar Cassia, Batu Kawan, as part of the joint development.
The first phase of the project had been projected to carry a gross development value of RM2 billion, underscoring the scale of the proposed investment.
Under the original development plan, about 30 per cent of the first phase was expected to consist of medical and healthcare-related facilities.
These included a 200-bed specialist hospital, a wellness centre and a healthcare complex. The development was intended to create a broader medical and wellness ecosystem in Batu Kawan.
FBG’s 2025 annual report had described Penang Medi-City as a technology-oriented medical and wellness hub integrating healthcare, residential and commercial components with sustainable infrastructure.
Beyond healthcare facilities, the first phase was also planned to feature FBG Global Park, envisioned as a commercial area within the development.
An international school was also included in the proposal, alongside residential components comprising serviced apartments and villas.
The wider Medi-City concept had been positioned around medical tourism, wellness, smart infrastructure and sustainability, with FBG previously indicating plans to attract healthcare operators, biotechnology companies, start-ups and educational institutions.
FBG’s decision to seek an end to its participation raises questions over the next phase of the Medi-City development, although neither FBG nor PDC has announced what will happen to the project once discussions conclude.
The Bursa Malaysia filing focuses specifically on ending the existing collaboration under the Master Purchase and Development Agreement and does not state that the broader Medi-City concept itself has been cancelled.
