FBG Holdings Bhd is seeking to end its collaboration with Penang Development Corporation (PDC) on the proposed MediCity joint development project in Batu Kawan, Penang.
In a filing with Bursa Malaysia today, FBG said its wholly owned subsidiary, FBG Land Sdn Bhd (FBL), had written to PDC on Aug 21, 2026, regarding the Master Purchase and Development Agreement (PDA) previously entered into by FBG, FBL and PDC for the project.
“FBG is proposing that the parties discuss an orderly conclusion of the existing collaboration under the PDA,” the company said in the filing.
The construction and property development group said discussions between FBL and PDC on the proposed cessation are currently ongoing, adding that further announcements would be made upon any material development, or once the parties reach an agreement on the terms and conditions surrounding the termination of the collaboration.
FBG and FBL had originally entered into the PDA with PDC on Jan 20, 2025, laying the groundwork for what was envisioned as a significant healthcare and mixed-use development in the region.
Under the agreement, FBG had anticipated that the first phase of the Penang Medi-City project would carry a gross development value (GDV) of RM2 billion, positioning it as a major project within the group’s development pipeline.
About 30% of the phase one development was planned to comprise medical components, including a 200-bed specialist hospital, a wellness centre, and a healthcare complex, reflecting the project’s original ambition to establish a comprehensive medical hub within Penang.
Phase one was also expected to include the construction of FBG Global Park, which was intended to serve as a commercial area, alongside an international school and residential components comprising serviced apartments and villas, rounding out what was envisioned as an integrated township development combining healthcare, education, commerce and residential living.
The proposed cessation of the collaboration raises questions over the future direction of the MediCity project and what it could mean for FBG’s broader development plans in the Batu Kawan area moving forward.
