Health minister Dzulkefly Ahmad said the project, which began in November 2017, is only 84% complete despite receiving eight extensions over the years, with the contractor being fined RM2.5 million a month for late delivery.

“The completion of the project depends entirely on the commitment of the contractor,” he said in a Bernama report.

He said the health ministry, the works ministry, and the public works department (JKR) will determine the best way forward, with any decision on the contract resting with the works ministry and JKR.

Dzulkefly inspected the construction site today and said the government remains committed to completing the hospital.

Approved under Budget 2016, the hospital is designed to reduce congestion at the current Kemaman Hospital in Chukai, where bed occupancy now exceeds 90%.

In November 2023, then health minister Dr Zaliha Mustafa said the hospital was 75% complete and was expected to be completed in August 2024.

She said the RM450 million hospital would be equipped with 300 beds, eight operating theatres, an intensive care unit, a specialist clinic complex, and an ambulatory care clinic.