The Malaysian Government has announced an allocation of MYR200m ($66m) for the construction of a new hospital to replace the existing Sri Aman Hospital in Sarawak, East Malaysia.

Malaysian Prime Minister Datuk Seri Najib Tun Razak said the hospital was necessary as the existing one was no longer suitable.

Ground work will be carried out as half the site is swampy land, following which foundations will be laid.

The new hospital will be a polyclinic and will able accommodate 108 beds.

Construction work will start this year and the hospital is expected to be completed by 2013.