In 1980 the Malaysian Government decided to establish a School of Medical Sciences under the aegis of USM to be located on a site of 180 acres adjacent to the then newly constructed 770-bed General Hospital built by the Ministry of Health. This hospital was also to be expanded under this project by an additional 340 beds to become the teaching hospital for the school. The site was to be developed as a total campus with an initial enrolment of 640 students and ultimate enrolment of 800 in any one year.

Besides normal medical departments, facilities for common academic use e.g. Laboratories, Assembly Hall, Library, Museum, etc., have been designed together with a variety of residential facilities for students, staff, faculty and visiting professors.

This  RM 350 million project was completed in 1992.