The new Padang Besar Hospital project has been put on hold because the economic situation now does not favour the undertaking of such a costly project, said Perlis Health and Rural Development Committee chairman Jafperi Othman.

He said the Economic Planning Unit in the Prime Minister's Department was forced to make the decision despite the state government asking for it to be given priority.

"This project is important for Perlis residents in the long term. That is why we want it to proceed," he told reporters on Tuesday.

However, he added that the federal government had given approval for the construction of a new building besides the Padang Besar District Health Clinic, which when completed would be able to cater to 200 patients.