"The Islamic Center was initially known as Balai Islam under the Division of Student Affairs (HEP). The plan to build an Islamic Center at the Penang Main Campus began to be discussed at the end of 1972 and continued until 1973. A memorandum about this project was submitted to Y.Bhg. The first Vice Chancellor, Tan Sri Hamzah Sendut. USM's Islamic Student Association (PMI) has played an important role in preparing the memorandum for the establishment of the Islamic Center at the Universiti Sains Malaysia campus. Y. Bhg. Tan Sri Hamdan bin Shaik Tahir, the 2nd Vice Chancellor, has given serious focus to this project and he has been trying to get financial assistance from the Central government and the government of Saudi Arabia. As a result, in 1977 the government gave serious attention under the 2nd Malaysia Plan. The construction cost is estimated at RM 3 million.

This mosque has been named Al-Malik Khalid Mosque in appreciation of the good services of King Al-Malik Khalid who is the ruler of the 3rd kingdom of Saudi Arabia who also contributed a large part of the construction cost of this mosque. The Islamic Hall Complex was inaugurated by His Majesty Sultan Haji Ahmad Shah Al Musta'in Billah Ibni Al-Marhum Sultan Abu Bakar Ri'ayatuddn Al Mu'adzam Shah on September 2, 1983 and was upgraded as an Islamic Center, Universiti Sains Malaysia Pulau Pinang."