Malaysia's $100B “Ghost Town”: Can Forest City Be Revived? | Insight

On September 20, 2024, the Malaysian government unveiled a series of incentives aimed at transforming Forest City, the multibillion-dollar mixed-use megacity project, into a special financial zone. Among these incentives are a 15% income tax rate for skilled workers, multiple-entry visas, and a zero-percent tax rate for family wealth offices, and attractive corporate tax rates. The goal - sparking life into what has been dubbed Malaysia's Ghost Town.

Once touted as an eco-friendly metropolis, why did Forest City become a largely vacant white elephant, with only 15% of the development completed? The project, which was expected to house 700,000 residents, has attracted just 9,000 inhabitants to date.

Will these new measures rejuvenate this struggling megacity? Can Forest City, originally designed as a residential and lifestyle hub, finally fulfil its original vision, or will it remain a cautionary tale of hyper ambition meeting economic realities?

00:00 Introduction
01:22 Forest City's selling point
07:24 COVID-19's impact on the Forest City
10:14 M'sian politics' impact on Forest City's sales
14:41 China property sector's downturn
20:22 Chinese regulations' impact on Forest City
22:37 Is Forest City really a Ghost Town?
28:41 How Malaysia plans to revitalize Forest City
32:41 Can Johor-Singapore Special Economic Zone boost Forest City?
36:47 Will Chinese real estate investors return?
39:25 What if developer Country Garden cannot continue the project?
43:05 What's next for Forest City?

=========
ABOUT THE SHOW: Insight investigates and analyses topical issues that impact Asia and the rest of the world.
==================
#CNAInsider #CNAInsight #Malaysia #ForestCity #Johor

For more, SUBSCRIBE to CNA INSIDER!

Follow CNA INSIDER on:

[metalextras]

It's too expensive for average Malaysian, ownership rights also not attractive enough for foreigners. a landed property in Malaysia is also cheaper for locals. Those forest city is the best place for the next scam center...

[lfgame]

You can't create a mega city with just fancy buildings. It takes a lot of time for a city to grow organically to a mega size. This project seems too rushed, too ambiguous and too hopeful, and now it has become a trap. Should the government pool its (limited) resources in this or should it just cut its losses?

[a]

A super expensive, self-sufficient development isolated from any other city built to be sold to foreigners. This sounds like a colony, where the rich foreigners never have to mix or integrate with the locals. It’s a good thing it failed. Now, hopefully it be revived with more benefit to local Malaysians.

[mayfoo]

After watching the entire video it does appear that the main reason why forest city stalled is because its main developer country gdn is financially strapped due to the chinese govts new policies

[juyonchowlong]

The project was made for the Chinese, not Malaysians.

[kelvin.]

To reclaim land for a country with so much excess land itself proves how much corruption is there. And the future danger of this reclaimed land sinking is real😅

[ChinnayyaPillaiThanasekaran]

If you don't want foreigners to stay or be a permanent resident why do people want to buy a house in Malaysia. For whom these houses are built. Nobody is going to invest so much if you are not given residence.

[ernestkj]

If u interview residents, owners, biz owners, property agents, gov agency, u are bound to get positive words la.. they are stake holders looking to exit. if its doing so well, developers will be starting to build the rest of the planned blocks, not like now having so many different medias reporting its ghost sightings feel or telling u 'im not dead yet'

[lleong]

I was always reminded of the flip flopping of regulations and the CLOB event of the past.. which make me so apprehensive however tempting this project is..

[yooong]

The fundamental challenge arises from the erratic nature of government policy, which fosters a climate of uncertainty and apprehension regarding when these policies may ultimately have detrimental effects on individuals and businesses alike.

[christopherk]

The project is so massive that just basic maintenance will drain out a lot of money

[ynnos]

An mrt or subway connecting it to living cities and if possible a ferry system to Singapore will jumpstart it to life.

[HennyWho_]

Imagine transforming all those ghost cities into vibrant havens by planting lush vines and installing sprinklers for a perfect watering system….Just like in Planet of the Apes, colorful flowers bloom everywhere, and amazing spots to skate are created, creating a cozy cherry blossom and Jakarta tree forest paradise for everyone. Let’s make these places come alive and bring the homies together!

[n_noor.]

Forest city sebenar dibina untuk tarikan warga asing, dengan harga yg mahal adalah mustahil warga kebanyakan mampu membeli.

[AW-tchy]

The biggest worry is sinking ground in the reclamation area. Already seen are cracks in the buildings columns due to differential settlement.

[chrysostomgunaseelan]

I find this clip to be a PR exercise in wishing to save and profit from the project when the entire global political and economic landscape has altered irreversibly, where the old presuppositions concerning China's role for instance do not necessarily obtain: and without the support of the global trade and business structure, it appears now to be a quaint curiosity.

[lktzu]

Corruption is rampant. I only feel for the regular citizens whose lives didn't get any better.

[BlueEagleSG]

It cannot be revived. It’s located in the wrong location. It’s too far away from the city centre

[zainudinafandi]

Dr Yu QIN has now assumed a new position.
She’s now the Dean's Chair and Associate Professor
Department of Real Estate
NUS Business School

[pointnemo]

I would never invest in such apartment unit, if i had money i would rather buy a small piece of land. This apartment value is already depreciating