Scams, illegal businesses pose new setback for Johor’s Forest City revival
Forest City is courting investors and trying to shed its “ghost town” label, but recent controversies are testing efforts to revive the development and its property market.
Forest City, a US$100 billion development in Johor, Malaysia, is struggling to overcome recent controversies that are threatening its efforts to revive the property market and shed the "ghost town" label. Despite attempts to reinvent itself as a Special Financial Zone (SFZ), the development has faced setbacks due to illegal gambling operations and the closure of Network School, a community catering to technology entrepreneurs and digital nomads.
Recent police raids uncovered online scam operations, including fraudulent cryptocurrency investments and romance scams targeting overseas victims. The raids resulted in the arrest of 335 individuals, mostly foreign nationals, and the seizure of computers and mobile phones. Property owners and experts warn that these incidents have damaged Forest City's reputation, potentially impacting property values, business confidence, tourism, and investment decisions.
Muhammad Aidi Rashid, a resident in the development, has taken extra security measures due to concerns about crime following the police raids. Property agent Aqil Amran has also encountered suspected scam operations, leading to the termination of rental contracts. Criminologist P Sundramoorthy noted that the development's large number of vacant properties could make it particularly vulnerable to illicit activities.
While not all recent controversies involve criminal activities, the closure of Network School due to licensing and premises-use breaches has also hindered Forest City's image. Property consultant Samuel Tan stated that both the scam raids and Network School's closure have heightened buyer and tenant caution, temporarily dampening activity in the market.
Forest City's sizeable vacant properties and its proximity to Singapore, a global air hub, may attract transnational criminal networks. Despite these challenges, the development remains a significant investment destination, aiming to surpass its RM2 billion investment target for the year.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
