Forest City in Johor was once introduced as a mega project worth around RM450 billion that is expected to become a world-class smart city.
It was developed with the hope of attracting foreign investment, international residents and spurring new economic growth in the region. However, after more than a decade, this project is often associated with the issue of “empty cities” and low occupancy rates. Investment strategy
Among the main reasons is the high dependence on buyers from China in the early stages.
When the Chinese government tightened capital controls, many buyers found it difficult to withdraw money for property investments abroad. This caused demand for residential units to drop significantly.
In addition, there was also an oversupply of property when thousands of units were completed but not in line with the number of buyers.
As a result, many apartment units were unoccupied and the city atmosphere became quieter than originally expected.
Location and accessibility factors also played a role. Despite being located near Singapore, daily commuting is still considered impractical for many workers.
Furthermore, job opportunities in the surrounding area are still limited, making it less attractive to live there.
The situation worsened during the COVID-19 pandemic, when the Malaysia-Singapore border was closed.
Foreign investors were unable to enter, property trading slowed, and development momentum was temporarily halted.
Other issues such as environmental concerns, particularly the impact of sea reclamation on marine ecosystems, and changing government policies also affected investor confidence.
However, Forest City is not necessarily a complete failure.
With new initiatives such as the Johor–Singapore Special Economic Zone (JS-SEZ) and the Special Financial Zone (SFZ), this project has the potential to be given a new lease of life and may turn into a more active economic hub in the future.
