The Enigmatic “Ghost City” of Malaysia
When you think of Malaysia, the image that often comes to mind is the iconic Petronas Twin Towers in Kuala Lumpur or the stunning islands along its coast. Among these, Borneo stands out as one of the most beautiful islands in Southeast Asia. However, there’s another side to Malaysia that many are unaware of — a mysterious place known as the “ghost city” that looks like it belongs in a futuristic sci-fi movie.
This eerie city, called Forest City, was officially launched in 2016 through a collaboration between Malaysia and Country Garden, China’s largest property developer. It was envisioned as an eco-friendly, modern metropolis with amenities such as a waterpark, offices, bars, restaurants, and even a golf course. With a budget of $100 billion, the project aimed to create a thriving community on a reclaimed island, offering duty-free status and tax incentives to attract wealthy Chinese buyers looking for second homes.
However, the dream has not materialized. Today, Forest City remains largely abandoned, with only around 9,000 residents inhabiting its vast skyscrapers. Originally, the city was expected to house up to 700,000 people, but many of the 28,000 housing units sit empty or occupied by just a few tenants. This stark contrast has led to the city being dubbed a “ghost city.”
Factors Behind the Decline
Several factors contributed to the downfall of Forest City. Country Garden faced financial difficulties, which were compounded by the struggles within China’s real estate sector. Additionally, the Chinese government imposed restrictions on overseas real estate investments, further limiting interest in the project. The impact of the COVID-19 pandemic, with its travel restrictions, also played a significant role in drying up both money and interest.
Despite its ambitious plans for sustainability, including water recycling systems, renewable energy sources, and advanced water conservation techniques, Forest City faced criticism for its environmental impact. The city was built on seagrass meadows and mangrove forests, which are vital ecosystems. This development raised concerns among environmentalists and local communities.
Former resident Nazmi Hanafiah shared his experience with BBC, stating that after six months in Forest City, he could no longer endure the environment. He mentioned that he didn’t care about his deposit or the money, but he had to leave. By 2023, only 10% of the project had been completed, leaving many areas in a state of abandonment.
A City in Transition
Visitors to Forest City often describe the eerie atmosphere of the deserted beach and the shopping mall, where closed restaurants and bars stand as silent reminders of the city’s unfulfilled potential. The stark contrast between the showroom displaying what the city is meant to look like and the reality of its current state is striking. The streets are nearly empty, and the city feels almost too clean, creating an unsettling sense of isolation.
At night, the city is plunged into near darkness, with few lights illuminating the towering buildings. This silence and emptiness serve as a poignant reminder of the city’s uncertain future.
The Future of Forest City
Despite years of neglect and negative publicity, there is hope for a revival of Forest City. Recent efforts include introducing tax and visa incentives to attract local buyers rather than foreign investors. The focus is now on appealing to digital nomads, investors, and companies, offering a 15% income tax rate for known workers, corporate tax breaks, and foreign ownership benefits.
Another key challenge is the city’s poor public transport links. To address this, the Malaysian government is working with Forest City officials to develop a transportation hub, including road and rail networks, as well as a ferry service. Given its proximity to Singapore, these new transport links could provide convenient travel options between Malaysia and the neighboring country.
For those interested in exploring this unique destination, Forest City is just a 35-minute drive from Johor Bahru Sendai International Airport. While many tourists visit Malaysia’s capital city, Kuala Lumpur, Forest City offers a different kind of allure, making it one of the country’s more intriguing spots.
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