Johor govt: Forest City foreign ownership issue must be quickly resolved

JOHOR BAHRU (Sept 8): A solution is quickly needed to resolve the issue of foreigners purchasing residential properties at the Forest City mega project (pictured) in Gelang Patah, said the Johor state government.

According to a report from The Star daily, State Consumerism, Human Resources and Unity Committee chairman Dr S. Ramakrishnan is of the view that the matter should not be prolonged on as it would send a wrong massage to foreign investors.

"We need to come up with solutions for all, and personally I'm confident the matter will be resolved," the English daily reported him saying at a media conference during the launch of Iskandar Malaysia Employment Fair 2018 here today.

It was reported two days ago that the government is looking into the feasibility of reducing the percentage of foreign ownership in Johor's Forest City project.

“It’s still premature, but I think the direction should be going for less,” Housing and Local Government Minister Zuraida Kamaruddin was reported as saying.

Buyers from China are reported to account for 70% of properties bought in Forest City thus far.

The Forest City project is developed by Country Garden Pacific View Sdn Bhd, which is owned by Country Garden Holdings, a Chinese company.  

It was also reported last week that the Johor government will soon come up with clearer guidelines on residential development, especially involving the issue of gazetted international land.

“Johor’s current housing policy, especially those concerning international lots for foreigners such as the Forest City project, is seen to have some weaknesses,” Housing and Rural Development Committee chairman Dzulkefly Ahmad told the media.

He said the Johor government has formed a task force to examine loopholes and inadequacies related to the overall property development situation in the southern state.

“The task force will also identify the other shortcomings with regards to the overall housing development in the state,” Dzulkefly said.