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CNA
a day ago
- Business
- CNA
What will it take to revive Forest City, Malaysia's US$100 billion ‘ghost town'?
JOHOR BAHRU, Malaysia: Insurance executive Wafa Aina Wahid's daily commute to Johor Bahru used to take nearly two hours from the town of Kluang. Her husband was based even further away from her — he was working, and renting a place, in Singapore. But just recently, the couple made a move that would cut her commuting time by more than half and bring them together again. They signed a lease for a three-room apartment in Forest City, the US$100 billion mega housing project at the southern tip of Johor, just across from Singapore. And Wafa was 'so excited to move'. 'Finally, I'm not going to do a long-distance relationship with my husband,' said the 27-year-old. 'He can commute daily (from) here.' Convenience was not the only reason they seized this opportunity. They were also attracted by the rental. 'Here, I can easily get, (for) below RM2,000 (US$465) per month, … an apartment with two bathrooms, but (in) other places, maybe just a studio (at) the same price,' said Wafa. 'It's more, I'd say, affordable compared to other places.' Forest City has a notorious reputation, however, having gained international attention in the last few years as Malaysia's ghost town. It was once billed as a 'living paradise' — a luxurious, eco-friendly and smart city development with a mix of apartments, commercial spaces, malls and hotels. Jointly developed by Chinese developer Country Garden and Esplanade Danga 88, a Malaysian company backed by the Johor state government and Johor's sultan, the project is linked to the Belt and Road Initiative, China's mega infrastructure and trade network. Forest City is meant to accommodate around 700,000 people on four man-made islands by 2035, with a total land area of nearly 14 sq km — about three times the size of Sentosa — once the reclamation is complete. But since the project launch in 2014, only one of the islands has been reclaimed, with about 20,000 people currently living there. The project started stalling in 2017 when the Chinese government introduced capital controls on money leaving the country. This affected Chinese buyers seeking properties abroad, the primary target for Forest City's developers. Malaysian politics also had an impact on sales when former Prime Minister Mahathir Mohamad declared that overseas buyers would not easily receive residency visas. He had initially threatened to ban foreign purchases in Forest City altogether. Then the pandemic hit, and travel restrictions led to a significant decline in demand. At the same time, China's property sector downturn left Country Garden battling a liquidity crisis, with total liabilities of US$164 billion at the end of 2023, including US$16.4 billion in offshore debt. Plans are now underway to revive and transform the Forest City project. And with a new cross-border development realised in January — when the agreement to establish the Johor-Singapore Special Economic Zone (SEZ) was signed — the question arises as to how much of a boost this will be for Forest City. With its growing residential community, is it not even a ghost town any longer, the programme Insight also asks. BREATHING NEW LIFE INTO THE PROJECT The proposal to integrate Forest City into the Johor-Singapore SEZ was made last August by the Johor state government. Extending across Iskandar Malaysia and Pengerang in Johor, the SEZ — at 3,571 sq km — is close to five times the size of Singapore and is aimed at improving trade and business ties between the two neighbouring countries. If the SEZ succeeds, more people could be working and living in southern Johor, said Adib Zalkapli, managing director of political risk consultancy Viewfinder Global Affairs. 'So Forest City, being a ready-made township, could attract some of these people.' And one important key to the SEZ's potential success is the financial centre that is Singapore. 'What Singapore has is advanced logistics … (and an) international trade hub,' cited Lee Ting Han, chairman of Johor's investment, trade, consumer affairs and human resources committee. 'In Johor, what we can offer is a talent pool, infrastructure, land, resources, et cetera. 'Therefore, we think that with Forest City being included … (in) the Johor-Singapore SEZ, Forest City itself may be able to complement part of the existing ecosystem within Singapore.' Forest City's value proposition does not only lie in its housing. It was declared a duty-free zone last year to support tourism and bolster the local economy. The Malaysian government has also designated it as a special financial zone, to breathe new life into the project by transforming it into a hub for international capital. One plan is to turn Forest City into a destination for global family offices — companies that manage a family's wealth and investments. The goal is to attract high net-worth individuals to the island. In Malaysia, a single-family office can be set up with a minimum of RM30 million in assets under management, which is lower than the minimum of S$20 million required in Singapore. Noting that the Asia Pacific is one of the world's high-growth areas, PricewaterhouseCoopers Malaysia tax partner Fung Mei Lin said: 'There are a lot of wealth movements, and I don't think it's unreasonable for Malaysia to (be) trying to attract a part of that.' To this end, Malaysia has offered a zero per cent tax rate for family offices located in Forest City, which Fung said would be 'a no-brainer' for these offices, compared to the standard corporate tax rate of 24 per cent. This is part of a tax incentive package for the special financial zone that the government announced last September to stimulate financial services such as fintech. And in April, two family offices got the ball rolling as the first to set up in Forest City. COMPLICATIONS REMAIN Things are not necessarily going to be straightforward for Forest City, however. According to the finance ministry, 70 per cent of the properties sold have been bought by Chinese investors. The project is still largely marketed to this group, even as their appetite for investment has waned following China's property sector troubles. While Chinese overseas investment in real estate has seen a 'slow recovery' to about US$10 billion last year, said National University of Singapore Business School dean's chair professor of real estate Qin Yu, about US$40 billion was invested in 2017 by comparison. Can investment levels recover to the peaks in 2016 and 2017? 'Probably not,' she said. But Danny Wong, chief executive officer of private wealth management company Areca Capital, is confident that the Chinese will 'come back' 'China's population is so huge, and internal demand itself can make them vibrant,' he said. 'What they need to do is stabilise the whole situation. … It's just a matter of time.' Having lost as much as 97 per cent of its market value from its peak in 2018, however, it is unclear whether Country Garden can continue to develop Forest City. The company, which is still mired in debt, declined comment. 'It might be challenging for (Country Garden),' said Qin, 'because (it) even has trouble … finishing some of the projects within mainland China.' Last November, Country Garden said its Malaysian projects were 'operating normally'. The developer is now in talks with creditors to restructure its offshore debt to avoid liquidation. But should it fail, who will complete the Forest City project? Johor's government, for one, is 'not in that position at the moment', said Lee. 'The government isn't directly involved in the project itself, so we don't have any equity participation.' Nor should there be a government bailout because of the scale of the project, said economist Geoffrey Williams, the founder and director of Williams Business Consultancy. 'The best way for the government to support (it) is to provide a deregulated, liberal environment where people can get access to the licence to operate,' he said. 'Nobody in Malaysia would be happy to see government money taken from health, education and social protection in order to bail out a failed Chinese property development.' The burden could fall on Forest City's co-developer, Esplanade Danga 88, whose controlling stake is owned by Johor's sultan and which has a 40 per cent share in the project. 'Esplanade Danga 88 can become the master developer,' suggested Samuel Tan, CEO of Olive Tree Property Consultants. But it would 'have to find other developers or a joint venture partner' for the remaining islands. New developers, however, may not wish to undertake the original plan. 'It's best if the market decides whether the area should be expanded or it should remain as it is,' said Adib. 'It'll have to depend on the demand.' Without the Chinese, where this demand will come from is unclear. Although prices in Forest City have come down since launch, its cheapest homes are typically priced at more than RM520 per square foot, compared to the median price of around RM400 in Johor Bahru. With the Chinese not buying and prices 'too high for locals', there is a 'huge supply and no demand', said Williams. 'When you're so highly leveraged and have spent so much money, you can't really bring down the price of the units because then you're going to lose not just on individual units but across tens of thousands … of units.' Recent revisions to the Malaysia My Second Home (MM2H) programme — a long-stay visa programme — could expand the foreign buyer pool, however, beyond the Chinese. Under the previous government, principal applicants had to park RM1 million, for example, in a fixed deposit to attain a five-year multiple-entry visa. The current administration has reduced this to US$150,000. Lee is hopeful the current policy will help. 'We do receive some inquiries, and it seems to be generating positive feedback,' he said. 'And banks are looking to set up their office within Forest City.' DOES IT STILL DESERVE ITS MONIKER? For all the portrayals of Forest City as a ghost town before this, entrepreneur Her Kai, who owns two units in the development and lives there, does not think it deserves to be depicted as such. 'After the pandemic, there was a lot of negative news, of which about 60 to 70 per was false, in my opinion,' said the 40-year-old, who was born and raised in Shanghai but has made Malaysia his home since 2019. 'There are plenty of people, including tenants and owners. … I know the real situation. If it were truly a ghost town, we'd all have left.' Certainly, there are more occupants now, said Mohd Nizamuddin Zainuddin, 35, who moved to Forest City with his wife just before the pandemic struck and is still renting a unit there. This is also the case compared to 2023, when 9,000 people were living there. And its landscape has been well maintained, the businessman added. 'If I can afford to own a house here, I'll continue living here.' Some 30 condominium blocks have been completed, along with dozens of landed homes. With the uptick in occupancy, businesses have followed suit. Felix Lam used to work in Kuala Lumpur, offering internet services to consumers. But he decided to relocate to Forest City to meet the demand for connectivity on the island. 'Many people here still have a wait-and-see attitude, wondering whether it can grow and help their business thrive,' said Lam, who also rents one of the apartments for his staff, paying RM1,500 a month. 'My perspective is different. I believe that even though Forest City had a slow start, there's a high demand and very high requirements. As long as we provide good services, it shouldn't be a problem.' More supermarkets and food outlets are opening in the area, according to Lee. And locals are patronising places there for recreational purposes, 'so it isn't really a ghost town', said Olive Tree's Tan. 'But the management hasn't addressed this issue very well by putting up a more positive narrative (of) the development and attraction of Forest City,' Tan added. From the outside, Faezatul Khatimah did wonder whether people would want to rent in Forest City because 'it didn't seem to have that many occupants' three years ago, when she ventured into real estate to earn some side income. That was when she saw an opportunity. 'I found out that many people came here every day to view the houses,' she recounted, 'so I started uploading posts on social media platforms like Facebook and TikTok.' Demand was high enough that she eventually became a full-time real estate agent, and she finds herself a lot busier these days. One of her clients is Wafa. 'Looking at the facilities, looking at the environment, looking at everything here,' said Wafa, 'I think it's not the ghost town that people have been talking about.'
BBC News
24-05-2025
- Business
- BBC News
Could Sydney-style water taxis come to Portsmouth?
For those living near harbours in the South of England, the idea of calling a water taxi to get to work or home from a night out could soon be a idea was the subject of a summit last week involving politicians, ferry providers, business leaders and experts in marine event at the Portsmouth's historic dockyard heard the system could work on an "on-demand" basis, like Uber, or on a scheduled timetable, and could be key to helping alleviate some of the South's traffic ferry operators warned that public subsidies would be needed to get services off the ground and encourage people out of their car. The event was organised by Dame Caroline Dinenage, MP for Gosport, who said she wanted to hear the "art of the possible" and mimic cities like Sydney in Australia, which use water taxis for commuting and afterwards she said: "There's a definite enthusiasm to get things up and running to make the most of the water we have here. Everybody in one room helped see what the opportunities and obstacles are." Supporters of the idea included the operators of Gunwharf Quays, Hampshire chamber of commerce and Business South who said it could help encourage economic growth. But some of ferry operators at the summit said it was a challenge to change mindsets, to get people onto boats and out of cars, particularly outside of the summer months. The operator of the overnight ferry connecting Portsmouth and Gosport stopped sailings in February due to a lack of demand. Many in the industry said a change in government policy was needed are government grants to support public transport - like bus service improvement plans (BSIP) and the move back to public ownership for trains - but no such financial support exists in England for the maritime Rayment, owner of Blue Funnel Cruises, said: "Scottish ferries are subsidised, the ferries which cross Sydney harbour get financial support and there's been grants to the Thames clippers in London, but down here on the South Coast, there's nothing we can apply for, that's frustrating."Many in the room said public subsidies were needed while the service was in its infancy as the "passengers won't come instantly".In response, Caroline Dinenage said political backing was key as well as business support. You can follow BBC Hampshire & Isle of Wight on Facebook, X (Twitter), or Instagram.
Bloomberg
09-05-2025
- Bloomberg
San Francisco BART Shutdown Cuts Off Train Service Across Region
The San Francisco Bay area's largest train system shut down Friday after a computer problem, leaving thousands of workers across the region without access to a critical commuting option. The rare shutdown included the Bay Rapid Transit's entire 131-mile network, which funnels riders from the suburbs into Oakland and downtown San Francisco and is a key transit mode for the region's airports.
Gizmodo
08-05-2025
- Automotive
- Gizmodo
This Safe 16 Mph Electric Scooter Is 40% Off, As Amazon Clears Stock With No Markup
This electric scooter costs two to three times less than its competitors. Summer is just around the corner, now is the perfect time to spend money on a fun, and eco-friendly means of getting around town. Amazon's current sale of the Volpam electric scooter at an all-time low price of $179 makes the chance to try out a safe scooter. Despite its good safety ratings and strong customer reviews, Amazon is clearing out its stock at this record low price, a discount we've only seen once before (back in April). Otherwise, this scooter has consistently sold for $289. See at Amazon Folds Into One Second The Volpam scooter stands out for its balance of performance, portability, and safety, all at a budget-friendly price. It features a 350W powerful motor which achieves a maximum speed of 16 mph, which is way enough for commuting within the city or beach cruises. It's high-torque, low-power motor ensures that you have the speed and efficiency without using up the battery prematurely. This scooter offers a good battery which provides up to 12 miles of range on a single charge which is perfect for daily commutes, short runs or weekend trips. It charges quickly and easily and it needs only 4-5 hours to completely recharge. There's a built-in cruise control feature which allows a hands-free ride where you can maintain a steady speed on longer distances without constant throttle tweaking. You will also love how portable it is: with its quick fold system, the scooter folds into one second and can be stashed in your trunk or dragged aboard the bus. At close to 30 lbs, it's light enough to carry anywhere, to the office, the park, or to a buddy's house. The 8.5-inch solid tires are self-maintaining and durable enough for typical city roads so you don't have to go through the bother and cost of repeatedly repairing tires. Safety hasn't been overlooked either, and this is why it is so popular: The scooter features a dual braking system-EABS electronic braking and a rear drum brake-providing reliable stopping power even in sudden situations. Bright LED lights and a clear display ensure you're visible at night and always aware of your speed, battery level, and other key stats. The majority of the comparable-spec rivals are much more expensive, and this model's balance of speed, range, and build quality is hard to surpass at this price. With Amazon having a clearance sale, this could be your last chance to get a well-rated, secure electric scooter at such a discount price. See at Amazon
Daily Mail
07-05-2025
- Business
- Daily Mail
King Charles switches up his commute as he takes an Uber boat along the River Thames
The King undertook a royal first on Wednesday - hopping on a hybrid Thames Clippers ' Uber boat' for his commute to work. His Majesty, 76, looked delighted with the variation from his State Bentley on a sunny, although slightly gusty, day in London with the famous skyline including the Houses of Parliament behind him. He arrived on the floating pier at Westminster with minimal fanfare, where he undertook a short meet and greet with executives accompanied by the Lord Lieutenant of London, Sir Kenneth Olisa. 'Am I going to get into the right boat? There are so many to choose from,' Charles joked, as he walked past another full of commuters and tourists just departing. On board the battery-powered ' Mars Clipper' he was introduced to employees and apprentices during his ten minute journey to the Thames Tideway Tunnel project. On route, he learnt more about the positive impact the hybrid vessel - one of three in the fleet - has on London's water artery. Uber Boats serves 24 piers across the capital in 10-20 minute intervals and Thames Clippers has been heavily investing in hybrid and hydrogen-powered vessels. 'It's a nice way [to travel],' said the monarch, admiringly. 'Is this just one of a number of these vessels?' Smoothing his hair and admiring the view as they powered along the water, the King chatted enthusiastically about the new technology that powered the fleet. As it pulled into dock he remarked: 'Fantastic,' and then, spotting Sir Ken disembarking with him dressed in his full formal finery he said: 'Take care your spurs don't caught in that!' The second part of his visit took him to the Thames Tideway Tunnel project - known as London's 'super sewer' - at Bazalgette Embankment. Following ten years of construction the 25km-long sewer has now been switched on to protect the River Thames and was officially opened by the king. The new system can store the equivalent of 640 Olympic swimming pools of sewage and has already captured more than six million tonnes of storm sewage since February. The original Victorian system was designed for a population of just four million and while still in workable condition, has struggled to cope with population growth and rainfall caused by climate change. Accompanied by the Secretary of State for Environment, Steve Reed, Charles toured the site and viewed a live tracker displaying the tonnage of sewage taken by the tunnel. On the Uber boat, he learnt more about the positive impact the hybrid vessel - one of three in the fleet - has on London's water artery 'Are you going to finish it and then do something else?' asked the King. He also met with some of the 25,000-strong construction workforce who have been involved in the project, which is still ongoing. He patted one man on the arm as he told him his family was back in India. 'They are all well, I hope? he asked. 'Have you got the crane?' he asked another. The King also walked through a 'mini park' planted for the local community and visitors including 71 trees and 3,000 plants. Standing by several giant ventilation funnels for the sewer inscribed with poetry, Charles viewed the vista admiringly. Andy Mitchell, CEO of sewer builders Tideway, then invited him to unveil a plaque commemorating his visit. He said: 'It's taken over ten years of work from an awful lot of people to get where we are now. It's a huge feat of engineering, something we are very proud of. We have created a lot jobs, new spaces and a cleaner river along the way. We hope what we have done here will show to others what can be done.' Afterwards he added: 'The king was fascinated with detail and the quality of the space, as well as the humanity of it with all the planting. The team were absolutely thrilled with his comments on the quality of the work here. In an average year there are 40 million tonnes [of sewage] and we will be preventing the vast majority of that from going into the river.' Charles greeted poet Dorothea Smartt, whose poetry about the Thames is printed on the ventilation columns on the new tunnel. The King is known for his love of nature and passion for bringing about conversations about climate change, first speaking about the dangerous effects of plastic pollution on the environment when he was 21 years old in 1970. In 2023, he famously said that the 'world does not belong to us' at Cop28 in Dubai, adding that his grandchildren, Prince Louis, Prince George, Princess Charlotte, Princess Lilibet and Prince Archie would be living with the effects of our warming planet. Tideway say that everyone it rains, its high-tech computers calculate how much sewage is filling the tunnel network instead of spilling into the river. This month, the new super sewer was connected to the Lee Tunnel, which has been operation since 2016 and runs from Stratford to East Ham, completing the full London Tideway Tunnel network. The new tunnel will protect the Thames from sewage pollution, with Tideway data showing that a whopping 6,790,231 cubic meters of dirty water has been diverted away from the river since August 2024. The monarch beamed as he spoke with Sir David Attenborough while the pair posed for pictures together on Tuesday evening This visit comes after Charles attended the world premiere of Sir David Attenborough 's new documentary - Ocean - on Tuesday evening. The royal, 76, was suited and booted for the special event and looked dapper in his black tux as he stepped out at the Royal Festival Hall in London. Charles was seen greeting people and waving at wellwishers as he made his way down the blue carpet. The monarch also beamed as he spoke with Sir David while the pair posed for pictures together. The legendary environmental broadcaster, 98, has his latest documentary which releases on his 99th birthday on Thursday. The King and Sir David are thought to have a close relationship, as the presenter was also good friends with his mother, the late Queen Elizabeth.
