Forest City Singapore: Ambitions, Challenges, and the Future of an Eco-Smart Mega Project.
Forest City is an integrated property development located in Iskandar Puteri, Johor, Malaysia, near Singapore, built on reclaimed land spanning four man-made islands covering about 30 square kilometers. Developed primarily by the Chinese company Country Garden in cooperation with Malaysian state government affiliates, the project was launched in 2016 and designed as a futuristic eco-friendly smart city intended for luxury living, business, and investment under the Belt and Road Initiative. It aims to combine ecological sustainability with cutting-edge technology and includes a special financial zone and duty-free island among its key features.
Forest City was originally marketed mainly to wealthy Chinese buyers seeking affordable seafront properties near Singapore, but political changes in China that limited overseas spending, along with the COVID-19 pandemic and political issues in Malaysia, led to sharply reduced demand and sales. Despite plans for a population of 700,000, the actual residential population by 2023 was around 8,000 to 9,000, leading to its reputation as a "ghost city." The project has faced environmental criticisms due to coastal habitat destruction and concerns about land stability from rapid land reclamation.
The Malaysian government has since designated Forest City as its first special financial zone (SFZ) with tax incentives aimed to attract global businesses, family offices, and fintech companies. It became the fifth duty-free island in Malaysia, offering exemptions on import and sales taxes on various goods to boost economic activity. Recent developments include international school campuses, healthcare facilities, a marina hotel, golf courses, and recreational amenities to enhance livability and attract more residents and investors.
Overall, Forest City remains an ambitious but challenging project transitioning from luxury real estate development to a strategic financial and business hub with ongoing efforts to revitalize and realize its potential as a unique eco-smart urban center near Singapore.