Zuraida: Dr M's 'no foreign buyers' remark on Forest City will be studied

Prime Minister Dr Mahathir Mohamad’s remark that foreigners will be prevented from purchasing properties at the Forest City project in Johor will be studied before a decision is taken to chart "the way forward", Zuraida Kamaruddin said today.

The housing and local government minister said she had been instructed to chair a committee to look into the matter.

"Mahathir's statement will be studied, and we will engage agencies, as well as the developer, to see the best way out, or way forward,” she said at a press conference in Putrajaya this morning.

The committee will submit a report to the prime minister on the matter, Zuraida added, after which he will respond with the necessary action or guidelines.

Zuraida also noted that some of the properties in Forest City had been sold in China, but not through the local system.

Built by China's Country Garden Holdings Company in a joint venture with businesses held by the Johor sultan, Forest City was envisioned as a sprawling 13.86 sq km smart city built on four artificial islands.

The developer had projected a population of 700,000 by 2035, but the project has mostly been marketed to foreigners.

"We have no engagement with Forest City. When the project was launched (in the BN era), it was not through the National Physical Planning Council (MPFN)," she said.

The committee will hold a meeting with the developer to help gauge the mechanism of purchasing properties there, she added.

"We will hold a meeting with them and scrutinise the deals, and terms (previously) made."

Asked if Mahathir's statement yesterday meant that there was a temporary freeze on foreigners purchasing Forest City properties, the minister said: "Developers should get the message."

'Seek clarification'

According to Zuraida, Forest City developer Country Garden Pacificview Sdn Bhd (CGPV) has not written to the ministry to seek clarification on Mahathir's remark and the status of the project.

"They should have the courtesy to write in to seek clarification.

"We have not decided on who will be involved in the committee. For now, it will include the Housing and Local Government Ministry, the Finance Ministry, the Johor state government, with others to be roped in if need be."

Yesterday, Mahathir told reporters in Kuala Lumpur that Forest City units would no longer be sold to foreigners.

"One thing is certain, that city that is going to be built cannot be sold to foreigners. We are not going to give visas for people to come and live here.

"Our objection is because it was built for foreigners, not built for Malaysians. Most Malaysians are unable to buy those flats," he had said.

In a statement later, CGPV cast doubt on media reports about Mahathir's remark, saying his comment "may have been taken out of context". - Mkini