Johor MB rebuts Putrajaya's 'invest in China, get free Forest City condo' claim

Johor Menteri Besar Osman Sapian has rebutted Putrajaya's claim of a scheme granting investors a free condominium unit in Forest City if they invested in China.

Osman, who had met with Forest City developer Country Garden Pacificvew Sdn Bhd (CGPV), told a press conference at his office in Johor Bharu that the claim was untrue.

"There are people who claim that if you buy a property in China, you can get one free in Malaysia. I would like to clarify that this statement is untrue, because CGPV is a separate entity, with separate operations in China and abroad.

"CGPV's business is accompanied by (local) financial statements, which prevent them from doing such things.  CGPV also informed me that it also coordinates with Bank Negara and other related agencies, such as the Finance Ministry and the International Trade and Industry Ministry," he said.

Guangdong-based Country Garden Holdings owns 66 percent of CGPV through Malaysian subsidiaries, while the remaining 34 percent is owned by the Johor government, state ruler Sultan Ibrahim Sultan Iskandar, as well as his associates.

Last week, Economic Affairs Minister Mohamed Azmin Ali said that among Putrajaya's gripes with the Forest City project was an alleged scheme that offered free condominium units in Forest City if they invested in China.

He also claimed that these transactions are done offshore, which did not benefit the Malaysian economy.

'No offshore transactions'

Osman did not name Azmin directly, but denied the claim that the transactions were done offshore.

"CGPV has denied this. Any purchase is subjected to the Housing Development (Control and Licensing) Act 1966, where buyers must sign the sales and purchase agreement as set out in the schedule.

"Any transaction must be paid in Malaysia in 13 stages, be it by cash or loan," he said.

To date, Osman said, there is RM2 billion in the trust account overseen by the Housing Development Authority for the Forest City project. 

The menteri besar also addressed claims that some 700,000 foreigners would be living in Forest City, pointing out that this was only a projection when all phases of the project are completed in 30 years.

He also stressed that not all of these would be foreigners.

"It's only been five years, there are 25 years more. Perhaps the policy will change to prioritise the interest of locals," he said.

Prime Minister Dr Mahathir Mohamad had previously criticised the project, claiming that it would be dominated by foreigners as prices would be too prohibitive for locals. 

Osman said he hoped that the federal government would act fairly in dealing with foreign investors.

"The state government believes in the federal government's ability to act fairly in protecting foreign companies that conduct business in Malaysia, particularly in Johor," he said.

The menteri besar also stressed that the Forest City project had contributed RM630 million in land premium and other fees to the state government, created 9,242 construction jobs, and provided employment to 1,200 locals.

He added that the company had hired 88 fresh graduates, and are looking to recruit up to 600 by 2020. -Mkini