Forest City, a massive planned reclamation project in Malaysia initially designed to house 700 ribu penduduk, has evolved into a cautionary tale of urban development challenges and real estate vacancies, according to reporting by the BBC. Built as an eco-friendly smart metropolis by Chinese property developer Country Garden and Danga 88—a private firm controlled by Malaysian Sultan Ibrahim Iskandar—the multi-billion-dollar coastal development aimed to attract high-net-worth buyers with luxury hotels, golf courses, and marina-style apartments.
From Eco-City Ambitions to Project Stalls
The ambitious timeline for Forest City hit early regulatory roadblocks just six months after construction began, when the Malaysian government temporarily halted the project over environmental degradation concerns, according to the BBC. Despite the regulatory friction, developers continued aggressive marketing campaigns for residential units. Financial pressures intensified during the COVID-19 pandemic. According to project reports covered by the BBC, developers faced liabilities reaching roughly sebesar Rp 2.875 triliun, while simultaneous banking restrictions choked off capital access and threatened total project suspension.
The Ghost City Phenomenon and Low Occupancy
Pandemic travel restrictions and economic uncertainty caused an exodus of residents, leaving large portions of the resort-style towers completely vacant and earning the development the “ghost city” moniker. Post-pandemic metrics indicate that while some buyers have returned, occupancy remains a fraction of original projections. According to recent assessments, the population hovers at roughly 1 persen dari total unit yang tersedia. While nighttime lighting suggests activity, entire residential towers remain largely unoccupied.
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Attracting Organized Crime Syndicates
Malaysian law enforcement officials revealed that by mid-July 2026, several units within Forest City had been repurposed as operational hubs for cryptocurrency scam syndicates. According to police statements, these illicit networks targeted international victims through sophisticated investment and romance scams.
Investigative details show that the criminal operations spanned 32 specific locations across 27 apartments, occupying five distinct floors of a residential tower alongside five separate bungalows. Commenting on the vulnerabilities of under-populated master-planned developments, urban analyst Wojcik stated, “Forest City reflects a condition that has been the target of organized crime for years – a premier location marketed as a prestigious, luxurious, and well-planned smart city, but which has never come close to fulfilling that vision,” as reported by the BBC.
Frequently Asked Questions
Who developed the Forest City project in Malaysia?
The project is a joint venture between Country Garden, a major Chinese property developer, and Danga 88, a private company controlled by Malaysian Sultan Ibrahim Iskandar, according to the BBC.
Why was Forest City labeled a ghost city?
The development earned the label due to severe financial debt, strict banking loan limits, pandemic-related population outflows, and extremely low occupancy rates where only about 1% of units are inhabited.
What illegal activities were discovered in Forest City?
According to Malaysian police, criminal syndicates utilized apartments and bungalows within the development in mid-July 2026 to run international cryptocurrency and romance investment scams.
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