China's Country Garden's creation of the "Forest City" in Malaysia raises questions about the ambitious project's purpose and the impact of China's property crisis beyond its borders.
Turning Forest City to Ghost City
Country Garden unveiled Forest City in 2016 as a $100 billion mega-project under the Belt and Road Initiative. This plan aimed to construct an eco-friendly metropolis complete with a golf course, water park, offices, bars, and restaurants, to accommodate about one million people.
However, eight years later, Forest City serves as a stark reminder that the repercussions of China's property crisis extend beyond its borders. Interesting Engineering revealed that only 15% of the massive project has been completed, with occupancy levels just over a meager 1%.
Former resident Nazmi Hanafiah, an IT engineer, now describes the once-promising venture as a desolate "ghost town." The feelings of desolation and the urgent need to escape were evident in his decision to disregard his deposit and financial concerns.
Forest City, characterized by its unsettling ambiance, remote location, and lack of amenities, has earned the local nickname "Ghost City." The vacant beaches, closed shops, and abandoned construction sites all contribute to a haunting and isolated landscape.
What Happened?
Conceived as an idyllic haven for the burgeoning Chinese middle class, Forest City aimed to entice them with the prospect of a second home overseas, whether as a vacation retreat or an investment property available for rent.
Yet, the project has grappled with formidable challenges. Recent reports from the South China Morning Post painted a gloomy picture, revealing that only a sparse number of lights illuminate the project's extensive array of high-rise towers by evening.
The desolation is further emphasized by closed shops adorned with notices demanding overdue payments, providing an uninviting view into their neglected interiors. This grim scene deters even the most adventurous souls seeking a place in the labeled "Ghost City."
Forest City's tribulations extend beyond the physical realm, entangled in public resistance to China's expanding influence in Malaysia. The project faced accusations of being exclusively tailored for foreigners by previous administrations, while the disruptive force of the coronavirus pandemic compounded its challenges.
Adding to the woes are the financial struggles of Country Garden, burdened with debts nearing $200 billion, casting a looming shadow over the development. Despite these adversities, the real estate developer remains "optimistic" in its endeavors.
Malaysian Prime Minister Anwar Ibrahim has attempted to salvage the project by establishing a special financial zone, complete with incentives such as special tax rates. However, Forest City finds itself in an uphill battle. The unresolved financial woes of Country Garden cast an uncertain fate over the future of Forest City.
During the initial half of 2023, Country Garden faced a substantial setback, with reported losses reaching an astonishing $6.7 billion. This alarming financial downturn has raised apprehensions among critics and analysts regarding the timely completion of Forest City.
In a further blow to the company's financial standing, BBC reported that Country Garden defaulted on its offshore debt obligations in October, prompting the sale of a significant 366-hectare (904-acre) housing project in Australia.
Related Article : Earth Lost Switzerland-Sized Forest Area in 2022, New Report Reveals
