Forest City scaled down 30%

Remember the controversy surrounding the Forest City project in Iskandar? Many reports said that the whole project may be scaled down 70%. It has been finally revealed that green light has been given for the project to continue BUT it has to be scaled down by at least 30%. From the initial 1,978ha, it is now down to 1,368.05ha. Ok, while 610ha is indeed a huge piece of land but 1,368.05ha which is the remaining piece is definitely not small. This project was reported to have a total of four man-made islands with a gross development value (GDV) of RM600 billion over 30 years. It’s not a typo. It is RM600 billion and not RM60 billion. In other words, an average of RM20 billion per year! With the reduction, the GDV should be reduced accordingly. Of course, the plan can always be restructured to make the land use even more efficient and GDV may not change a lot. Will have to wait for the developer to call for a press conference.
From the beginning, no one would think that the project would be cancelled. It is a joint-venture between the state government’s subsidiary company Kumpulan Prasarana Rakyat Johor and China real estate developer Country Garden Holdings Ltd. However, there has been many murmurs and complaints that the project is affecting many local fishermen as well as the effects on the marine life in Gelang Patah. The highest concern was finally raised when Singapore sent a note to Putrajaya. With the current cordial relationship, the current decision seems to be a win-win situation to all, hopefully. 🙂
The reclamation works has been stopped for over 6 months. The developer has better restart work soon to catch up on lost time. The developer gave an assurance that conditions imposed would be adhered to. As soon as they start, an updated Environmental Management Plan together with a frequent third-party audit would be submitted as per requested by DOE.
I still think it would be best to rope in another partner which can help to attract more investors from Singapore. Let’s wait and see what’s next for such a huge development overlooking our neighbour. I think the higher floors would be able to have a spectacular view of the night lights from Singapore. Haha. Of course, many of the buyers would definitely be Singaporeans too. No rush, just reclaim first. Launching now, irregardless of how aggressive just would not cut it but as they say, once the rain stops, the sun would be out and the flowers would start to bloom. The question is, when would this ‘rain’ stop or would the ‘rain’ turn into a storm? Happy reading.
written on 15 Jan 2015
Next suggested article: Iskandar – Largest reclamation project in Malaysia?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *