Daily Management Review

‘$100 Billion’ Forest City Project In Malaysia To Undergo Review


08/28/2018


A reviewing committee to find the “best way forward” for the Forest City project, while the announcement from the Malaysian Prime Minister leaves the Chinese Developer’s share tumbling down.



On Tuesday, 28 August 2018, Malaysia informed that a review committee will look into the “Forest City” project of real estate worth “$100 billion”. This announcement came one day later, followed by the Prime Minister, Mahathir Mohamad’s statement of no foreigners would allowed to get visas for living there.
 
The comments of Mahathir proved to be a setback for “Country Garden Holdings Co Ltd”, a Chinese developer, which attempts to boost uncertain demand for the Malaysian project located in the southern tip of the country. In the words of the “Housing and Local Government Minister”, Zuraida Kamaruddin:
“We will form a committee to study and review whatever terms that were agreed to previously”.
“We will engage with all the agencies involved and also the developer. Then we see what is the best way forward”.
 
Country Garden is the “largest” developer of properties when seen by sales. However, the company saw a drop of 3.5% in its share early on Tuesday due to the announcement made by Mahathir. The project of Forest City is targeted to shelter “700,000 people” on the “reclaimed land near Singapore”. However, the project has seen uncertainty since the coalition of Mahathir garnered “a shock victory at a May general election”.
 
The above mentioned projects along with its like ones, wherein Chinese money formed the backbone of the mega projects’ infrastructure, turned into fodder for the election campaign of Mahathir, as he leveraged his position by appealing to a “public displeasure over a perceived over-dependence on Chinese capital”.
 
While, Reuters reported:
“Country Garden Pacificview Sdn Bhd, a joint venture between Country Garden and the Johor state government to develop Forest City, said in a statement on Monday that Mahathir’s comments ‘may have been taken out of context’”.
 
According to the company, Mahathir’s response was positive during a meeting with the Country Garden Chairman, Yeung Kwok Keung, which took place about “two weeks ago”. Further, the company added it has not failed to comply with any “necessary regulations in developing the project”.
 
 
References:
reuters.com







Science & Technology

China is developing technology to capture greenhouse gases

IEA: The growth of renewable energy is slowing

Google introduces new smartphone and beta Android Q

SpaceX’s Dragon Crew Capsule Test Met With Anomaly

New Security Study Finds Millions Use 123456 As Password For Email Accounts

The Devastating Panama Disease Could Spell Extinction For Bananas

Walmart to hire 4 thousand robot cleaners

Samsung Galaxy Fold: Expensive but fragile

USA and South Korea launch the first commercial 5G networks

Deliveries of AR/VR devices to grow by 54% in 2019

World Politics

World & Politics

Theresa May to resign on June 7

The Earth Is ‘Not On Track’ To Tackle Global Warming: The U.N. Secretary General

Is Finland’s aging population turning the country into Japan?

The United States will impose new duties on Chinese goods on Friday

Jyrki Katainen: EU is not a milk cow

Oil lobby and the planet's future

Trump files a lawsuit against Deutsche Bank and Capital One

Trump Urged Abe To Influence Japanese Auto Firm To Produce More Vehicles In The U.S.