Forest City has benefited state, federal govts, says Johor MB

ISKANDAR PUTERI: The Johor government yesterday denied the inaccurate statements and allegations made about the Forest City project.

Menteri Besar Datuk Osman Sapian said the state government had received an explanation from project developer Country Garden Pacificview Sdn Bhd (CGPV).

“We need to clarify these statements so that there’s no confusion among the public.

“We are not siding with any party but we need to clarify so that investors would not be worried about investing in Johor. We always welcome foreign investors,” said Osman.

He said one statement claimed that the project did not contribute to the state and Malaysia.

“The state government has received RM630 million from the Forest City project, consisting of dividends and other payments, such as land premium and taxes.

“The Federal Government has received RM83 million, including RM13 million in corporate taxes, from the project,” said Osman.

He said CGPV’s parent company, Country Garden Holdings, had also contributed RM309 million to the Federal Government in taxes, including RM250 million in corporate tax.

“CGPV has invested RM11.5 billion in the project as at July. It has also awarded contracts worth RM1.4 billion to 150 local companies while workers in the project contributed RM51 million in personal income taxes.”

On the statement that 700,000 foreigners, mostly from China, would be living in Forest City once it was completed, Osman said it was not accurate.

“The figure is actually the total population in Forest City, including locals, tourists, students and professionals.”

He said the allegation that all transactions involving Forest City were conducted overseas and no money had flowed into Malaysia was also inaccurate.

“All transactions involving the project, including the sales and purchase agreement, have to be done in Malaysia and are governed by local laws, including the Housing Development (Control and Licensing) Act.

“CGPV has contributed RM2 billion to the Housing Development Authority fund, which is under the purview of the Housing and Local Government Ministry.

“This fund can’t be withdrawn until the project is completed and has been checked and audited,” said Osman, adding that the state government believed Malaysia had a comprehensive legal system to protect rights of investors, including property buyers.

“We will continue to cooperate with the Federal Government and authorities. We will also ensure CGPV will continue to clarify any confusion through discussions and meetings.

“We are confident in the Federal Government’s ability to be fair in protecting foreign companies doing business in Malaysia.”