Malaysian prime minister bans foreign buyers from $100bn Forest City project

Malaysian Prime Minister Mahathir Mohamad said foreigners would not be allowed to buy property at Country Garden’s $100 billion (Dh367bn) project, or be granted visas to live there.

The Forest City project near Singapore had targeted buyers from China for its mixed-residential development, as well as investors from Indonesia, Thailand and Dubai. Malaysia’s My Second Home programme allows wealthy foreigners to live in the South East Asian nation on a longstay visa, with Chinese nationals being the largest group of participants.

“Our objection is because it was built for foreigners, not meant for Malaysians,” Mr Mahathir said to reporters. “Most Malaysians are unable to buy those flats.”

His comments are inconsistent with what he said during an August 16 meeting with Country Garden’s founding chairman Yeung Kwok Keung, the company said.

Mr Mahathir said he welcomed foreign investments that can benefit Malaysia’s economic growth and job creation, according to the company.

Since coming to power in May, the prime minister has taken a firm stance against foreign investments that he says don’t benefit Malaysians. He indefinitely deferred the $20bn East Coast Rail Link project and a Trans-Sabah gas pipeline project backed by Chinese state companies after his visit to Beijing last week. But he still struck a conciliatory tone, saying he can’t blame the Chinese side for unfavourable contracts by the previous Malaysian government.

Mr Mahathir did not say how he would put a stop to foreigners buying the property at Forest City or how far-reaching the ban on visa approvals would be.

Forest City has complied with all laws and regulations and has the necessary approvals to sell to foreign purchasers, Country Garden said in its response. The company is seeking clarifications with the Prime Minister’s Office regarding the press conference, it said.