China's capital controls won't affect Country Garden's Forest City project, says Johor Mentri Besar

Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin said Forest City is meant to cater to the global market and not Chinese buyers alone.
Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin said Forest City is meant to cater to the global market and not Chinese buyers alone.PHOTO: ST FILE

JOHOR BARU (THE STAR/ASIA NEWS NETWORK) - Country Garden's ongoing Forest City mega-development in Johor will not be affected by the Chinese government's efforts to stop capital flight into offshore investments.

Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin said this was because Forest City, which would have four manmade islands in Johor's Gelang Patah upon completion, is meant to cater to the global market and not Chinese buyers alone.

He said the China-based developer has been marketing the project in other parts of the world, like Australia, the Middle East and Europe, in order to attract buyers.

 

"The Chinese government's policy is not targeted towards Forest City, it affects all Chinese developers which have projects outside the country," he said on Saturday.

Forest City, a mixed development project, is expected to contribute some RM66 billion (S$21 billion) in tax revenue to the country over the next 20 years.

It was reported that Country Garden Holdings had closed all sales centres in mainland China for Forest City amid Beijing's intensified crackdown on capital flight.