JOHOR BARU • The multibillion-dollar Forest City project in Gelang Patah can be turned into an iconic development project in the region, says a leading property consultant firm in Malaysia's southern region.

KGV International Property Consultants director Samuel Tan Wee Cheng hopes that the project will be completed as planned. "Do not turn the project into a white elephant as it is not good for Iskandar Malaysia and the country," he said.

Prime Minister Mahathir Mohamad said on Monday that foreigners will be barred from buying residential units at Forest City. Malaysia's Federal Housing Ministry said the next day that it has been tasked with studying the residential agreements in the project.

The US$100 billion (S$137 billion) Forest City is meant to eventually have 700,000 residents.

Mr Tan said looking at the scale of the project, which is located just across from Singapore, the authorities could take the initiative to promote it as Johor's new tourist attraction. Forest City entails the reclamation and development of a large area in the Strait of Johor and the creation of four man-made islands.

"Johor's economic prospects, especially tourism and services sectors, will benefit directly and indirectly from the project in terms of tourist dollars," he said.

At the same time, he added, the state government should be more careful when approving projects by foreign developers, including incentives given to them which local developers did not enjoy.

Johor Consumers Movement Association chairman Md Salleh Sadijo said the government made the right move by banning foreigners from purchasing residential properties there. "They will come and stay only for a few months and their units will be left unoccupied for the rest of the year," he said.

THE STAR/ASIA NEWS NETWORK