Foreigners welcome in Forest City: Johor Menteri Besar
State Menteri Besar says foreigners can buy homes in the project
ISKANDAR PUTERI The Menteri Besar of Johor said yesterday that foreigners are welcome to buy property in Chinese developer Country Garden Pacificview's controversial US$100 billion (S$138 billion) Forest City project in Malaysia.
Forest City is a 30-year project that provides jobs for Malaysians, Menteri Besar Osman Sapian said, in comments that appeared to contradict Prime Minister Mahathir Mohamad's vow last week to prevent foreigners from buying housing in the project.
"The Johor government believes that Malaysia has comprehensive laws that protect the rights of foreign investors and companies, including purchasing property," he told a briefing.
"The Johor government believes the federal government is able to be fair in protecting foreign companies that run operations in Malaysia."
The comments appear unlikely to ease confusion surrounding the project following Dr Mahathir's pledge last week.
Chinese buyers account for about two-thirds of Forest City units sold so far. A fifth are from Malaysia and the rest from other countries.
"Country Garden Pacificview is always providing economic benefits from the project to local agencies," Mr Osman said, adding the project will create more than 9,000 jobs in the construction sector.
Since becoming prime minister, Dr Mahathir has put the brakes on a number of China-backed projects, including the US$20 billion East Coast Rail Link project.
ILL-INFORMED
Mr Osman also said certain parties are ill-informed and making claims without basis.
Mr Osman said it was, for example, incorrect to report that the project did not contribute to growth in Johor and the country.
He added that the federal government had received RM309 million (S$103 million) in taxes, including corporate taxes, fees and levy.
Mr Osman said Country Garden had invested about RM11.5 billion in the project in Gelang Patah and awarded contracts worth RM1.4 billion to 150 local contractors.
He also rubbished claims made by certain parties that Chinese buyers buying a house from Country Garden Holdings in China would get a free house at Forest City.
He said Country Garden Pacificview and Country Garden Holdings have different accounts. The former handles buyers for Forest City and the latter for projects in China.
- REUTERS, THE STAR
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