EQS Newswire: The Forest City Special Financial Zone: Forest City Malaysia 2026: The Truth Behind the "Ghost City" Label

EQS Newswire / 23/04/2026 / 15:40 UTC+8

What government gazettes, rental figures, and third-party rankings reveal about the Johor mega-development in 2026

The "ghost city" label applied to Forest City Malaysia is factually outdated. Here is what the current data shows.

Few labels in Southeast Asian real estate have proven as persistent-or as polarising-as the "ghost city" tag attached to Forest City, the US$100 billion mega-development rising from land in Johor, Malaysia. International media, from the BBC to viral YouTube documentaries, broadcast images of empty boulevards and unoccupied towers, cementing a narrative that has followed the project for years.

Conditions have demonstrably shifted. Since the Malaysian government gazetted the Forest City Special Financial Zone (SFZ) in 2024, tying the development to the broader Johor-Singapore Special Economic Zone (JSSEZ), key metrics have shifted materially.

Businesses have been moving in. The city now has close to 20,000 residents. Forest City Golf Resort's "Classic Course" has ranked in the "Top 100 Golf Courses in Asia" for seven consecutive years (2020-2026), and the "Legacy Course," designed by golf legend Jack Nicklaus and his son Jack Nicklaus II, ranked 49th in the "2024-2025 Asia-Pacific Top 100 Golf Courses" list. Moreover, new amenities spanning beach access, mangrove ecotours, sea fishing, and licensed firework stalls, are drawing a widening visitor base.

Early coverage captured a moment. But current data, onsite observation, and independent rankings show sustained activity. This article traces how the "ghost city" label took hold, examines what has changed, and assesses what the data reveals about Forest City today.

Where Did the "Ghost City" Label Come From?

The label did not appear out of nowhere.

It reflected real conditions at a particular point in Forest City's project lifecycle, shaped by policy shifts, pandemic disruption, and the timing of international media coverage.

• 2014 to 2018: Forest City launched with a focus on Chinese mainland buyers and highly visible cross-border marketing. Construction was in its early phases, with residential towers and core amenities coming online in stages.
• 2018 to 2020: Then-Prime Minister Mahathir Mohamad tightened rules on foreign property purchases, cooling Chinese demand and affecting the original sales cadence.
• 2020 to 2022: COVID-19 border closures cut off key buyer and visitor markets. Occupancy remained low while construction continued. International outlets filmed during this lull, capturing a large amount of specific footage.
• 2023 to 2024: Prime Minister Anwar Ibrahim backed Forest City as part of a national SFZ strategy tied to the JSSEZ. Policy measures formalised a strategic pivot from a primarily residential development toward a mixed-use hub for financial services, family offices, and incentives for skilled professionals. This marked the turning point.

The question, then, is what Forest City looks like when assessed against current data rather than footage from 2020.

How is Forest City now?

As of 2026, Forest City functions as an active, occupied community with verifiable resident and visitor figures. The development comprises 26,000 completed units, around 80% sold, supporting close to 20,000 residents from over 20 nationalities. Commercial activity has expanded, with over 100 retail outlets in operation spread across a 30,000 m2 shopping mall in the Finance Centre and Fisherman Wharf Commercial Street on the coast. Daily footfall is visible along the 4 km developed coastline, where operators run mangrove eco-tours and sea fishing excursions. Golf remains a major draw, with a growing number of golfers visiting Forest City's highly acclaimed courses in recent years.

Forest City Malaysia today. The development's residential towers - home to more than 15,000 residents from over 20 nationalities - are fully operational, 2 km from Singapore by straight line.

Key activity metrics from 2024-2026 indicate a materially different picture from media coverage from the 2018-2022 period:

Metric	2020-2022 (Media Coverage Period)	2024-2026 (Current)
Residents	Low occupancy during construction	Around 20,000 from 20+ countries
Office rental rate	RM1.50/sq ft	RM5.50/sq ft (+267%)
Office occupancy	-	59% (50,000 sq ft launched)
Tourism facilities	Non-operational	Golf resort, hotels, mangrove tours, sea fishing, 4 km coastline, 8 km cycling path, wedding venue, water park, shopping mall, commercial street, and more
International schools	-	International school (in CAT Global Schools network) offering education from kindergarten to high school
Tourist arrivals	Near zero (COVID closures)	Over 3 million tourists per year

The development once labelled a "ghost town" now reports over RM790 million in cumulative tax contributions to the Malaysian government, contributed RM53 million to Corporate Social Responsibilities (CSR) programmes, formed partnerships with more than 190 local enterprises, and directed over RM140 million to environmental initiatives such as mangrove and seagrass conservation.

What Changed? The Special Financial Zone Effect

In 2024, the Malaysian government designated Forest City as a SFZ within the JSSEZ, shifting the project from a developer-led residential project to a government-anchored economic strategy with bilateral backing. The designation set out clear incentives:

• 0% tax on qualifying family office investment income for an initial 10-year period, extendable by a further 10 years for eligible entities.
• 5% corporate tax for qualifying institutions in finance, technology, and other select industries for 20 years.
• 15% personal income tax for skilled knowledge workers.
• Minimum assets under management (AUM) of RM30 million for family office eligibility.

These terms changed behaviour. On the private side, six family offices have secured approval, reporting a combined RM400 million in assets. The government's target for the SFZ is RM2 billion in AUM by end-2026. Office leasing followed. Asking rents rose from RM1.50 to RM5.50 per sq ft, a 267% increase, and the first 50,000 sq ft of commercial space has reached 59% occupancy. These figures suggest market-driven pricing rather than promotional positioning.

The bilateral context also matters. Singapore's formal endorsement of the JSSEZ framework extends policy credibility beyond Malaysia's domestic political cycle, positioning Forest City as a cross-border asset in the early stages of valuation normalisation. For investors accustomed to assessing sovereign risk, the joint commitment from both governments represents a meaningful de-risking signal.

Who Actually Lives in Forest City Today?

Demographic data as of 2026 indicates a more diverse residential base than the project's early China-focused marketing might suggest. More than 15,000 residents from over 20 nationalities now call Forest City home, making it a mixed international community rather than a single-market enclave.

Daily infrastructure has matured to support settled living. Retail and F&B outlets are equipped to serve resident and visitor needs daily, covering everything from groceries and dining to medical services and furniture. For most residents, evenings no longer require the 25-minute drive to Johor Bahru's commercial centres.

Education has also emerged as a primary draw for families. Forest City International School, established in 2018 as the Malaysia flagship campus of CATS Global Schools, is a renowned American style K12 boarding school that offers education from kindergarten through high school. Over half of teaching staff is recruited from overseas, all of them have over five years of teaching experience, and 60% have master's or doctoral degrees. The Class of 2025 at Forest City International School has achieved outstanding results, securing admissions from 17 world-renowned institutions. These include University College London, Nanyang Technological University, the University of Hong Kong, the University of Toronto, the University of British Columbia, Seoul National University, Korea University, Yonsei University, the University of Tokyo, University of the Arts London, and Savannah College of Art and Design, a metric that speaks to educational outcomes rather than enrolment marketing alone.

The city's rhythm is visible in regular festivals, sports meets, and cultural gatherings that serve both expatriate and Malaysian families. In a Channel News Asia (CNA) Insider video feature about Forest City, interviewee Nizam noted: "There were many bad reviews about Forest City. So, I think now people know and they've seen for themselves how the condition actually is. It's very crowded."

Much of this consolidation follows the SFZ designation, which has translated population growth into a more settled pattern of community life.

A community event at Forest City's beachfront. The development hosts more than 100 international events and tournaments annually, including the Challenge Malaysia triathlon scheduled for June 2026.

What is There Actually to Do in Forest City?

Beyond policy mechanics, Forest City now operates functioning tourism and leisure infrastructure.

Facilities and activities now in operation:

• Golf resort: The "Classic Course" has ranked in the "Top 100 Golf Courses in Asia" for seven consecutive years (2020-2026), and the "Legacy Course," designed by golf legend Jack Nicklaus and his son Jack Nicklaus II, was ranked 49th in the "2024-2025 Asia-Pacific Top 100 Golf Courses" list by China's largest golf platform, Cloud Golf.
• Hotels: Two five-star properties, the Forest City Marina Hotel and Forest City Golf Hotel, offer full resort amenities for short stays and extended visits, supporting both leisure tourism and business travel tied to the SFZ.
• Mangrove tours: Guided mangrove tours operate within the adjoining 2.86 million m² green corridor, accessible via registered boat operators. The ecosystem hosts more than 400 documented plant and animal species. Recreational sea fishing is available along the waterfront and offshore.
• Sea fishing: Recreational sea- fishing along the waterfront and offshore for ocean lovers seeking wave-breaking fun and deep-sea adventure. Flexible two- or four-person packages with selected meals are available.
• Coastline: Approximately 4 km of developed beachfront includes public access, a waterfront promenade, and recreational facilities, including a dedicated wedding venue.
• Proximity to Singapore: Forest City sits roughly 2 km from Singapore in a straight line-approximately 40 minutes by car to Singapore's CBD-making it comfortable for day trips and weekend visits from the city-state.
• Events calendar: More than 100 international events and tournaments run annually across golf, leisure, and cultural categories. The Challenge Malaysia triathlon is scheduled for June 2026, adding to a growing roster of marquee fixtures.

For visitors, the most visible change is practical access to the environment. Forest City sets aside 2.86 million m² of green space, with more than 400 documented plant and animal species. It has also earned more than 40 international awards across urban planning, sustainability, and hospitality, with many of its buildings now LEED-certified. These elements shape a credible on-the-ground itinerary.

Forest City Golf Resort. The Classic Course has ranked in Asia's Top 100 Golf Courses for seven consecutive years (2020-2026); the Legacy Course, designed by Jack Nicklaus, placed 49th in the 2024-2025 Asia-Pacific Top 100. The resort hosts more than 100 international tournaments annually.

Why is the Malaysian Government Invested in Making This Work?

Forest City's trajectory reflects an increasingly visible alignment between public policy and private capital, a convergence that has translated political rhetoric into legislative action and physical infrastructure.

• Institutional presence signals intent on the ground: The Malaysia Investment Facilitation Centre (IMFC) has established operations in Forest City, with more than 10 government agencies co-located there, indicating active use rather than abandonment.
• Reported returns to the state are quantifiable: Over RM790 million in taxes paid, 10,000 jobs created, partnerships with over 190 local enterprises, RM53 million put into CSR initiatives, and RM140 million directed towards environmental work. These figures suggest the public-private model is producing an auditable dividend.
• Connectivity spending is consistent with the policy stance: The Johor Bahru-Singapore Rapid Transit System (RTS) Link is scheduled for completion in late 2026. The Kuala Lumpur-Singapore High-Speed Rail continues to progress through development phases. A sea-based LRT system proposed by the Sultan of Johor aims to alleviate chronic checkpoint congestion at the causeway.

Conclusion

The "ghost city" label captured a window from 2018 to 2022, when construction dominated, borders were shut, and policy cooled demand.

That window has closed.

For prospective visitors, day trips and weekend stays are now practical options. For prospective residents, liveability can be assessed against current infrastructure rather than dated impressions. For investors, six approved family offices operating under enacted SFZ rules represent early-stage validation of the policy framework.

The 2026 picture is measurably different: a designated SFZ with enacted legislation, institutional tenants in place, office space leasing at market rates, close to 20,000 residents across 26,000 completed homes, and a tourism and events ecosystem built around highly acclaimed golf courses and 4 km of developed coastline.

The evidence is on the record. Government gazettes, third-party rankings, tax remittance data, occupancy figures, and current on-the-ground conditions offer a more complete picture than media footage from the construction phase.

For stakeholders navigating Southeast Asian investment opportunities, or the Johor-Singapore corridor more specifically, the gap between the "ghost city" legacy and 2026's fiscal reality is now empirically vast. While SFZ benchmarks and rising lease yields provide a valid analytical foundation, a site visit remains the ultimate form of due diligence. Seeing the city's current operations firsthand is the best way to reconcile past headlines with the SFZ's tangible economic momentum.

23/04/2026 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.

Media archive at www.todayir.com
View original content: EQS News