Prime Minister Tun Dr Mahathir Mohamad has confirmed that Chinese nationals can indeed purchase residential units at Forest City but they would not be issued visas to live there.
“They can buy the property, but we would not give them visas to come and live here,” he said at the 60th-anniversary ceremony of the National Art Gallery on Tuesday (Sept 4).
Dr Mahathir had last week caused much concern and confusion when he declared that foreigners will not be allowed to buy properties at the US$100 billion Forest City project in Johor.
“One thing is certain, that city that is going to be built cannot be sold to foreigners.
“We are not going to give visas for people to come and live here,” he reportedly told a press conference, adding that the government’s objection was because the project was aimed at attracting foreigners, and not Malaysians.
However, a day later, the Prime Minister’s Office (PMO) clarified that foreigners are free to buy homes here, but are subject to certain conditions.
It said any such purchases would not automatically grant the buyers residency, but foreigners can apply through the Malaysia My Second Home (MM2H) government programme.
The Johor state government also weighed in on the matter, with Mentri Besar Datuk Osman Sapian stating that “Johor does not discriminate or segregate foreign investors or property buyers according to regions or countries of origin.”
However, Osman pointed out that they were subject to rules and regulations when buying houses in the state, including within Iskandar Malaysia’s economic growth corridor.
“The policies are already in place and clearly indicate they are only allowed to buy houses priced RM1 million or above,” he said.
The most ambitious project in Johor’s Iskandar economic zone, Forest City is still at an early stage of development and reclamation work is currently ongoing.
Four artificial islands will be created from the waters of the Johor Straits, covering a total surface of 14 square kilometres and bringing Malaysia’s shoreline closer to Singapore.
More than 700,000 foreigners, who will be the project’s residents, are expected by 2050.
Earlier report: Aug 28, Forest City Foreign Sale Ban Not Yet Decided