A US$100 billion mega project on the southwestern edge of Peninsular Malaysia, Forest City comprises high-rise apartments, landed homes and villas interspersed with commercial shoplots.
In July, Johor police arrested 335 people in raids on alleged online scam operations there.
The police seized computers and mobile phones and said the syndicates were involved in schemes including fraudulent cryptocurrency investments and romance scams targeting victims overseas.
That same month, the authorities ordered Network School, a community catering to technology entrepreneurs and digital nomads, to cease operations after finding breaches of licensing conditions and the approved use of its premises.
Residents, property owners and experts told CNA the episodes are a fresh setback for Forest City as it tries to rehabilitate its image and attract investments.
The development has been trying to reinvent itself as an investment destination, anchored by its status as a Special Financial Zone (SFZ).
The SFZ is expected to surpass its RM2 billion investment target this year, after attracting more than 250 enquiries from prospective investors including financial institutions, family offices and business services firms.
Criminologist P Sundramoorthy told CNA the scam operations and episodes like Network School have “reputational consequences” for the development.
“It can affect property values, business confidence, tourism, investment decisions and the willingness of people to live and work there,” added Sundramoorthy, who is with Universiti Sains Malaysia.
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