By South China Morning Post | Created at 2026-08-03 09:01:58 | Updated at 2026-08-03 09:47:58
47 minutes ago
Malaysia’s attempt to recast Forest City from a China-backed “ghost city” into a hub for global wealth and mobile talent is facing an early governance test after police last week uncovered two alleged online scam syndicates operating across 32 luxury homes.
The raids have sharpened questions over whether oversight is keeping pace with Putrajaya’s drive to revive the waterfront project beside Singapore.
Johor police chief Ab Rahaman Arsad said 335 people were detained during coordinated raids on July 15, comprising 309 Chinese nationals, 19 Indonesians, four Myanmar nationals and three Malaysians.
The suspects, aged between 20 and 58, were found in 27 flats and five bungalows allegedly used to run bogus cryptocurrency investment and romance scams, as well as schemes impersonating law firms, targeting victims overseas.
Police were working with Interpol to trace the alleged masterminds, English-daily The Star reported, quoting Ab Rahaman. He said the flats had been booked under a company name and the bungalows under individual names, while some suspects had previously worked at scam centres overseas.
Forest City is Malaysia’s first special financial zone and sits within the wider Johor-Singapore Special Economic Zone framework. The government is offering tax incentives and a dedicated visa track to attract family offices and high-value workers.
