The case of Forest City reveals the multi-scale nature of the consultation and approval processes that face developers or large-scale projects in Malaysia (and elsewhere). Due to the Sultan’s personal stake in the project, Forest City was initially approved at the state level (where most land use decisions are made) even as the project skirted national environmental regulations. Eventually, the developer was forced to address both national and even international concerns. Authorities at each level often had conflicting priorities. On multiple occasions, the Sultan has complained that the national government should not be interfering with Johor’s economic development efforts, criticizing the DEIA process as a “weapon” to stop development. The Department of Environment in Johor failed to intervene in a timely way, putting the environment at risk.

Local stakeholders, including coastal residents, fishermen, and environmentalists played an important role in drawing media attention to the project. Widespread political pressure eventually compelled Johor to establish a compensation fund for local fishermen. Singapore’s intervention ultimately forced Country Garden to give attention to national environmental regulations in Malaysia.

The Forest City project underscores the importance of consultation and clear communication with local stakeholders. Had Country Garden fully understood the importance of the seagrass beds and mangrove forests, they could have taken steps to protect and preserve them in the context of their land reclamation efforts. Country Garden could have avoided the substantial costs associated with the stop work order and the complete redesign of their project. They would likely have earned the support rather than the enmity of a large portion of the population in the area.

It appears that Country Garden has adopted green design primarily as a marketing and branding strategy. Committing to sustainability is what will set Country Garden apart from its competition in the long term. There is a clear tension between short term development strategies driven by the need to generate financial returns and long term sustainability plans that attract committed residents (rather than out-of-country buyers seeking to sell their units as soon as they can make a profit). Furthermore, Country Garden’s marketing strategy targeting non-Malaysian buyers became a national campaign issue for the opposition party, with media reports highlighting a growing feud between former Prime Minister Mahathir Mohamad and the Sultan of Johor.

More recently, Forest City was impacted by China’s crackdown on capital flight. According to a March 24, 2017 New York Times article, Country Garden closed its showrooms in mainland China in response to new regulations limiting money flowing out of the country. Country Garden is shifting its strategy to attract buyers from elsewhere. Middle income mainland Chinese buyers were among the main targets for Forest City. The new regulations have sown doubt and discord for some Chinese investors, leaving some with buyer’s remorse. These new setbacks have created an uncertain future for Forest City.