Much has happened since this case study was written in mid-2017. This epilogue summarizes the most significant developments for the Forest City project and its developer, Country Garden.
Construction of the first development phase has advanced at a rapid pace. A series of partially-completed high-rise apartment towers have risen out of the sand, while a new school, affiliated with a private school in Minnesota, U.S.A., is open to students. Some of the project’s first occupants have already moved in, although their homes are surrounded by an enormous construction site.
At the national scale, Malaysia has witnessed historic political upheaval in the past year. On May 9, 2018, Pakatan Harapan, led by 93-year-old former prime minister Mahathir Mohamad, became the first opposition coalition to unseat the ruling Barisan Nasional coalition in Malaysia’s 61 years as an independent nation. An August 20, 2018 New York Times article describes how one of the consequences of the election is a more strained relationship between the Malaysian government and China. On the campaign trail and following the election, Prime Minister Mahathir has treated the Forest City project as a symbol of Chinese encroachment and control over Malaysia, threatening to prevent foreigner property ownership on the reclaimed islands. It is uncertain at this stage how serious this threat is, or what the implications will be for Country Garden’s development and sales strategy. The Chinese ambassador to Malaysia has expressed optimism that China and Malaysia will find a mutually beneficial solution.
Questions remain concerning Country Garden’s priorities to achieve its sustainability-focused branding following the DEIA process. The developer is in the process of constructing a luxury eighteen-hole golf course on the mainland to the northwest of the Forest City site. This project has required destruction of a considerable area of mangroves within the Sungai Pulai National Park, which was gazetted by the Malaysian government as a RAMSAR site of international importance as recently as 2003. Country Garden claims it plans to plant new mangrove buffers around the golf course and the reclaimed Forest City islands, but it is unclear how this will be achieved technically. In addition, according to local mangrove scientists, any small artificial mangroves will have far lower ecological value than the mature mangroves that have already been destroyed. Given the expense of reclamation, it is also financially impractical to set aside significant areas of reclaimed land for mangroves.
There is also evidence that Country Garden has sought to correct environmental damages caused by during the early phases of reclamation and construction. The portion of the Merambong seagrass bed that was smothered during initial land reclamation activities appears to be recovering well. Local observers report that the grass began growing back soon after the sand causeway was removed and that all local animal species, including dugongs, present before the construction have returned, though it will take time for their populations to return to their previous levels.
Perhaps learning from earlier experience and in an attempt to be seen as a partner, Country Garden has continued to support to local groups. For instance, the developer sponsors leadership training programs at local schools, free Mandarin lessons for local children, and various community groups and events. They have also provided supplemental income for local fishers and provided training for working in the tourism industry.
Country Garden has also made efforts to employ more locals, instead of Chinese nationals. While subcontractors still employ high levels of foreign construction workers and most security guards and cleaning staff are foreigners, Forest City now employs many more Malaysian sales staff, though most come from Kuala Lumpur and Penang rather then Johor. Many local Johoreans do work as service industry staff and skilled laborers in Forest City.
While Country Garden pushes ahead with Forest City, the project’s future remains uncertain. The developments of the past year demonstrate the extent to which layers of political, economic, technical, and environmental factors make large international investments such as Forest City high-risk propositions. They also validate the benefits to international investors of building genuine and mutually supportive relationships with all affected local groups. A strong bank of political goodwill can be invaluable in steering a project through the inevitable challenges that will arise over the course of a long and risky development cycle.