Scams and Illegal Activities Challenge Forest City’s Revival Efforts

Forest City faces setbacks as scams and illegal businesses threaten its revival. New challenges emerge in the development's bid to shed 'ghost town' image.

Editorial Desk

September 27, 2026 One Min Read

POLICY WIRE — Iskandar Puteri, Malaysia — Forest City, a once-ambitious megaproject on Malaysia’s southwestern coast, is grappling with new challenges as allegations of scams and illicit operations resurface, complicating its efforts to rebrand from a ‘ghost town’ to a thriving investment hub.

A recent visit to the development revealed an unmarked shoplot where customers used e-wallets to place bets on slot-style games, raising concerns about unregulated gambling. This activity, along with other questionable ventures, has sparked renewed scrutiny as authorities attempt to restore confidence in the area.

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In July, Johor police conducted raids targeting online scam operations, arresting 335 individuals, many of whom were foreign nationals. The incidents have led to heightened concerns among residents and property owners, with some reporting increased vigilance and security measures. Despite these challenges, the Special Financial Zone (SFZ) remains a focal point for attracting investment, though the property market continues to face hurdles, including weak transaction volumes and declining prices.

Reporting by Policy-Wire (PW)

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Editorial Desk

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