Forest City, the Malaysian island megaproject backed by Chinese investment, is facing an uncertain future due to the financial struggles of Chinese property giant Country Garden. The US$100 billion artificial city, which has been built in the middle of palm oil trees, remains largely vacant despite being aimed at middle-class Chinese buyers. The project, which includes condos, roads and shops, has faced numerous challenges, including low sales, Chinese currency controls, a pandemic shutdown and public anger at China’s growing influence in Malaysia.
Country Garden, the project developer, is currently dealing with a US$196 billion debt. Despite posting a record loss for the first half of 2023, it has received approval from creditors to extend a key bond repayment deadline, avoiding a potential default. However, another deadline is approaching for…
