Forest City to benefit port

The New Straits Times Report

Datuk Md Othman Yusof says the development of Forest City will benefit the people of Johor. Pic by Mohd Azren Jamaludin

by Chuah Bee Kim

JOHOR BARU: THE RM600 billion Forest City development project will not affect the country’s biggest transhipment terminal, Port of Tanjung Pelepas (PTP).

Kumpulan Prasarana Rakyat Johor (KPRJ) executive vice-chairman Datuk Md Othman Yusof said the project would instead complement the port.

When the 49ha man-made island called Forest City is completed, investors would be able to use the port facilities, he said.

“The project will bring more of a positive impact than a negative one to the people of Johor.”

Othman said the reclamation and construction of a showroom to showcase the properties in Forest City were scheduled to be completed in 18 months.

However, he said, the stop-work order since June 15 had halted the company’s marketing strategy, and KPRJ was worried that investors’ confidence would be affected by the directive.

The order was issued by the Department of Environment and KPRJ was hoping authorities would allow the developer, Country Garden Pacific View (CGPV), to resume work as soon as possible.

“We want the project to be completed in the shortest time possible to avoid the looming 10-year global recession cycle.”

Othman said Singapore had not protested against the reclamation but had merely submitted a diplomatic note seeking clarification.

He said everything was done according to ITLOS (International Tribunal for the Law of the Sea) and no Environmental Impact Assessment was required as the project was less than 50ha.

Othman said KPRJ had reduced the size of the development, despite having paid a premium for the land amounting to more than RM300 million.

The original plan was to reclaim about 2,000ha, but it has now been reduced to about 1,600ha.

“The size reduction means we have given way to PTP, using only 53ha of the land, so that the port can proceed with its expansion plans to build three more berths,” he said, refuting claims that the reclamation would cause waters there to become shallow.

Guangdong-based property developer Country Garden Holdings has a 60 per cent stake and Planet Esplanade Sdn Bhd has a 40 per cent stake in Forest City. Of this, KPRJ has a 20 per cent share in Esplanade.

Othman said the Esplanade share was an indirect investment.

As for its direct investment in the mammoth project, KPRJ will receive eight per cent in returns.

“KPRJ did not contribute land as it is all reclaimed from the sea.

“This eight per cent will bring a huge return to the people of Johor. The state government will re-direct that money to build more low-cost houses for the people.”