Malaysia Govt Mulling Over Lower Foreign Ownership Quota for Forest City: Report
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The Malaysian government is studying the feasibility of reducing foreign ownership in Johor's Forest City development, Housing and Local Government Minister Zuraida Kamaruddin was quoted by media reports as saying.
Chinese buyers account for most of the Forest City units sold so far.
The state is trying to ease federal government fears of an influx of Chinese national buyers becoming residents there after buying into the project. Earlier, the Johor government reportedly proposed reserving 30 per cent of properties in Forest City for Malaysian buyers.
"For now, our key concern regarding this project is the government policy allowing 70 per cent ownership by foreigners. I feel this issue needs to be studied and reviewed to ensure our people's rights are not sidelined," Datuk Zuraida was quoted as saying on Thursday (Sept 6).
The minister's comments imply that that threshold might be too low for the federal government.
Uncertainty has plagued the US$100 billion (S$137 billion) property project, being developed by Chinese company Country Garden and the Johor state, since Prime Minister Mahathir Mohamad said last week foreigners would be barred from buying properties at the project.