Malaysia projects operating normally, says Country Garden

China's biggest property developer upbeat as its Johor project gets 'special zone' status

- Hazlin Hassan

ISKANDAR PUTERI, Johor - China's biggest property developer Country Garden on Monday said its five projects in Malaysia are operating normally and with strong sales performance, amid concerns that the group is facing a debt crisis.

Its projects in Malaysia include the mammoth US$100 billion (S$136 billion) Forest City in Johor, which received a boost last week when Prime Minister Anwar Ibrahim said the government has designated the project as "a special financial zone" to spur the economy in southern Johor.

"To date, the overall operation of the region is safe and stable," the developer's Malaysia and Singapore unit said in a statement. "Our company's projects in Malaysia are operating normally and the sales performance is strong."

Country Garden Holdings faced total liabilities of US$194 billion at the end of 2022, with worries about the outlook of Forest City and its other Malaysian projects.

Earlier in August, Country Garden missed two coupon payments totalling US$22.5 million.

In Johor, its projects are Forest City, Country Garden Danga Bay and Central Park. The company also has projects in Lake City@KL North and Diamond City in the Klang Valley.

Datuk Seri Anwar, on a visit to Johor last Friday, said incentives offered for the Forest City special zone would include multiple entry visas, fast-track entry for those working in Singapore and a flat income tax rate of 15 per cent for knowledge workers.

"I am confident this will attract many companies which are experiencing high operating costs in Singapore," Mr Anwar said, adding that housing and education costs are also high in the Republic.