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Disappointment among investors as Malaysia’s Forest City Project struggles to match futuristic vision

Malaysia’s Forest City project, promising an eco-futuristic city, disappoints Singaporean investors after years of stagnation.

Concerns mount as China’s Country Garden, the developer, flirts with default, casting doubt on the project’s completion and leaving a potential “ghost town” in its wake.

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MALAYSIA: The vision of a futuristic, eco-friendly city showcased in extravagant marketing materials for Malaysia’s Forest City project still eludes investors, particularly Singaporeans.

Despite purchasing apartments four years ago, many individuals are disheartened by the lack of development in the surrounding region, according to a Hong Kong media platform.

Lured by lower prices than in Singapore and retirement prospects, one Singapore buyer paid RM700,000 (US$153,000) in 2019 for her 635-square-foot unit in Johor Bahru.

But construction lagged far behind the glitzy scale model at the sales gallery, which showed a bustling city of residential towers, yachts, and shopping complexes.

“All around are pockets of empty, underutilised space. But the 3D model showed so much more,” said the 48-year-old finance professional.

Her concerns grew with the recent news that Forest City’s China-based developer Country Garden edged towards default, raising fears that the remainder of the project could be left an unfinished “ghost town”.

“It’s worrying. Can they still finish what they planned?” she asked.

Property analysts agree that her concerns are well-founded, considering Country Garden’s actions to sell off projects in other locations due to a significant drop in its share price.

Debt-stricken developer casts shadow over Malaysia’s mega project as default looms

The debt-stricken firm was China’s largest developer before 2023.

But it recently suspended bond trading to facilitate restructuring negotiations, after missing payments. It now has a grace period until reportedly early September before formal default.

While concentrated in mainland China, Country Garden has subsidiaries running three major projects in Johor state, including the US$100 billion Forest City development.

The four artificial island project was launched in 2015 across 20 square kilometres. As of August 2023, only 15% was actually completed.

The company stated this month it remains committed to the masterplan until 2025. But residents fear parent firm issues may derail completion, hitting property values in the largely vacant complexes.

“It seems very unlikely the whole project will be finished now. I’m worried my apartment’s value will drop further,” said the buyer, who partly bought for investment.

Units currently range from RM400,000 to RM4.8 million. But prices have already fallen, while tenants pay less due to missing amenities.

In Australia, there are reports indicating that Country Garden, burdened by debt, is in the process of selling its land assets.

This has raised worries that sluggish sales in Malaysia might also lead to divestment, potentially causing construction to come to a halt.

At Country Garden’s other Johor project, Danga Bay, one unfinished foundation has become a mosquito breeding ground, upsetting residents.

The developer indicated it may opt not to complete the final residential block, citing less crowding. But residents lament the eyesore and health hazard left behind.

Some Danga Bay owners also await strata titles as proof of ownership, fearing they may not materialise if the firm liquidates.

A lawyer suggests that a potential default in China could necessitate the sale of assets, which might include Country Garden’s Malaysian subsidiaries.

Residents lacking titles may then have to verify ownership claims, potentially paying liquidator fees.

If the subsidiary undergoes liquidation, individuals without titles might need to demonstrate their unit purchase, likely leading to the payment of thousands of ringgit to liquidators.

The developer also has a third project in Johor Bahru called Central Park, which is still under development. The project is scheduled to be completed by next year and is valued at RM4.6 billion (US$990 million).

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China

Tragic stabbing of Japanese boy in Shenzhen sparks concerns over Sino-Japanese relations

A 10-year-old Japanese boy died after being stabbed in Shenzhen on 18 September, raising fears about strained Sino-Japanese relations. The attacker, a 44-year-old man, was apprehended. Japanese Prime Minister Fumio Kishida condemned the act, urging Beijing for swift information. This incident follows previous attacks on Japanese nationals, heightening concerns for their safety in China.

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CHINA: A 10-year-old boy, a dual citizen of Japan and China, succumbed to injuries after being stabbed while on his way to school in Shenzhen on Wednesday (18 September) morning.

The incident has raised alarms within the Japanese community in China and could further strain already tense Sino-Japanese relations.

According to the Chinese Foreign Ministry, the boy was attacked in the abdomen near a Japanese school and was transported to a hospital for emergency treatment.

Despite efforts to save him, he died of his wounds early Thursday.

The assailant, a 44-year-old man, was arrested by police near the scene.

The motivations behind the attack remain unclear, and it is uncertain whether the boy was specifically targeted due to his nationality.

A local Japanese businessman expressed concerns for the safety of the community, advising vigilance and caution when speaking Japanese in public spaces.

Japanese Prime Minister Fumio Kishida condemned the stabbing as an “extremely despicable crime” and called for prompt information sharing from Beijing regarding the investigation.

The Chinese Foreign Ministry, represented by spokesman Lin Jian, expressed condolences and emphasized the commitment to protecting foreign nationals in China.

Lin noted that such incidents could occur in any country and downplayed the potential impact on bilateral exchanges.

Eyewitness accounts described the chaotic scene, with the boy receiving immediate medical attention from passersby.

His mother was present during the attack.

This incident follows a similar knife attack in Suzhou in June, which left a Japanese mother and child injured.

In response to both attacks, Japanese officials have reiterated their demand for enhanced safety measures for their nationals in China.

Wednesday also marked the 93rd anniversary of a significant historical event—Japan’s bombing of a railroad track near Shenyang, which contributed to the Manchurian Incident and subsequent occupation of northeastern China during World War II.

In light of this, Japan had previously requested the Chinese government to bolster security at Japanese schools.

In mourning, Japan’s Ambassador to China, Kenji Kanasugi, ordered the national flag at the embassy to be flown at half-staff and planned to visit Shenzhen to meet the victim’s family.

The Japanese consulate in Guangzhou reported that local government officials had also extended their condolences.

Community responses in Shenzhen reflected a mix of shock and sorrow, with residents leaving flowers at the entrance of the Japanese school.

One local expressed shame over the incident as a Chinese national, while another voiced concern over the implications for Sino-Japanese relations.

As diplomatic tensions have already been heightened by issues such as espionage allegations against Japanese nationals and trade disputes, including a ban on Japanese seafood following the Fukushima disaster, this tragic event may exacerbate existing challenges.

The Japanese Chamber of Commerce and Industry in China has urged both governments to ensure the safety of Japanese citizens and seek clarity on the incident.

The investigation into the stabbing continues, with officials pledging to hold the perpetrator accountable under Chinese law.

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Animals

Panda knocks down zookeeper in Chongqing zoo, both unharmed

A panda named Ding Ding knocked down a zookeeper at Chongqing Zoo on 19 September, sparking concern after a video surfaced online. Both the caretaker and the panda were unharmed, and the zoo has continued normal operations.

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CHINA: On Thursday (19 September), a social media user shared a video showing a giant panda named Ding Ding (丁丁) knocking down a zookeeper at Chongqing Zoo.

In response to inquiries, zoo staff confirmed that both the zookeeper and the 9-year-old panda were unharmed and that Ding Ding continues to be exhibited as usual.

The video, circulated on Chinese social media platform Weibo, shows a zookeeper noticing that Ding Ding was attempting to escape through a partially open gate. The zookeeper rushed to close the gate, which produced a loud noise.

However, the gate wasn’t fully secured, and Ding Ding can be seen trying to open it again.

Visitors alerted the zookeeper, who rushed back to shut the gate.

This action seemingly agitated the panda, who then turned its attention toward the zookeeper.

During a brief chase, Ding Ding knocked down the zookeeper.

In the footage, some visitors can be heard advising others to stay calm and avoid shouting.

This is not the first such incident at the zoo.

In April 2024, another panda knocked over another zookeeper.

The zoo’s management reported that on 23 April, at around 2:00 PM, a zookeeper was guiding two pandas, Yu Ke (渝可) and Yu Ai (渝爱), to a feeding area when they chased and knocked the zookeeper down.

Fortunately, neither the zookeeper nor the pandas were injured.

Following that event, the zoo held a safety meeting and implemented stricter feeding protocols to prevent similar incidents.

Chongqing Zoo is home to 23 giant pandas.

According to Chongqing Daily, the panda enclosure, which has undergone three rounds of expansion and renovation, now covers nearly 20,000 square meters and is one of the earliest panda breeding centers in China.

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