Malaysia’s Department of Environment has set a development limit on Country Gardens Holdings’ planned Forest City project in Johor Strait, reported the media.
Under the new limits, Country Gardens is only allowed to develop less than 405 hectares or 25 percent of its 1,600-hectare project, following complaints from the Singapore government and locals over reclamation works within the narrow waterway between the two countries.
The company was informed of the new limits verbally.
“The DOE has decided to limit the project to the first phase and wait for a few years to see the impact before looking at future phases,” said a source as quoted in the media.
“The DOE is expected to send an official letter about its decision soon to relevant parties,” added the source.
A joint venture between Country Gardens and a Johor development company, the Forest City project involved massive reclamation off Tuas over the next 30 years. Measuring three times the size of Singapore’s Ang Mo Kio estate, the man-made island will offer luxury homes within the Johor Strait.
Singapore had raised the issue of reclamation works affecting its coastal waters. The reclamation works also affected Malaysia’s nearby key transhipment hub, the Port of Tanjung Pelepas.
Notably, evidence to the effects of the reclamation works was presented at the last Malaysia-Singapore Joint Commission on Environment (MSJCE) which met last month.
Meanwhile, the government of Johor said last September that it wanted Country Gardens to comply with the Environmental Impact Assessment. According to Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin, it is important to ensure that issues like the environment are given full attention while regulations are adhered to.
Country Gardens Holdings, which is the parent company of the developers, is the seventh-largest property developer in China with a market capitalisation of HK$63 billion (S$10.8 billion) as of 31 December 2014.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
