Casino Resort Gives Hope To Help Forest City

Forest City is a grand-scale development located in Johor, Malaysia. Its stakeholders include figures in the Malaysian economic and political landscape, including the nation’s current king.

However, despite the impressive scale of the project, Forest City has been struggling to achieve its intended success. Locally, it is commonly referred to as a ‘ghost city’. This label reflects its current state, characterized by a vast expanse of high-rise condominiums on reclaimed land, but with a significant lack of occupancy and vibrancy.

In an effort to breathe new life into this massive development, discussions are underway to explore the possibility of establishing a casino within Forest City. This idea was initiated and is being driven by the development company behind Forest City, China-based Country Garden Holdings Co.

The proposal of a casino within Forest City has been met with mixed reactions. In a predominantly Muslim nation like Malaysia, where gambling is culturally discouraged, the introduction of a casino raises questions about its acceptance by the local populace.

However, from an economic standpoint, a casino could serve as a significant revenue stream for the government. This is evidenced by the substantial annual contributions made by the country’s sole existing casino, which amounted to RM5 billion prior to the pandemic.

The discussions regarding the potential casino have involved significant figures in Malaysia’s business and political landscape. Prime Minister Datuk Seri Anwar Ibrahim has reportedly engaged in talks with Berjaya Corporation founder Tan Sri Vincent Tan and Genting Group’s Tan Sri Lim Kok Thay.

These discussions also involve representation from Yang di-Pertuan Agong Sultan Ibrahim Sultan Iskandar, a major shareholder in the Forest City project. The involvement of such prominent figures underscores the significant implications of these discussions.

The establishment of a casino within Forest City could potentially transform the development’s fortunes. For one, it could inject new life into the project by attracting a host of visitors and investors, thereby reducing the vacancy rates of the condominium units.

Moreover, given Forest City’s strategic location near Singapore, a casino could attract visitors from the neighbouring nation. Singaporean residents currently have to pay a considerable levy to visit the casinos in their own country, making a Forest City casino an attractive alternative.

For Country Garden Holdings Co., the potential inclusion of a casino within Forest City comes at a critical time. The company is currently grappling with China’s real estate crisis, which has put a strain on its financial stability.

The company’s recent announcement of missing a deadline for reporting annual results has led to the suspension of its shares from trading in Hong Kong. This highlights the urgency and significance of seeking new avenues for growth and stability, making the prospect of a casino in Forest City particularly appealing.