Malaysia’s Prime Minister, Anwar Ibrahim, recently engaged in discussions with prominent business leaders Lim Kok Thay of Genting Group and Vincent Tan of Berjaya Corp regarding the potential issuance of a second casino license for the troubled US$100 billion Forest City development in Johor. The initiative aims to breathe life into the struggling township, plagued by challenges such as waning Chinese investment interest and the impact of the COVID-19 pandemic.
Background of Forest City
Forest City, situated near the Singapore border, was conceived as a premier residential hub, primarily targeting Chinese investors. However, its ambitious vision has encountered setbacks, with reports characterizing it as a “ghost town.” Factors contributing to its struggles include Beijing’s restrictions on overseas investments by its citizens and the timing of the global pandemic, which dampened international property investment.
Proposed Solution: Introducing a Casino
In a bid to revitalize Forest City, the idea of introducing a casino has emerged as a potential solution. Prime Minister Anwar Ibrahim, along with key stakeholders, including Lim Kok Thay and Vincent Tan, deliberated on this proposition during a recent meeting held at the development site. The inclusion of a casino is seen as a strategic move to inject vitality into the township and garner support from various quarters, including Malaysia’s King Ibrahim Iskander, who holds a personal stake in the Forest City joint venture.
Support and Expertise
The prospect of a casino venture is bolstered by the endorsement of the project’s master developer, Country Garden Holdings, a Chinese-owned entity. Additionally, Genting Group’s decades-long expertise in the casino industry, owing to its ownership of Malaysia’s only existing casino license for Resorts World Genting, lends credibility and invaluable insight to the proposed endeavor. Furthermore, Vincent Tan’s expressed interest in obtaining a casino license aligns with Berjaya Corp’s diversified portfolio, which includes real estate development and the operation of renowned brands such as Starbucks and 7-Eleven across Malaysia.
Royal Patronage and Investment
The involvement of Malaysia’s royal family adds another dimension to the casino proposition. With King Ibrahim Iskander holding a significant stake in Forest City, his support for the casino initiative could sway decisions in its favor. Moreover, the possibility of inviting other members of the royal family to invest in the casino development underscores the potential for heightened interest and financial backing from influential quarters.
The proposal for a second casino license in Malaysia, specifically for the Forest City development, represents a strategic effort to reinvigorate a struggling township. Backed by the endorsement of key stakeholders, including government officials, business leaders, and the royal family, the initiative holds promise for revitalizing economic activity and attracting both local and international interest to the region. As discussions progress, the implementation of such a venture could signal a new chapter in the evolution of Forest City, transforming it from a dormant project into a thriving destination.