Forest City, Malaysia: A &100 Billion Ghost Town
Executive Summary
Forest City is a massive $100 billion development project in Malaysia, originally planned for one million inhabitants but currently home to only a few thousand residents. Built by Country Garden (China's largest development firm), the project features pristine infrastructure, maintained landscaping, and fully built facilities—yet remains virtually empty. The city has accumulated roughly $190 billion in outstanding debts and is often described as a ghost town, despite sitting directly across from Singapore, one of the world's wealthiest and most densely populated cities.
Journey Overview
Location: Johor, Malaysia (directly across from Singapore)
Exploration Duration: 50 hours
Primary Objective: Explore five main areas and meet local residents
Current Status: Partially developed with minimal occupancy
First Impressions
Arrival from Singapore
The contrast between the two locations is striking. Within minutes of leaving Singapore, one of the most vibrant cities on Earth, the explorers arrived at Forest City's expansive but empty towers. From Singapore's waterfront, Forest City appears as just another massive urban development, but up close, the reality is dramatically different.
Initial Observations:
- Pitch-black windows in most buildings
- Minimal signs of residential activity
- Heavy security presence throughout
- Well-maintained infrastructure despite low occupancy
- Eerie silence in what should be a bustling city
Local Legend: The Ghost Stories
The driver shared unsettling stories from residents living in the buildings:
- Most occupied units are on the 20th floor or below
- Residents report hearing furniture moving in empty floors above
- Sounds of chairs and tables being dragged occur nightly
- Despite the disturbances, residents stay due to cheap rental prices
- Local belief attributes the sounds to spirits or ghosts
Accommodation Experience
The Building
Location: One of the more prominent residential towers
Occupancy: Only four security guards present at check-in
Floor Status: Sole occupants on their entire floor
View: Stunning overlook of empty beaches with Singapore visible across the water
Meeting the Neighbor: Stefan
One of the few encounters with an actual resident revealed an interesting perspective:
- Resident named Stefan (also named Kevin in conversation)
- Lives in the building short-term
- Rents the unit
- Notable quote: "It's really quite deserted. That's exactly how I like it."
- Appreciates the solitude and quiet environment
Nighttime Observations
From their accommodation, the explorers noted:
- Not a single apartment light visible in their building
- Only exterior tower lights illuminated
- Every restaurant in the complex completely empty
- Heavy security presence but unclear what they're protecting
- Sleepless first night due to unsettling atmosphere
Day One: Comprehensive Exploration
Transportation System
Forest City features a continuous shuttle bus system circling the island, allowing visitors to hop on and off at various neighborhoods. This became the primary means of exploration.
The Villa District
Statistics:
- 223 brand-new villas total
- Less than 10% occupied
- Of occupied villas, very few have full-time residents
Observations:
- Perfectly landscaped grounds maintained as if fully inhabited
- Unopened packages visible at empty properties (including what appeared to be a dishwasher)
- Complete neighborhoods awaiting families that never arrived
- Pristine condition despite minimal usage
Reflections:
- Billions invested in infrastructure with no population
- Uncertainty about the future—will it be repurposed or remain empty?
- Question of whether anyone believes the city will fill up
Commercial Areas
Current State:
- Most shops closed or never opened
- Perfect landscaping maintenance continues
- Workers from various countries present
- Almost zero actual local residents
- Heavy security presence at every corner
Confusing Dynamics:
- More security guards than residents
- International workers maintaining the city but unclear who they're working for
- Filming restrictions enforced by security
- Feeling of constant surveillance
Meeting Alan: The Retiree's Perspective
Profile
Name: Alan
Status: Singaporean retiree living in Forest City
Residence Duration: Several years
Living Situation: Uses Forest City as a vacation home
Lifestyle: "Lone ranger" with no neighbors
Alan's Philosophy
Why Forest City?
- Too expensive to live in Singapore
- Finds Singaporeans unfriendly compared to his own nature
- Enjoys the uncrowded, peaceful environment
- Perfect retirement location for his preferences
Daily Activities:
- Fishing
- Walking in parks
- Swimming in the sea
- Complete solitude
Life Perspective:
- Content and relaxed in retirement
- Embraces both good and bad experiences
- Views challenges as learning opportunities
- Quote: "I enjoy the bad more than the good. A chance to learn."
Alan's Assessment
On the Food: "Frankly, all the food sucks here."
On Revival Prospects: He believes the city is "slowly reviving" despite current challenges.
On Lifestyle: Perfect environment for retirees seeking peace without crowds.
The Tour
Alan provided a comprehensive tour of Forest City, including:
- Various eatery locations (though quality is poor)
- Beach areas
- Park facilities
- Commercial hubs
He bought drinks for the explorers and shared his broken sports car story, explaining he was simply enjoying retirement and recent road trips.
Historical Context: Why Forest City Exists
China's Real Estate Boom (1990s-2010s)
Reform Era:
- Communist China reformed land use rights
- Citizens could now own homes
- Millions moved into cities
- Local governments sold land rights to developers
- Property became primary investment vehicle for Chinese households
- Major source of government revenue
Country Garden's Strategy
Company: China's largest development firm
Forest City Vision: Investment properties abroad for Chinese citizens at cheaper prices than domestic options
Development Model:
- Sold homes before building them
- Used pre-sale money to buy more land
- Accumulated significant debt
- Investors rushed in as prices soared
- Market transformed into massive bubble
The Collapse
Timeline of Decline:
2017: Chinese government cracked down on foreign investing, making Forest City expansion difficult
Subsequent Years: Government restrictions on credit access for developers
2020: COVID-19 pandemic struck
Result: Forest City stuck in limbo
Current Reality
Development Status:
- Only one of four planned islands partially developed
- Estimated 9,000 residents (far below one million goal)
- Legal obligations require complete maintenance
- City remains eerily pristine with minimal population
- Perfectly inhabitable homes sitting empty
Day Two: The Unexpected Discovery
The Marina Hotel
While shuttling across the island, the explorers noticed the marina hotel appeared to have actual occupants—a stark contrast to the rest of Forest City.
Network School: A New Society
Discovery: An experimental community living program operating within Forest City
Organization Type:
- Digital communities transitioning to physical long-term communities
- Current population: 100 people committed to one-year stays
- Global meritocracy experiment
- Potential path to new nation status
Special Economic Zone Status
Legal Framework:
- Agreement with Malaysian and Singaporean governments
- Operates as special economic zone
- Large tax breaks available
- Financial incentives for businesses
- Legal framework allows independent operation
Target Audience:
- Entrepreneurs from around the world
- Talented individuals who struggle to access Silicon Valley
- 99% of world countries can enter Malaysia without visa
- Only three countries excluded
The Vision: Balaji Srinivasan's Network State
Founder's Philosophy:
- Western institutions (US government, dollar, SEC, FDA) reaching end of life
- New opt-in communities as alternative
- Communities welcoming people from around the world
- Platform for global talent regardless of connections or initial resources
Forest City's Role:
- Utilize abandoned facilities across the island
- Grow experimental community
- Potential path to independence
- New passport possibility for long-term residents
- Could become its own state
Leadership: Donovan's Perspective
On Reactions: "When you do anything new, average reaction tends to be one of confusion. That's a very normal reaction."
On Timeline: When asked when the city might be full: "A few years probably."
On Purpose: "Can we build a new thing that's going to fill up the buildings that are already here that people didn't show up for?"
Community Features
Current Operations:
- Tech accelerator programs
- Educational initiatives
- Entrepreneurial support
- Global networking opportunities
- Semi-independent governance structure
Unexpected Connection: Multiple Yes Theory subscribers were living in the Network School community, demonstrating its reach within certain demographics.
Infrastructure Assessment
Positive Aspects
Physical Condition:
- Pristine landscaping throughout
- Well-maintained buildings
- Functional facilities
- Beautiful beaches
- Volleyball courts and recreational areas
- Complete commercial buildouts
- Everything needed for thriving community
Accessibility:
- Shuttle system connecting all areas
- Close proximity to Singapore
- Modern amenities
- Clean environment
Concerning Elements
Atmosphere:
- Feeling of surveillance
- Heavy security restrictions on filming
- Unclear purpose of security presence
- Eerie emptiness despite perfect condition
- Ghost stories from residents
- Isolation despite infrastructure
Economic Questions:
- $190 billion in outstanding debts
- Unclear financial sustainability
- Uncertain future prospects
- Tarnished reputation affecting new business partnerships
Facility Highlights
Residential Options
- High-rise apartment towers
- Villa neighborhoods (223 units)
- Various floor plans available
- Affordable rental prices
Recreational Amenities
- Private beaches
- Swimming facilities
- Parks and green spaces
- Volleyball courts
- Marina with boat access
- Fishing areas
Commercial Infrastructure
- Restaurant spaces (mostly empty)
- Shopping areas (largely closed)
- Hotel facilities
- Community hubs
- Transportation network
The Future Question
Potential Outcomes
Scenario 1: Continued Decline
- Buildings deteriorate over time
- Maintenance costs exceed revenue
- Complete abandonment
- Wasted investment and resources
Scenario 2: Repurposing
- Network School model expands
- New communities adopt the infrastructure
- Alternative uses discovered
- Gradual population growth
Scenario 3: Revival
- Economic conditions change
- Chinese investment returns
- Malaysian development strategies shift
- Original vision eventually realized
Network School Impact
The presence of Network School represents the first significant attempt to utilize Forest City's infrastructure for an alternative purpose. Their success or failure may determine whether other groups attempt similar initiatives.
Key Question: Will abandoned spaces like Forest City inevitably find new uses, or will they remain monuments to failed ambitions?
Final Evening with Alan
Farewell Celebration
The explorers returned to spend their final evening with Alan, the retiree who embodied the unexpected positives of Forest City life.
Setting: Restaurant with Alan
Order: Large bottle (Alan's "normal size")
Food: Substantial sushi order
Atmosphere: Relaxed, celebratory
Alan's Toast Philosophy: "Drink and drink and drink and drink."
When warned about getting in trouble: "I have very good lawyers, okay?"
This final scene captured the spirit of those who've found their place in Forest City—individuals who see opportunity in isolation and peace in emptiness.
Key Takeaways
For Potential Residents
Advantages:
- Extreme affordability
- Peace and quiet
- Beautiful maintained environment
- Proximity to Singapore
- Modern facilities
- Low competition for resources
Disadvantages:
- Limited social interaction
- Poor food options
- Eerie atmosphere
- Ghost stories and disturbances
- Uncertain long-term viability
- Heavy surveillance
For Investors and Observers
Lessons from Forest City:
- Speculative real estate bubbles have global consequences
- Infrastructure without population serves no purpose
- Government policy can dramatically impact international projects
- Abandoned spaces may find unexpected new uses
- Maintenance costs continue regardless of occupancy
The Broader Question
Forest City represents a crucial question about 21st-century development: How do we handle the massive infrastructure projects that fail to attract their intended populations? The answer may lie in flexibility, creativity, and willingness to reimagine original purposes.
Conclusion
Forest City stands as both a warning and an opportunity. A warning about the dangers of speculative real estate development and the fragility of international investment projects. An opportunity for creative thinkers to reimagine what abandoned infrastructure can become.
The presence of Network School suggests that Forest City's story isn't over—it's simply entering a new chapter. Whether that chapter leads to revival, continued decline, or something entirely unexpected remains to be seen.
For now, Forest City exists in a strange limbo: perfectly maintained, virtually empty, and waiting for whatever future decides to claim it. The pristine beaches, empty villas, and silent towers all ask the same question: What comes next?
Only time will tell if this $100 billion ghost town becomes a cautionary tale or an unexpected success story.
Contact Points
Alan - Retiree resident, unofficial tour guide, embodiment of Forest City's appeal to those seeking solitude
Network School - Experimental community seeking to build new society within Forest City's infrastructure
Country Garden - Original developer, currently managing massive debts while maintaining legal obligations