Forest City, the US$100 billion mega-development on Malaysia’s southern coast, was once hailed as a “dream paradise for all mankind.” A decade on, fewer than 5,000 of its planned 700,000 residents call it home. But the empty towers and dust-filled apartments have found a new purpose: as operational bases for transnational scam syndicates.
In mid-July, Malaysian police raided two alleged scam hubs spread across 32 premises in Forest City, arresting 335 individuals and seizing assets worth about one million ringgit (US$245,000). The operations, run from 27 apartments and five bungalows, were cryptocurrency investment and love scams targeting victims abroad. Among those detained were 309 Chinese nationals, 19 Indonesians, three Malaysians, and four Myanmar nationals. Johor police chief Ab Rahaman Arsad confirmed that Interpol has been roped in to track the mastermind.
“The reality is that many of these organisations now resemble multinational corporations more than a traditional organised crime network,” says John Wojcik, an analyst at TRM Labs. “They have dedicated recruitment teams, IT departments, money-laundering specialists and infrastructure.”
Why Forest City Became a Magnet for Scammers
Forest City’s unique combination of factors made it a honeypot for organised crime. The project, spearheaded by Chinese developer Country Garden and backed by Malaysian Sultan Ibrahim Iskandar, was envisioned as a special financial zone. But the Covid-19 pandemic, China’s property slump, and restricted capital outflows left the development largely empty.
“Forest City reflects the conditions organised crime have been targeting for years,” Wojcik explains. “Modern infrastructure, large numbers of vacant properties, and international connectivity all wrapped around the veneer of legitimate economic activity.”
Local residents confirm the open secret. Kevin, a tenant working in property sales, says the company still claims 23,000 residents, but the real number is under 5,000. “That’s the reason scammers have chosen Forest City,” he says. “They have their own privacy. Nobody comes here.”
A Regional Shift in Scam Operations
The Forest City raids are part of a broader regional trend. Experts believe the syndicates were displaced from Cambodia, where authorities have intensified crackdowns on industrial-scale scam compounds. Since late last year, an estimated 300,000 people have left Cambodia as raids intensified.
Unlike the walled compounds in Sihanoukville or Myanmar’s borderlands, Forest City’s operations appear almost white-collar. They sit wall-to-wall with unsuspecting neighbours, blending into the residential fabric. “When scam syndicates can embed themselves behind seemingly legitimate businesses, they become more difficult to detect and disrupt,” Wojcik notes.
Malaysia has seen similar operations before. Throughout 2022, authorities raided scam centres in Johor, Penang, and Kuala Lumpur. But the scale and sophistication of the Forest City hubs signal a professionalisation of the industry. In Telegram groups, career scammers now post detailed resumes, outlining their experience in fraudulent activities.
What This Means for Regional Governance
The Forest City case underscores the challenges ASEAN faces in regulating cross-border crime. The development’s semi-abandoned status, combined with its international connectivity and legal ambiguity, creates a governance vacuum that syndicates exploit.
For Singapore, Forest City’s neighbour just across the Johor Strait, the implications are clear. The island’s model of efficient governance and strict regulation stands in contrast to the porous enforcement in parts of Malaysia. Yet the scam industry’s ability to adapt and relocate means no jurisdiction is immune.
“Any signs of large-scale re-emergence deserve close attention,” Wojcik warns. As Forest City slowly attracts new residents—lights now flicker in one in five condos, up from one in 20—the question is whether authorities can keep pace with the criminals who have already moved in.
FAQ: Forest City and Scam Syndicates
What is Forest City?
Forest City is a US$100 billion mega-development on an artificial island in Johor, Malaysia. Launched in 2016, it was designed to house 700,000 residents but remains largely empty, with fewer than 5,000 inhabitants.
Why are scammers targeting Forest City?
The development offers modern infrastructure, large numbers of vacant properties, and international connectivity, all under a veneer of legitimate economic activity. This makes it ideal for syndicates to operate undetected.
How big is the scam industry in Southeast Asia?
Transnational scams have ballooned into a multi-billion-dollar industry, built on forced labour and trafficking. The UN estimates hundreds of thousands of people are trapped in these operations across Cambodia, Myanmar, and now Malaysia.
What is being done to stop it?
Malaysian authorities have conducted raids, but experts say the industry is professionalising. Interpol is involved in the Forest City case, but the syndicates’ ability to relocate and adapt makes enforcement a constant challenge.