ISKANDAR PUTERI: Will the set up of a Malaysia Division protect Country Garden Group's flagship Forest City international project in Johor from China's financial issues?
Country Garden has officially placed Forest City under its newly-established Malaysia Division.
Sources told Business Times that discussions took place two weeks before the official announcement on August 4.
It is learnt the decision to shift management was to ensure Forest City remained unaffected by the financial difficulties facing its parent company in China.
The new Malaysia Division is expected to provide Forest City with dedicated resources and a localised approach, enabling the project to continue with its development and growth without the constraints from the parent company's financial problems.
Forest City's local management, Country Garden Pacificview Sdn Bhd (CGPV), which has three executive directors, will now handle dealings with local authorities and stakeholders, free from direct influence from the Chinese headquarters.
Positioning Forest City under the Malaysia Division will help insulate the project from China's financial issues and ensure uninterrupted development.
The move also focuses on leveraging local talent and resources, especially with Forest City's Special Financial Zone (SFZ) status. It signals increased collaboration with the unity government, particularly in advancing SFZ initiatives.
Johor Trade Investment and Consumer Affairs Committee chairman Lee Ting Han noted that the state government would not comment on Forest City's internal or commercial arrangements but welcomed the increased focus on Malaysia and the regional market.
"We have had discussions with the management about diversifying beyond a single market. Country Garden has cooperated by updating most signage and promotional materials to Malay and English to appeal to domestic and regional markets," Lee told Business Times.
He added that the SFZ incentive packages will be finalised and announced this month.
"We trust that once announced, the Malaysia Division will work with state and federal governments to promote Forest City within the financial and capital markets," he added.