These seaside apartments were a ghost city - then police say scammers moved in

Lead

Malaysian police have uncovered two alleged online scam syndicates operating from luxury premises in Forest City, a once-ambitious mega-project that has struggled to attract residents. The raids, which took place in mid-July, resulted in the detention of 335 people and the seizure of assets worth approximately one million ringgit (£181,810; $245,000), including 313 computers, 1,557 mobile phones, 17 laptops and 10 modems, as reported by the BBC and the South China Morning Post.

The suspects were found across 27 apartments and five bungalows, allegedly used to run bogus cryptocurrency investment and romance scams, as well as schemes impersonating law firms, targeting victims overseas, according to police statements covered by both outlets. The operations, described by police as two separate syndicates, were spread over 32 premises in the Forest City development in Johor Bahru, near Singapore.

Coverage Comparison

The BBC's coverage framed the story as a dramatic turn for a 'ghost city' — a project once pitched as a 'dream paradise for all mankind' now allegedly serving as a hub for criminals. The report emphasized the contrast between the project's original ambitions and its current state, highlighting the eerie emptiness of the development and the dust-covered interiors of vacant apartments. The South China Morning Post, meanwhile, approached the story more formally, framing it as an early governance test for Malaysia's attempts to recast Forest City as a hub for global wealth and mobile talent. Both outlets reported the core facts consistently: the number of arrests, the premises involved, and the nature of the alleged crimes.

One notable difference is in the level of detail about the suspects' nationalities. The South China Morning Post reported that the 335 detainees comprised 309 Chinese nationals, 19 Indonesians, four Myanmar nationals and three Malaysians, aged between 20 and 58. The BBC's report also included these figures but omitted the breakdown of other nationalities in its initial account, focusing instead on the Chinese nationals as the largest group.

Another difference lies in the context provided. The South China Morning Post underscored Forest City's status as Malaysia's first special financial zone, noting government tax incentives and a dedicated visa track designed to attract family offices and high-value workers. The BBC, while mentioning the project's original eco-friendly metropolis vision for well-heeled Chinese clients, placed greater emphasis on the factors that had sunk its ambitions: the Covid pandemic, China's property slump, and restricted borrowing limits for Chinese citizens.

Key Claims

The details of the arrests were consistent across both reports. Johor police chief Ab Rahaman Arsad stated that 335 people were detained during coordinated raids on July 15, comprising 309 Chinese nationals, 19 Indonesians, four Myanmar nationals and three Malaysians. The suspects were found in 27 flats and five bungalows, allegedly used to run scams including cryptocurrency investment fraud, romance scams, and schemes impersonating law firms. Police also said the flats had been booked under a company name and the bungalows under individual names.

Both outlets reported that police were working with Interpol to trace the alleged masterminds. The South China Morning Post, citing The Star, an English-language daily, quoted Ab Rahaman as saying that some suspects had previously worked at scam centres overseas. This detail was not featured in the BBC's article.

Regarding the background of Forest City, the BBC reported that the project was initially dreamed up as an eco-friendly metropolis for well-heeled Chinese clients. Unveiled in 2016 by Chinese developers, the $100bn mega-project was pitched as a special financial zone that could house some 700,000 residents. A decade later, the 14-square-kilometre artificial island is thought to be inhabited by less than 1% of that number. The South China Morning Post added that Forest City is Malaysia's first special financial zone, sitting within the wider Johor-Singapore Special Economic Zone framework, with government efforts to attract family offices and high-value workers.

Experts and locals, as quoted by the BBC, believe the Forest City operations were probably staffed by criminals who had been driven out of Cambodia. The report also suggested that the scam industry is shifting in size and shape, with syndicate operators recruiting and retaining experienced scammers with higher pay and better working conditions. These claims, carried by a single outlet, were not corroborated by the South China Morning Post.

Perspectives

Johor Police: Johor police chief Ab Rahaman Arsad described the operations as two alleged online scam syndicates, confirming the arrests and the nature of the crimes. He said authorities were working with Interpol to trace the alleged masterminds, and noted that some suspects had previously worked at scam centres overseas.

Forest City Investor: A 56-year-old investor, Jason Deng, who was among the first to buy property in Forest City, expressed regret over his purchase, saying he had paid 'a lot of money' for five properties and had believed the project would be 'much, much better.' His perspective, featured in the BBC's report, reflects the disillusionment of some early buyers.

Malaysian Government: While not directly quoted, the South China Morning Post's framing highlights the government's efforts to recast Forest City as a special financial zone, offering tax incentives and a dedicated visa track. This perspective suggests a desire to move past the project's troubled history and attract legitimate investment.