Forest City’s Second Act: Can Tech Give Malaysia’s US$100 Billion Megaproject a New Purpose?

Malaysia’s Forest City was conceived as a futuristic metropolis, but the US$100 billion development has spent much of the past decade struggling with weak occupancy, sluggish property sales and questions over what could ultimately bring the city to life.

Now, an unexpected answer may be emerging: technology rather than property.

Malaysian crypto entrepreneur Jeff Yew, the former head of Binance Australia and current chief executive of Monochrome Asset Management, is considering establishing a technology campus at Forest City. The proposed project could focus on artificial intelligence, blockchain and computer science, while combining international talent with the development of Malaysian entrepreneurs.

The plans remain preliminary, but they raise a bigger question for investors: Could Forest City become part of Malaysia’s push to build a higher-value digital economy?

From Property Megaproject to Technology Hub?

Forest City’s challenge has never simply been about constructing buildings. The harder task has been attracting enough people, businesses and economic activity to fill them.

The now-closed Network School, founded by technology investor Balaji Srinivasan, provided an interesting glimpse of what was possible. For almost two years, the campus brought entrepreneurs, graduates and technology enthusiasts to Forest City to work on start-ups and learn practical technology skills.

It was small relative to Forest City’s enormous scale, but it demonstrated something important: a development does not necessarily need more buildings; it needs reasons for people to be there.

Network School was subsequently ordered to close following scrutiny by Malaysian authorities, including issues involving local licensing requirements. Srinivasan has since announced plans to relocate the project to Kazakhstan.

Yew's proposed replacement would take a different approach.

Rather than simply recreating Network School, he has described a “Malaysia first” model that could include scholarships for Malaysians and programmes designed to nurture local entrepreneurs while still attracting overseas talent.

The objective is straightforward: help position Johor as a digital hub for AI, blockchain and computer science.

Why This Matters Beyond Forest City

The bigger investment story is not really about one technology campus.

It is about Malaysia's attempt to move further up the technology value chain.

Malaysia has already benefited from substantial investment in data centres, semiconductors and digital infrastructure. Johor, in particular, has emerged as an important location for new data-centre investment, helped by its proximity to Singapore.

But building data centres is only one part of creating a technology economy.

The next stage is more difficult: developing skilled workers, entrepreneurs, intellectual property and higher-value technology businesses around that infrastructure.

Think of it this way: data centres provide the physical infrastructure, but people and businesses determine how much economic value that infrastructure ultimately creates.

That is why initiatives involving AI, computer science and entrepreneurship could matter if they develop beyond individual projects.

Forest City Still Has Plenty to Prove

Investors should also keep expectations realistic.

One technology campus will not suddenly transform a US$100 billion development.

Forest City continues to face substantial challenges, including the financial difficulties of developer Country Garden, relatively low levels of economic activity and reputational setbacks. Malaysian authorities have attempted to revive the area by establishing a special financial zone with an emphasis on attracting family offices.

So far, the zone has attracted about RM670 million in assets under management, still well below the government's RM2 billion year-end target.

The recent arrest of hundreds of people allegedly involved in online scam operations in Forest City also highlights the importance of governance and oversight as authorities try to reposition the development.

For investors, this is a useful reminder that announcements and ambitions are not the same as execution.

The Singapore Connection Could Be More Important

Forest City's location may ultimately be one of its strongest advantages.

Johor sits next to Singapore, one of Asia's most established financial and technology centres. Malaysia and Singapore are also developing the Johor-Singapore Special Economic Zone, creating another avenue for investment and economic integration between the two markets.

Singapore brings capital, multinational companies and a highly developed business ecosystem. Johor offers comparatively lower operating costs, land availability and a growing infrastructure base.

If Malaysia can successfully combine those advantages, the opportunity extends far beyond Forest City.

The investment theme could eventually encompass data centres, semiconductors, AI infrastructure, financial services, property, utilities and supporting infrastructure.

But investors should distinguish between a compelling macroeconomic theme and an attractive investment.

Not every company exposed to a growing industry will necessarily generate strong shareholder returns.

What Should Long-Term Investors Watch?

Instead of trying to predict whether Forest City has finally “turned the corner”, investors can keep the thesis simple.

Watch whether real businesses, capital and skilled workers actually move into Johor. Watch whether announced technology investments translate into employment and higher-value economic activity. And watch whether the Johor-Singapore economic relationship produces a sustainable ecosystem rather than a collection of individual projects.

These developments will take years, not months, to judge.

That is what long-term investing should mean. A three-to-five-year horizon, or longer, allows investors to see whether government policies, infrastructure spending and corporate investment eventually translate into sustainable earnings.

The Bigger Picture

Forest City's story offers a useful lesson about investing in megatrends.

The first chapter was largely about property development. The next could increasingly be about technology, capital and talent.

Whether Jeff Yew's proposed campus becomes part of that transformation remains uncertain. But Malaysia's broader direction is clearer: the country wants to move beyond semiconductor assembly and data-centre construction toward AI, advanced manufacturing, chip design and a deeper digital economy.

For investors, the opportunity is therefore bigger than Forest City itself.

The key is not to chase every announcement attached to AI, blockchain or Johor. Instead, look for businesses that can translate these structural changes into sustainable revenue, cash flow and returns on capital.

The theme may be exciting. The investment case still has to make sense.