China developer Country Garden: No decision yet from DOE on land plan 

“In the most recent discussions in late December 2014, the DOE and Country Garden Pacificview discussed assessment directives and compliance to high standards. These discussions do not mean that the project size is to be limited or compromised in any way,” said Country Garden Pacificview executive director Datuk Md Othman Yusof (file pic) in a statement. File pic shows Md Othman showing the map of Forest City which is located near to Pendas in Gelang Patah, Johor.

PETALING JAYA: China developer Country Garden Holdings Ltd is awaiting the final decision from the Department of Environment (DOE) on its application to reclaim and develop 1,600ha in the Straits of Johor that is meeting resistance from Singapore.

It has been reported that the application to reclaim the land for a project called Forest City had been approved, but only for 405ha.

An official of the company said no concrete decision had been made by the DOE as yet, and expects to only hear from the department later this week.

“We are very confident that the detailed environmental impact assessment (DEIA) report that was done shows that the project is technically sound,” Country Garden Pacificview business development manager Allen Khong told StarBiz.

Country Garden Pacificview is the master developer of the RM600bil gross development value Forest City and is a joint venture between Country Garden and Johor state company Kumpulan Rakyat Prasarana Johor.

It was reported that the DOE had decided to limit the development to 405ha, following complaints by the Singapore government and locals that the reclamation work would negatively impact the environment in the narrow waterway. 

“In the most recent discussions in late December 2014, the DOE and Country Garden Pacificview discussed assessment directives and compliance to high standards. These discussions do not mean that the project size is to be limited or compromised in any way,” said Country Garden Pacificview executive director Datuk Md Othman Yusof (pic) in a statement released yesterday evening. 

Md Othman added that to keep all stakeholders and interested parties up-to-date, the company was developing a dedicated online vehicle as a frequently asked questions and query response platform, which will go live by Jan 9. 

The Singapore government had earlier issued a note asking for more details on the project and also its impact on the Straits of Johor, thus provoking the compilation of a DEIA report.

Work on the project, which comprises four reclaimed islands, has been suspended since June 16, pending the compilation and approval of the DEIA report. 

The DOE’s supposed move did not come as a surprise to market watchers, given the environmental impact of the reclamation works to the area.

However, the reported limitation could be seen in a positive light, given the current weak sentiment in the property market. 

CB Richard Ellis (M) Sdn Bhd group executive director Paul Khong said the reclamation works would take one to two years to complete, by which time local market sentiments may improve. 

Meanwhile, Landserve (Johor) Sdn Bhd executive director Wee Soon Chit said: “There is no need to be so gung ho and reclaim everything now. Reclaiming everything at one go would also impact the company’s cash flow. It already has the existing project in Danga Bay, which should keep it busy for the time being.” 

Khong said Iskandar should still benefit from the further industrial relocations and spillovers from Singapore in the immediate future, especially so when the market reverts positively. - The Star