By admin 
From a distance, Malaysia’s Forest City appears almost as if it were 3D-printed: a stark collection of identical white blocks jutting out from an otherwise unremarkable coastline. Unveiled by Chinese developers in 2016 with a colossal $100 billion price tag, the mega-project was ambitiously pitched as "a dream paradise for all mankind," envisioned as a special financial zone capable of housing an estimated 700,000 residents. However, over a decade later, this 14-square-kilometer (3,400-acre) artificial island, strategically located on Singapore’s doorstep, is believed to be populated by less than a mere 1% of its intended inhabitants. Rows of eerily vacant skyscrapers cast long shadows over deserted streets, and within the silent apartments, benchtops and windows are coated in a fine layer of dust, testaments to its unfulfilled promise.
Jason Deng, a 56-year-old investor who was among the first to purchase property in Forest City, invested "a lot of money" for five apartments, recalling the initial rosy projections. "In 2016 they described it here like the golden city; very, very beautiful," he shared, his voice tinged with disappointment. "If I had known it was not so good I would not have bought so many apartments. I thought it would be much, much better." It appears, however, that this "golden city" moniker has proven true for a different demographic than the developers had hoped to attract.
In a significant operation in mid-July, Malaysian police conducted raids across 32 premises within Forest City, targeting two alleged scam operations. This led to the arrest of 335 individuals and the seizure of assets valued at approximately one million Malaysian Ringgit (equivalent to about £181,810 or $245,000). The confiscated items included a substantial cache of 313 computers, 1,557 mobile phones, 17 laptops, and 10 modems. According to police reports, these two call centre hubs – one sprawling across 27 apartments over five floors of a residential tower, and the other occupying five bungalows – were instrumental in running cryptocurrency investment and romance scams that targeted victims internationally. The arrested individuals comprised 309 Chinese nationals, 19 Indonesians, three Malaysians, and four Myanmar nationals. The Inspector-General of Police for Johor, Ab Rahaman Arsad, confirmed that authorities were collaborating with Interpol to apprehend the masterminds behind these elaborate schemes. The BBC’s attempts to solicit comments from Forest City and the Johor police department were unsuccessful.
Experts and local residents alike suggest that this recent bust is likely just the tip of the iceberg, indicative of a burgeoning and increasingly sophisticated global scam industry. John Wojcik, an analyst at TRM Labs, a firm specializing in investigating crypto-facilitated crime, notes the professionalization of these criminal enterprises. "The reality is that many of these organisations now resemble multinational corporations more than a traditional organised crime network or gang," he stated. "They have dedicated recruitment teams, IT departments, money-laundering specialists and infrastructure."
Authorities and experts generally agree that the individuals involved in the Forest City operations were likely criminals displaced from Cambodia, which had previously served as a major hub for transnational scams. Over the past five years, this criminal sector has exploded into a multi-billion-dollar industry, often underpinned by the forced labor of trafficking victims subjected to brutal treatment and threats of abuse. In response, the Cambodian government has intensified its efforts to dismantle these operations since late last year, with authorities estimating that hundreds of thousands of people have left the country as raids on large-scale scam compounds escalated.
However, the operations uncovered in Forest City appear to deviate from the typical, heavily fortified "scam compounds" seen in places like Sihanoukville or along the Myanmar border. These alleged scam hubs in Forest City are described as more "white collar," reportedly employing local residents and operating adjacent to unsuspecting neighbours. Kevin, a tenant who also works in property sales within Forest City and requested his name be changed for fear of repercussions, believes that scammers continue to operate within "condominiums or serviced apartments" in the complex. "We know what they’re doing," he admitted. "This is actually a very common issue in Johor city and Kuala Lumpur, but especially in Forest City. Forest City is very special."
What makes Forest City "special," according to Kevin, Wojcik, and others, is precisely its reputation as a semi-abandoned "ghost city." Kevin elaborated, "When we speak to clients or customers, the company teaches us to say ‘we already have 23,000 residents living in this area’," though he quietly conceded that the actual number is "less than 5,000." He posits that this discrepancy is the very reason scammers have chosen Forest City as a base of operations. "They have their own privacy… Nobody comes here." This sense of anonymity and the abundance of unoccupied spaces provide an ideal cover for illicit activities.
Several factors have contributed to the decline of Forest City’s original vision. Spearheaded by Country Garden, a major Chinese property developer, and Danga 88, a private company associated with Sultan Ibrahim Iskandar of Johor, the project was conceived as an eco-friendly metropolis catering to affluent Chinese clientele. With amenities such as a high-end hotel, a golf course, and a water park, the resort-style city’s seafront offices and apartments were expected to be highly sought after. However, the combined impact of the COVID-19 pandemic, China’s significant property market downturn, and stringent borrowing restrictions for Chinese citizens severely hampered these ambitious plans, effectively bringing the project to a near standstill. The lights remain on, but the city is largely devoid of its intended residents.
This environment of underutilization has seemingly made the complex a prime target for scammers. Wojcik observes, "Forest City reflects the conditions organised crime have been targeting for years – a flagship location marketed as a prestigious, luxury, master-planned smart city that never came close to fulfilling that vision." He further explains that "Developments like this offer precisely what these syndicates look for: modern infrastructure, large numbers of vacant properties, and international connectivity all wrapped around the veneer of legitimate economic activity to ensure that the criminal nature of what goes on inside remains unnoticed."
The glittering facade of Forest City bears a striking resemblance to another infamous metropolis located approximately 1,800 kilometers (1,120 miles) to the north: Shwe Kokko. Dubbed a "resort city" on Myanmar’s border with Thailand, Shwe Kokko has become one of the world’s most notorious scam hubs. Developed by the Chinese conglomerate Yatai, Shwe Kokko promotes itself as a secure holiday destination for Chinese tourists and a sanctuary for the ultra-wealthy. However, beneath its manicured streets and luxurious villas lies a nexus of fraud, money laundering, and human trafficking.
Despite facing numerous challenges and with only an estimated 15 to 20% of the originally planned project completed, Forest City continues to market itself as a burgeoning center for property investment, technological innovation, and tax-free business ventures. This entrepreneurial branding serves as a Trojan horse for scammers seeking to establish operations without attracting undue scrutiny, thereby enhancing their ability to perpetrate fraud. Wojcik elaborates that "when scam syndicates can embed themselves behind seemingly legitimate businesses in ordinary commercial developments, they not only become more difficult to detect and disrupt, they become capable of exerting serious amounts of power and influence through the massive profits they generate."
This acquired power and influence enable scammers to professionalize their operations in other ways. While human trafficking remains a significant source of labor for the scam industry, there is a discernible trend of syndicate operators actively recruiting and retaining experienced scammers by offering higher salaries and improved working conditions. Concurrently, within online forums and Telegram groups where scam job openings are advertised, career scammers are now posting detailed resumes, highlighting their fraudulent activity experience and expressing a strong desire to work. "It’s a sign the industry is maturing into a more professionalised criminal enterprise," Wojcik explains, "while coercion and exploitation still remain widespread."
The raids in Forest City underscore the evolving scale and nature of the transnational scam industry. This is not the first instance of such operations being uncovered in Malaysia. Throughout 2022, even before the industry garnered widespread global attention, Malaysian authorities conducted raids on several scam centers operating out of bungalows and condominiums in the southern state of Johor, the northern state of Penang, and the capital city of Kuala Lumpur. While these and other major crackdowns sent a clear message of zero tolerance to fraud syndicates, Wojcik points out that Malaysia has historically been a base for influential criminal networks, and "any signs of large-scale re-emergence deserve close attention."
In Forest City, these signs may already be becoming apparent. Kevin describes the presence of scams as an "open secret" within the development, noting that "the only shocking thing is that the police were effective." He is confident that more scam operations are still active but appears unconcerned by the possibility of his neighbors defrauding people of substantial sums. "For me, I don’t care," he stated. "It’s not my business… I work here just for the salary." Other residents share a similar sentiment. Phillip, whose name has also been changed, relocated to Forest City from Singapore last year, drawn by its relatively affordable property market and the perceived value for money. Working in the tech sector, he emphasizes his focus on cyber protection. "Yes they [the scammers] might be on my doorstep, they might be my neighbors… [they] could be one of the ones that’s running one of these syndicates. At the end of the day, it doesn’t matter where you go – this is going to happen."
He admitted he was "not surprised" by reports of scam centers within his complex. What has genuinely surprised him is the increasing number of people moving to Forest City. One of the primary reasons he chose the development was for its tranquility, but he is pleased to witness its transformation from a "ghost town" into a place that is becoming more desirable. "So many people have lost money on these developments," he observed. "But the last three months, you see the lights on in the condos. You’ve gone from one in 20 to maybe one in five." This influx of new residents, seeking opportunity and a renewed sense of community, marks a potential turning point for Forest City, though the shadow of its past and the ongoing threat of criminal activity linger.
