Malaysia’s Forest City, a $100 billion artificial island project launched in 2016 as a luxury residential and financial zone, has become a hotspot for alleged scam syndicates, according to recent police reports.

Originally designed to accommodate up to 700,000 residents, the 3,400-acre development near Singapore remains largely vacant, with less than 1% occupancy. Rows of empty skyscrapers and deserted streets have earned it the nickname "ghost city."

Police Raids Uncover Scam Operations

In July 2026, Malaysian authorities raided two major scam hubs within Forest City, arresting 335 individuals and confiscating equipment including over 300 computers and 1,500 mobile phones. The operations, spread across 32 apartments and bungalows, were reportedly run by cryptocurrency fraud syndicates targeting victims overseas through investment and romance scams.

The detainees comprised mostly Chinese nationals, alongside Indonesians, Malaysians, and Myanmar citizens. Malaysian police are collaborating with Interpol to identify the masterminds behind the schemes.

From Failed Dream to Criminal Enterprise

Forest City’s decline is attributed to factors such as the COVID-19 pandemic, China’s property market slump, and restrictive borrowing policies for Chinese buyers. These challenges stalled the ambitious project, leaving vast modern infrastructure and vacant properties vulnerable to exploitation.

Experts describe the scam groups operating here as highly organized, resembling multinational corporations with dedicated recruitment, IT, and money laundering units. The semi-abandoned nature of Forest City provides privacy and minimal scrutiny, making it an attractive base for illicit activities.

Wider Implications and Trends

  • Forest City’s scam hubs are part of a broader, evolving global fraud industry that increasingly professionalizes and expands across borders.
  • Many scammers are believed to have relocated from Cambodia, where crackdowns on large-scale scam compounds have intensified.
  • The industry now offers better pay and working conditions to experienced fraudsters, reflecting a shift toward a corporate-style criminal enterprise.

Despite police action, local residents acknowledge the persistence of scams within the development. Some tenants remain indifferent, while others note the gradual increase in occupancy and activity in recent months.

Forest City’s trajectory mirrors other notorious scam centers in Southeast Asia, highlighting the challenges authorities face in combating sophisticated transnational fraud networks embedded within seemingly legitimate urban developments.