---
title: "Malaysian Project Forest City Faces Dual Challenges: Scams and Revival Plans"
url: https://projectchintan.com/article/malaysia-forest-city-scam-tech-campus-revival-emfd0
publisher: Project Chintan
author: Project Chintan Newsroom
section: Society
published: 2026-08-12T06:45:46.866Z
modified: 2026-08-12T09:00:14.646Z
language: en-IN
---

# Malaysian Project Forest City Faces Dual Challenges: Scams and Revival Plans

Malaysia's ambitious Forest City development is grappling with illicit activities, including scam operations discovered by police. Amidst these challenges, a Malaysian crypto investor is exploring a plan to establish a technology campus on the site.

## Key takeaways

- Malaysian police uncovered scam operations in Forest City, arresting 335 people and seizing significant assets.
- The Forest City project, a US$100 billion development, has struggled to reach its intended population capacity.
- A Malaysian crypto investor is considering establishing a technology campus at Forest City to boost the region's tech economy.
- The initiative aims to attract global talent and nurture local entrepreneurs in fields like AI and blockchain.

## What Happened

Malaysian police conducted raids on 32 premises within the Forest City development, uncovering alleged scam operations. Authorities arrested 335 individuals, predominantly Chinese nationals, and seized assets including computers and mobile phones. These operations reportedly involved cryptocurrency investment and love scams targeting victims abroad. Experts suggest this incident may represent only a fraction of a larger, professionalized global scam industry.

Separately, a Malaysian crypto investor, Jeff Yew, is considering establishing a technology campus at Forest City. This initiative aims to revive a vacant tech campus left by the closure of Balaji Srinivasan's Network School. Yew's plan, which emphasizes a "Malaysia first" approach, seeks to attract both international talent and nurture local entrepreneurs, potentially transforming the site into a hub for artificial intelligence, blockchain, and computer science.

## Background

Forest City, a US$100 billion mega-project developed by Chinese companies, was launched in 2016 with the vision of creating a financial zone capable of housing 700,000 residents. However, the artificial island development has struggled to attract its projected population, with current occupancy estimated to be less than 1% of the target. Balaji Srinivasan's Network School, which operated at Forest City for nearly two years, offered a curriculum blending practical skills with an ideological vision for technology and society. Malaysian authorities ordered the school's closure in July following a dispute.

## Key Facts

- Malaysian police raided 32 premises in Forest City, arresting 335 people.

- Assets seized included 313 computers and 1,557 mobile phones.

- The arrested individuals included 309 Chinese nationals, 19 Indonesians, 3 Malaysians, and 4 Myanmar nationals.

- Malaysian crypto investor Jeff Yew is considering establishing a technology campus at Forest City.

- The US$100 billion Forest City project was unveiled in 2016 with a target population of 700,000.

- Balaji Srinivasan's Network School, located at Forest City, was ordered to close in July.

## What Happens Next

Authorities are collaborating with Interpol to identify the masterminds behind the scam operations. Yew's plans for a technology campus are in preliminary discussions and are not yet settled, requiring alignment with Malaysia's interests and respect for local authorities.

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Canonical: https://projectchintan.com/article/malaysia-forest-city-scam-tech-campus-revival-emfd0
Reported from: Multiple Sources