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Signature Redacted Professor L Rence Susskind Department of Urban S Dies and Planning / 7 Thesis Supervisor Signature Redacted Accepted by -- Ak Ciate(Rofessor P Evaluating the Diverse Impacts of Megaprojects: The Case of Forest City in Johor, Malaysia By Joseph Marcel R. Williams B.S. in Aeronautics and Astronautics Massachusetts Institute of Technology Cambridge, Massachusetts (2014) Submitted to the Department of Urban Studies and Planning in partial fulfillment of the requirements for the degree of MASSACHUSETTS INSTITUTE Master in City Planning OF TECHNOLOGY at the JUN 2 3 2016 MASSACHUSETTS INSTITUTE OF TECHNOLOGY LIBRARIES June 2016 ARCHIVES 0 2016 Joseph Marcel Williams. All Rights Reserved The author hereby grants to MIT the permission to reproduce and to distribute publicly paper and electronic copies of the thesis document in whole or in part in any medium now known or hereafter created. redacted Author Signature Departn of Urban Studies and Planning (May18,2016)) Certified by Signature redacted Professor L rence Susskind Department of Urban S dies and Planning / 7 Thesis Supervisor Signature redacted Accepted by -- Ak ciate(rofessor P. Christopher Zegras Chair, MCP Committee Department of Urban Studies and Planning _01006=6b.." ar4 - __ Abstract Evaluating Megaprojects: The Case of Forest City in Johor, Malaysia By Joseph Marcel R. Williams Submitted to the Department of Urban Studies and Planning on May 20, 2016 in partial fulfillment of the requirements for the degree of Master in City Planning Large urban megaprojects costing billions of US dollars, erected with the promise of great economic benefits but controversial due to their environmental and social impacts, are becoming more common throughout the world. Most popular in the Middle East and in Asia, such projects exemplify how forces of globalization engage with urban form. Urban megaprojects are increasingly pursued by foreign developers looking to expand abroad but often face challenges operating in unfamiliar political and regulatory settings. Chinese developers, in particular, have global ambitions but may conflict with local priorities as they extend their reach overseas. Forest City is a vast luxury real estate development by Chinese developer Country Garden on 14 square kilometers of reclaimed land spread over four islands on the Malaysian side of the Straits of Johor, the strip of water which separates it from Singapore. This study uses Forest City as a case study to investigate the key themes associated with large urban mega projects and the impacts they have on a region. Among them is the notion that such projects are considered "exceptional" and therefore bypass traditional planning and development controls. Actors external to planning and development are suspected of co-opting the process for their own interests. Evidence collected during fieldwork from July-August 2015 and January 2016 suggests that Forest City fits neatly within these patterns and sheds light on the patterns of influence in urban development throughout the region. The case also suggests several lessons for Chinese developers operating abroad. Thesis Supervisor: Lawrence Susskind Title: Ford Professor of Urban and Environmental Planning 2 Acknowledgements I am foremost indebted to my advisor, Professor Larry Susskind, for his guidance, support and helpful feedback. He enabled me to travel to Malaysia twice for field work in support of this research. He later repeatedly used his connections at high levels to help arrange interviews in Singapore and Johor. Prof. Susskind has shepherded me through a journey that began with a practicum in January 2015 and has culminated in this thesis. Much of the funding for this research came from the Malaysia Sustainable Cities Program. Dr. Kelly Heber-Dunning deserves my sincerest thanks for introducing me to Johor, connecting me to her network of friends there, and teaching me to love mangroves. I am especially grateful to Takeo Kuwabara for his assistance and friendship both in Cambridge and abroad. For coordinating and enabling the MIT-MSCP program, Bettina Urcuioli deserves my respect and gratitude. I also owe a great deal to Dr. Serina Rahman, who provided immense assistance throughout my field work in Malaysia. She helped arrange interviews with fishermen and served as an interpreter. Through Serina I was also able to visit the Forest City reclamation site several times to document its progress. Staff at IRDA, particularly Hana Badriah and Maimunah Jaffar, likewise deserve particular thanks for hosting me at the IRDA office during much of my first trip to Malaysia. They extended a warm welcome and helped facilitate a number of further connections. Dr. Runze Yu of Country Garden generously invited me to the Forest City global press conference in Singapore. Many others in Johor made my time there especially memorable. I would like to acknowledge Libbie Cohn, who also conducted research on Forest City as part of a separate collaboration. She helped arrange valuable interviews and provided essential translation assistance for Chinese-language materials. Finally, I am eternally grateful to my parents for their unwavering encouragement, support and love throughout my education. My father, Dr. Robin B. Williams, provided insightful editorial feedback and guidance. He continues to serve as a role model throughout my life. Marcel Williams May 2016 3 List of Acronyms CDP -Comprehensive Development Plan CGPV -Country Garden Pacificview DAP - Democratic Action Party DEIA - Detailed Environmental Impact Assessment DOE - Department of Environment EIA - Environmental Impact Assessment IM -Iskandar Malaysia IRDA - Iskandar Regional Development Authority JPA -Johor Ports Authority KPRJ - Kumpulan Prasarana Rakyat Johor (Johor State investment arm) MFA -Ministry of Foreign Affairs (both Singapore and Malaysia) NPP -National Physical Plan PAT - Penilaian Awal Tapak (Protected Area Assessment) PTP -Port of Tanjung Pelepas RM - Ringgit Malaysia, Malaysian currency (at the time of writing US $1 = RM 4.1) SIIC -Shanghai Industrial Investment Company SJER - South Johor Economic Region, the previous name of Iskandar Malaysia UDC - United Development Company, Qatar UPEN -Johor State Economic Planning Committee UTM -Universiti Teknologi Malaysia List of Figures Figure 1: Context M ap for Forest City ............................................................................................................................. 9 Figure 2: Tim eline of Forest City Case .......................................................................................................................... 12 Figure 3: Sultan of Johor (official royal portrait) .............................................................................................. 17 Figure 4: Rendering of Forest City..................................................................................................................................25 Figure 5 Phoenix City, Guangzhou, one of Country Garden's mainland Chinese projects.................61 Figure 6 Parcels "alienated" to Forest City.................................................................................................................66 Figure 7: Merambong Shoal seagrass bed and the initial Forest City reclamation............................. 98 Figure 8: Rendered scene from Forest City.......................................................................................................111 4 Table of Contents A bstract ....................................................................................................................................................................................... 2 A cknow ledgem ents ................................................................................................................................................................ 3 List of A cronym s .................................................................................................................................................................... -4 List of Figures ............................................................................................................................................................................ 4 1. Introduction ............................................................................................................................................................... *........... 8 Thesis statem ent ................................................................................................................................................................. 8 Statem ent of N eed .............................................................................................................................................................. 8 Synopsis of Forest City ..................................................................................................................................................... 9 Geopolitical Situation of Johor Bahru ....................................................................................................................... 12 H istory of Johor ................................................................................................................................................................. 14 Role of the Sultan .............................................................................................................................................................. 15 Rationale for Siting Forest City in Johor .................................................................................................................. 17 Criticism and Broader Context ...................................................................................................................................
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