Cenbet vice-president Simon Lim said Mahathir’s statement was part of “an unsettling pattern in the way major government decisions are announced”.
Although the Prime Minister’s Office later clarified that foreigners would be allowed to own property subject to conditions, he said, such “communication gaps” could cause jitters among investors.
“It also raises questions about the federal government’s perceived encroachment into land matters, which rightfully should come under the state’s jurisdiction,” he added.
In a statement, Lim said the Pakatan Harapan (PH) government had already been seen as flip-flopping on other mega projects such as the Singapore-Kuala Lumpur High-Speed Rail and the East Coast Rail Link.
“Because these multi-billion ringgit projects involve foreign governments and investors, any major developments would attract international media scrutiny.
“With a new government in Putrajaya, the country needs to allay investors’ concerns, not add on to the uncertainty, especially when we need more FDIs in an increasingly competitive economic landscape,” he said.
On Monday, Mahathir claimed the Forest City project had been built “for foreigners, not Malaysians”.
“Most Malaysians are unable to buy those flats.
“One thing is certain, that city that is going to be built cannot be sold to foreigners. We are not going to give visas for people to come and live here,” he said.
However, Forest City developer Country Garden Pacificview said the prime minister’s remark could have been taken out of context by the media.
It said there was no law to stop foreigners from buying property in Malaysia, and that the matter of foreign ownership in Forest City had not been an issue during a meeting between the company’s chairman Yeung Kwok Keung and Mahathir on Aug 16.
Lim said Cenbet fully supported PH in reviewing or cancelling any lopsided deals that were detrimental to the country.
“But in doing so, the government needs to be mindful of international investors’ sentiments and the long-term economic well-being of the country.
“Any announcements on major policy decisions ought to have gone through due processes, including seeking views from various stakeholders.”