Johor Menteri Besar Osman Sapian said he will explain the state's property policies to Prime Minister Dr Mahathir Mohamad because the latter could be in the dark about the reason foreigners are allowed to buy properties in the state such as in Forest City.

"We will have to discuss with the committee on (Johor property ownership) to clarify (Mahathir's) statement (that foreigners can't buy Forest City properties) by explaining Johor's policy on the matter.

"Maybe he doesn't understand, because the Iskandar Region Development Authority was created during (former premier) Abdullah Ahmad Badawi's time.

"These things are related, and maybe Mahathir did not get a clear explanation on this," he was quoted as saying by Berita Harian.

On Monday, Mahathir said he would not allow foreigners to buy Forest City properties as he objected to the project being “built for foreigners”.

Osman said he had met with the cabinet two days ago on the matter, and a special committee chaired by Housing and Local Government Minister Zuraida Kamaruddin would be formed.

The menteri besar said Johor also welcomes foreigners to buy properties in the state but this is restricted to those that cost at least RM1 million.

He also said that owning properties in Johor does not mean the foreigners would become local citizens.