PARLIAMENT | Putrajaya has no power to bar foreigners from purchasing the remaining properties in Forest City as the man-made islands are located in an international zone, the Dewan Rakyat was told today.

"Forest City is under the purview of Johor state government and it is located in an 'international zone', (so) no restriction can be imposed against foreigners buying the properties," said Deputy Housing and Local Government Minister Raja Kamarul Bahrin Shah Raja Ahmad.

"This is beyond the jurisdiction of the federal government," he said during a question-and-answer session at the Dewan Rakyat today.

"International zone" is the term used by the state government to refer to properties that are open for ownership by foreigners, explained Raja Kamarul. 

According to him, more than 93 percent of Forest City properties had been purchased by foreigners.

Putrajaya has engaged with the developer and the state government to encourage more Malaysians to purchase the remaining properties.

This was to minimise the social impact and resentment from the local community against the exclusivity of Forest City, Raja Kamarul said.

He was responding to Khairy Jamaluddin (BN-Rembau) who asked if the government going to restrict foreigners from purchasing the remaining unsold properties in the controversial mega project.

On Aug 27, Prime Minister Dr Mahathir Mohamad vowed to prevent foreigners from purchasing properties at the Forest City project in Johor.

Built by China's Country Garden Holdings Company in a joint-venture with businesses owned by the Sultan of Johor, Forest City was envisioned as a sprawling 13.86 sq km smart city built on four artificial islands.

The developer had projected a population of 700,000 by 2035, but the project has mostly been marketed to foreigners.

It was also advertised as a futuristic green city, offering the best in healthcare and education, and with close proximity to Singapore.

Prior to the May 9 election, Mahathir had repeatedly criticised his predecessor Najib Abdul Razak for allowing the project to go on, arguing that it would severely change the demographics of Johor.