He said the project’s critics have been making false assertions that it would become like the failed luxury township in Johor, where high-rise buildings and a golf resort have been built on artificial islands.

Contrary to Forest City, he said, PSI’s proponents are trying to make it a sustainable project with LRT depots, green spaces, and waterways to be built on Island A, which has been named Silicon Island.

These proposed developments on the island – one of three – will make the project climate resilient and in compliance with environmental, social and governance (ESG) standards.

“I have said (previously) that we will not see any high-rises (on Silicon Island) because (the area is) right below the flight path (heading to Penang International Airport),” he said at a press conference here today.

“So what they (critics) are trying to portray, that it (PSI) will be another Forest City, is a concoction of their own.”

He was responding to queries about the opposition by environmental groups to the PSI project, which has been given conditional approval by the environment department.

The Forest City township has been branded a “ghost town” by news outlets as it has struggled to get foreigners, particularly Chinese nationals, to buy properties there.

In 2018, then prime minister Dr Mahathir Mohamad caused an international stir when he announced that Malaysia would not allow foreigners to buy residential units built at the US$100 billion (RM426 billion) luxury township project.

However, he later made a U-turn and said foreigners could buy properties in Forest City, but added that the then Pakatan Harapan government would not issue them visas to make Malaysia their home.

Despite the partial retraction, several news outlets reported that the damage had already been done to Malaysia’s reputation in the eyes of Chinese investors.