Forest City, the vast man-made island near Johor, Malaysia, is seeing a revival of sorts with a new and unexpected group of tenants—crypto enthusiasts. Once dubbed a “ghost town,” the Chinese-built development has now become home to around 150 to 200 individuals, primarily from the United States, who have arrived on the island as part of a new three-month initiative. This movement aims to establish the Johor town as a financial hub, enhanced by tax incentives and infrastructure upgrades.
These individuals, often referred to as “crypto bros,” are participants in The Network School, an “internet university” founded by American crypto advocate Balaji Srinivasan. The school’s vision, rooted in Srinivasan’s concept of a “network state,” seeks to create a decentralised society where shared ideals are more important than physical boundaries.
Forest City, located just 40km from Singapore, was once envisioned as a utopian metropolis. However, despite an investment of over $100 billion, the island has struggled to attract residents, earning it the reputation of a ghost town. But Srinivasan’s Network School has brought new life to the development, attracting crypto enthusiasts looking for an escape from conventional societies.
Speaking about the island, Srinivasan described it as “a beautiful and sunny” location that offers proximity to a major city with international connections, allowing individuals to work remotely and explore the region on weekends. “It’s beautiful and sunny and less than an hour from a major city with an international airport,” he wrote in a post dated August 17.
However, a visit by The Edge Singapore in late September painted a different picture. While the Network School attendees could be seen at the Forest City Marina Hotel and various other locations, much of the island still resembled a deserted metropolis. Empty streets, vacant shopping boulevards, and unoccupied housing blocks stood in stark contrast to Srinivasan’s portrayal.
Crypto enthusiasts living at Forest City pay between $1,000 and $2,000 per month for accommodation at the Forest City Marina Hotel. This includes meals, and participants also engage in activities such as solving daily crypto challenges, earning digital credentials, and participating in talks by visiting experts. The Network School’s attendees, many of whom are content creators, developers, and entrepreneurs, also engage in a daily workout routine followed by a healthy meal designed by anti-ageing tech entrepreneur Bryan Johnson.
Despite the slow progress, Srinivasan’s ultimate goal is to transform Forest City into a Silicon Valley for crypto entrepreneurs, attracting investors with Malaysia’s new tax incentives. Prime Minister Anwar Ibrahim’s introduction of the Forest City Special Financial Zone (SFZ) in 2023 has made the area particularly appealing, offering a 0% tax rate for family offices and other incentives for investors and businesses.
Yet, as Forest City continues to evolve, it remains to be seen whether Srinivasan’s vision can fully revitalise the island. While the area’s tax benefits and strategic location offer promise, the island’s emptiness poses a challenge to its success.
