Amid the controversy, the first phase of condominium units in the Forest City development are all sold.

The project is built on a man-made island less than a kilometre from Singapore, in the Malacca Straits.

Former premier Dr Mahathir Mohamad argues that the sale of these freehold properties will pave the way for 700,000 foreigners to become Malaysians - a claim the government refutes.