Of course you can build a new capital city, but that isn't what we're talking about here. Capital cities are built off of government, so you can make a new city work in that way, the economics aren't really important. Expecting to build a new center of commerce, however, is just silly.
Originally Posted by Marcu
Malaysia has been predicted to be part of the next wave of "Asian Tigers" to emerge as dominant economic players in the world (with the first wave being Singapore, South Korea, Taiwan, etc). While I certainly hope that's the case, I just don't see it happening with the economic mentality of the government in place. In the best and most positive case scenario, Malaysia will go through the same fate as Japan: rise to promenance in part through the accumulation of massive government debt, taper off, realize the faults of the previous policy, and reform. Seems to have worked for Japan as the economy is seeing steady growth for the first time in over 15 years after major regulatory and economic reforms. Hope it will too for Malaysia. Just don't expect the more steady organic path of Singapore.
The last sentence in this post really hits the nail on the head. This city will probably pop early and fast based on public sector involvement in the creation of it. Everyone will gloat about how great it is, have fun. Give it a while and government planning will prove to be totally impotent in getting anything done and growth will tank.
marcu and Jaroslaw got this one right.
chiphile, everyone knows Dubai is built on slave labor. It's not really relevant to a discussion of this city. Besides, it's amusing that you denounce people posting in this thread as "internet nerds are more competent in deciding what a country should do", then proceed to be exactly that. You then go on to ask for people to provide some logical points to argue instead of just dismissing the idea (they actually have provided some great points, re-read their posts and realize that these people probably know a lot more about economics than you). Of course, in making this request, you dismiss their angle without any "logical points" of your own.
People are laughing at you.