After practically twenty years on the helm, Lim Kok Thay is stepping down as Chief Govt Officer (CEO) of Genting Berhad. The corporate introduced that Tan Kong Han, who has served as President, Chief Working Officer (COO), and Govt Director, will assume the CEO position beginning March 1, 2025. This transition is predicted to reshape the company course of one among Asia’s most outstanding gaming and hospitality conglomerates.
Management change at Genting Berhad marks a brand new period:
Genting Berhad, a key participant within the international on line casino and resort business, owns important belongings, together with Resorts World Las Vegas and a controlling stake in each Genting Malaysia and Genting Singapore. The corporate’s affect extends throughout main gaming hubs, together with Malaysia, Singapore, and the US.
Based on The Enterprise Instances, the management change prompted a direct response from buyers. Genting Berhad’s inventory dropped practically 12% to RM3.29 by the shut of buying and selling on Friday, February 28, whereas Genting Malaysia shares fell 19.5% to RM1.90. Genting Singapore additionally skilled a decline, closing 1.4% decrease at S$0.73.
Though stepping down as CEO, Lim Kok Thay will stay actively concerned with the corporate in his capability as Govt Chairman of the Board. He acknowledged the transition, stating, “On behalf of the Board, I want to congratulate Dato’ Sri Tan Kong Han on his promotion and new appointment. He replaces me as Chief Govt Officer to guide and oversee the day-to-day operations of Genting Berhad, thus enabling me to give attention to my responsibility because the Govt Chairman of the Board and my different duties inside the Genting Group.”
Tan has been a pivotal determine inside Genting Berhad since 2007, holding numerous management roles. His appointment as CEO aligns with the corporate’s long-term succession planning. Whereas Tan will proceed as President and Govt Director, he has stepped down from his position as CEO of Genting Plantations to completely give attention to main Genting Berhad.
Lim Kok Thay’s departure from the CEO position is seen as a part of a broader management transition technique that additionally entails his son, Lim Keong Hui. Appointed as Deputy CEO of Genting Berhad in 2019, the youthful Lim is extensively considered the long run chief of the family-controlled enterprise.
Challenges forward: monetary pressures and regulatory scrutiny:
The management transition comes at a crucial second for Genting Berhad, as the corporate faces monetary headwinds and regulatory scrutiny.
Resorts World Las Vegas, one among Genting’s most high-profile developments, has struggled to attain sustained profitability. In This autumn 2024, the property reported a income of $190 million, reflecting a minor enchancment over the earlier quarter however a major decline from the $241 million recorded in This autumn 2023. Its EBITDA stood at simply over $1 million—an alarming drop from the $58.2 million in the identical interval the earlier 12 months.
Moreover, the corporate has confronted scrutiny over allegations associated to cash laundering and unlawful betting at its U.S. properties. Ongoing investigations have positioned additional strain on the group because it seeks to develop into new markets, together with potential gaming alternatives in Thailand and New York.
Regardless of its challenges, Genting Berhad stays dedicated to international enlargement. One among its main targets is Thailand, the place the federal government is contemplating legalizing on line casino operations. Each Genting Malaysia and Genting Singapore have expressed curiosity in securing a gaming license within the nation, elevating the opportunity of the 2 subsidiaries competing in opposition to one another for entry into the Thai market.
Maybank Funding Financial institution analyst Samuel Yin Shao Yang just lately famous that Genting Malaysia, which already operates three casinos in New York along with Resorts World Genting, might submit a separate bid from Genting Singapore. This competitors underscores the strategic significance of Thailand as a brand new gaming vacation spot in Southeast Asia.
The potential legalization of casinos in Thailand presents a profitable alternative, given the nation’s sturdy tourism business and rising demand for built-in resorts. If profitable, Genting Berhad may set up a brand new foothold in a key regional market, bolstering its long-term development technique.
