After practically 20 years on the helm, Lim Kok Thay is stepping down as Chief Executive Officer (CEO) of Genting Berhad. The firm introduced that Tan Kong Han, who has served as President, Chief Operating Officer (COO), and Executive Director, will assume the CEO position beginning March 1, 2025. This transition is anticipated to reshape the company path of one in every of Asia’s most distinguished gaming and hospitality conglomerates.
Leadership change at Genting Berhad marks a brand new period:
Genting Berhad, a key participant within the international on line casino and resort trade, owns important property, together with Resorts World Las Vegas and a controlling stake in each Genting Malaysia and Genting Singapore. The firm’s affect extends throughout main gaming hubs, together with Malaysia, Singapore, and the United States.
According to The Business Times, 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.
Although stepping down as CEO, Lim Kok Thay will stay actively concerned with the corporate in his capability as Executive Chairman of the Board. He acknowledged the transition, stating, “On behalf of the Board, I would like to congratulate Dato’ Sri Tan Kong Han on his promotion and new appointment. He replaces me as Chief Executive Officer to lead and oversee the day-to-day operations of Genting Berhad, thus enabling me to focus on my duty as the Executive Chairman of the Board and my other duties within 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. While Tan will proceed as President and Executive Director, he has stepped down from his position as CEO of Genting Plantations to totally deal with 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 includes his son, Lim Keong Hui. Appointed as Deputy CEO of Genting Berhad in 2019, the youthful Lim is broadly considered the longer term chief of the family-controlled enterprise.
Challenges forward: monetary pressures and regulatory scrutiny:
The management transition comes at a vital second for Genting Berhad, as the corporate faces monetary headwinds and regulatory scrutiny.
Resorts World Las Vegas, one in every of Genting’s most high-profile developments, has struggled to realize 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.
Additionally, the corporate has confronted scrutiny over allegations associated to cash laundering and unlawful betting at its U.S. properties. Ongoing investigations have positioned additional stress on the group because it seeks to develop into new markets, together with potential gaming alternatives in Thailand and New York.
Despite its challenges, Genting Berhad stays dedicated to international enlargement. One of its main targets is Thailand, the place the federal government is contemplating legalizing on line casino operations. Both Genting Malaysia and Genting Singapore have expressed curiosity in securing a gaming license within the nation, elevating the opportunity of the 2 subsidiaries competing towards one another for entry into the Thai market.
Maybank Investment Bank analyst Samuel Yin Shao Yang just lately famous that Genting Malaysia, which already operates three casinos in New York along with Resorts World Genting, could 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 trade and rising demand for built-in resorts. If profitable, Genting Berhad might set up a brand new foothold in a key regional market, bolstering its long-term progress technique.
