Genting Singapore’s Strategic Shift: The Dissolution of Subsidiaries and Future Prospects
In a recent announcement, Genting Singapore, the operator of the renowned Resorts World Sentosa, has decided to place seven wholly-owned subsidiaries incorporated in Japan under members’ voluntary dissolution and liquidation. This decision marks a significant turning point for the company, coming three years after its ambitions to establish an integrated resort in Yokohama were thwarted.
The Disbandment of Japanese Subsidiaries
The subsidiaries affected by this dissolution include Acorn Co., Ltd, BlueBell Co., Ltd, Genting Japan Co., Ltd, Genting Tokyo Co., Ltd, Resorts World Japan Co., Ltd, Resorts World Tokyo Co., Ltd, and SunLake Co., Ltd. Genting Singapore clarified that this move will not materially impact the group’s consolidated net tangible assets or earnings per share. This suggests that the decision, while strategic, is not expected to impose any significant financial burden on the company.
Yokohama: A Lost Opportunity
Genting Singapore had emerged as a strong contender for an integrated resort license in Yokohama, given its impressive track record in managing a successful integrated resort in Singapore. The Japanese authorities held Singapore’s stringent regulatory environment in high regard, which worked in Genting’s favor during the bidding process. To bolster its proposal, Genting formed a formidable consortium comprised of notable partners, including Japanese gaming firm Sega Sammy Holdings, security and disaster prevention specialists Sohgo Security Services Co., and three of Japan’s prominent architecture, engineering, and construction enterprises: Kajima Corporation, Takenaka Corporation, and Obayashi Corporation.
However, the potential for development in Yokohama came to an abrupt halt when the local Integrated Resort (IR) bid process was officially terminated in September 2021. This closure came on the heels of the mayoral election that saw Takeharu Yamanaka, an outspoken anti-IR campaigner, come to power. Following the result, Genting Singapore expressed their surprise and disappointment over the cancellation, stating that they had invested significant time and effort into crafting what they believed was a compelling bid.
Exploring New Horizons: Thailand
Despite the setback in Japan, Genting Singapore remains focused on growth and expansion. The company has signaled interest in Thailand as a prospective destination for future integrated resort development, contingent on the passing of IR legislation currently under review by the Thai cabinet. This legislative review presents a new opportunity for Genting Singapore to explore uncharted waters in a promising market that is increasingly looking to integrate tourism and entertainment.
Conclusion: A New Chapter for Genting Singapore
The dissolution of Genting’s Japanese subsidiaries marks the end of one chapter in the company’s history but also opens the door to new opportunities. As the gaming and resort landscape evolves in Asia, Genting Singapore’s focus on potential ventures in Thailand highlights their adaptability and intent to harness growth platforms that resonate with the company’s vision of delivering unparalleled entertainment experiences.
In summary, while the company faced challenges in Japan, it is navigating through these complexities with a proactive approach toward new markets. For investors and stakeholders, Genting Singapore’s strategic decisions will undoubtedly be watched closely as the company embarks on this new journey.
