In an abrupt response to recent speculations, the Malaysian government swiftly denied a report from Bloomberg suggesting that the Southeast Asian nation was deliberating the authorization of a new casino resort in close proximity to Singapore.
The report emerged last Wednesday, claiming that Malaysian Prime Minister Anwar Ibrahim had been in discussions with Genting Group’s casino billionaire, Lim Kok Thay, and lottery tycoon, Vincent Tan of Berjaya Corporation. These are among the wealthiest individuals in the country, and their alleged conversation surrounded the development of an extensive casino resort in the Forest City area. This unfinished $100 billion special economic zone—partially managed by the Malaysian government and King Ibrahim Iskandar of Johor—would reportedly be the site of the proposed resort.
Addressing reporters at an event in Putrajaya, Prime Minister Anwar emphatically denied this claim, branding it a “lie.” He refuted the story with a sweeping “X” gesture with his arms. Forest City, a one-square-mile development located on reclaimed land at the southernmost point of Malaysia near Singapore, commenced in 2016, inspired by a Chinese consortium. King Ibrahim, himself a billionaire entrepreneur, holds an investment stake of over 20% in the development.
Genting, founded by Lim Kok Thay, operates the singular casino in Malaysia located in the Genting Highlands resort in Pahang. The company also owns and runs Resorts World Sentosa in Singapore.
Forest City, designed to attract wealthy Chinese investors seeking favorable tax environments abroad, is a unique mixture of high-end residential towers, hotels, retail spaces, and office buildings. However, unexpected challenges have impacted this opulent vision, its streets now bearing an ominous resemblance to a ghost town.
The political crisis that engulfed Malaysia between 2020 and 2022, marked by multiple political defections hurling governmental control into disarray, substantially suppressed Chinese interest and sales. The COVID-19 pandemic only worsened the situation. Increasing restrictions from China on Chinese entities seeking to reduce their tax liabilities through overseas investments further compounded the challenge.
Additionally, new regulations restricting VIP travel groups from operating in Macau—a preferred gambling destination—has also impacted the Chinese casino-going market.
However, the incorporation of a Genting-backed casino could revitalize the economic prospects of Forest City. As the casino landscape in Macau continues to alter, high-end players across Asia may be on the lookout for new locations for their gambling outings. Genting Highlands, predominant home of foreign customers due to Islamic prohibitions on gambling, would present an appealing alternative.
Since Lim Goh Tong obtained Malaysia’s sole casino concession in 1969, Genting has grown to be one of the globe’s leading gaming corporations. In addition to Malaysia and Singapore, Genting operates integrated casino resorts in New York, Las Vegas, the Philippines, Bahamas, and the United Kingdom.
