Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, firmly refutes rumors regarding the consideration of a second casino license in Forest City, Johor. This denial provides clarity amidst speculation surrounding the potential establishment of a new casino.
The Denial and its Context:
Anwar, also serving as the Finance Minister, addressed the media, dismissing the notion of a second casino license. His statement directly contradicted recent reports, including one from Bloomberg, which suggested discussions with prominent figures about establishing a casino in Forest City. This denial follows Anwar’s announcement of the creation of a Special Financial Zone (SFZ) in Forest City aimed at stimulating Johor’s economy and revitalizing the development.
Analysts’ Concerns:
While Anwar’s denial offers clarity, analysts raise concerns about the potential consequences of granting a second casino license. Nomura analysts Tushar Mohata and Alpa Aggarwal highlight the adverse effects on Malaysia’s Genting Group and Singapore’s Marina Bay Sands, warning of potential losses due to proximity and competition.
Potential Impact on Existing Establishments:
Mohata and Aggarwal’s assessment suggests that the proximity of a new casino in Forest City to existing establishments in Singapore could lead to losses for Genting Group, which holds Malaysia’s sole casino license. They caution that both Genting Singapore and Marina Bay Sands might suffer should Malaysia proceed with the plan.
The denial from Prime Minister Anwar Ibrahim brings clarity to the situation surrounding the casino license issue. However, the debate over its potential impact on the region’s gaming industry continues to garner attention from analysts and stakeholders, emphasizing the need for careful consideration and strategic planning in economic development initiatives.