TALKS are under way to open a casino in Forest City, Johor, to revive the stalled project that that has the king as one of its shareholders.
Sources familiar with the matter told Bloomberg that Prime Minister Datuk Seri Anwar Ibrahim has met Berjaya Corporation founder Tan Sri Vincent Tan and Genting Group’s Tan Sri Lim Kok Thay to discuss the deal.
They said Yang di-Pertuan Agong Sultan Ibrahim Sultan Iskandar was also represented at the meeting.
However, talks are still in the preliminary stage. It’s unclear how seriously Anwar is taking the idea, which could cause a backlash in the Muslim-majority nation where gambling is frowned upon.
A casino would be a boost for Forest City, the sprawl of high-rise condominiums built on reclaimed land by Chinese developer Country Garden Holdings Co.
Anwar, senior government officials and the businessmen had lunch and meetings on the possibility of granting what would only be Malaysia’s second-ever casino licence.
Country Garden is keen to have a casino at the development, sources with knowledge of the matter said.
A spokesman for Berjaya, however, said the company isn’t aware of any chats between Anwar and Tan on the development of a casino in Forest City.
The Prime Minister’s Office, Istana Negara, Country Garden, and Genting Group did not respond to requests from Bloomberg for comment.
Gaming is one of the most regulated sectors in Malaysia and a casino licence is to be renewed every three months at the discretion of the finance minister, which is helmed by the prime minister.
But a new gambling hub would generate revenue for the government. The country’s sole casino contributed up tp RM5 billion a year to the government’s coffers before the pandemic, according to a report by UOB Kay Hian, a Singapore-based brokerage.
Forest City is built on land near Singapore, which is linked to Johor by bridge. The city-state agreed with Malaysia in January to jointly develop a special economic zone in the state to boost trade between the two neighbours. Having a casino in Johor would also appeal to Singaporeans.
Once China’s largest developer by sales, Country Garden has become one of the biggest casualties of the nation’s real estate crisis.
The company recently warned it will miss a deadline for reporting annual results, causing its shares to be suspended from trading in Hong Kong. – April 25, 2024
