JOHOR BARU – Responding to allegations making the rounds on the internet, the Sim Leisure Group clarifies that sovereign wealth fund Khazanah Nasional Bhd was never involved in negotiations for Kidzania’s Singapore assets, and instead dealt with liquidators directly.
In a press statement today, Sim Leisure Group explained that their takeover of Kidzania Singapore for S$110,000 (RM378,957) began towards the end of 2020, at the height of the Covid-19 pandemic, and they were also in the process of negotiating a lease for the facility the last two years with Sentosa Development Corporation.
Last week, The Vibes reported that Khazanah and Boustead Holdings Bhd, through subsidiary Rakan Riang Pte Ltd, is believed to have invested S$48 million (RM165 million) into the Kidzania project, which later went into liquidation after suffering heavy losses.
Its non-movable assets were acquired by the Sim Leisure Group for pennies on the dollar.
The theme park operator explained that its bid for these assets was risky, as dealings with the liquidator of Rakan Riang took place during the lockdown and Sim Leisure Group could not perform physical checks.
“Khazanah was never in the process – all of Sim Leisure Group’s dealings were through the liquidator.
“At that point in time, such a bid would be considered high risk for the company,” the statement said.
No experience, no expertise
Meanwhile, Sim Leisure Group founder and chairman Datuk Sim Choo Kheng explained that although there were criticisms pertaining to the company’s taking over of the failed assets in Kidzania Singapore, he reminded the public that other failed theme park investments such as the Movie Animation Park Studios in Ipoh ended up as scrap metal.
Commenting further, Sim pointed out that investors in the region lack the experience and expertise to operate in the highly specialised industry, drawing the analogy that companies entering into the business is akin to a person who has done first-aid training trying to be a heart surgeon.
“Most theme park investors are real estate developers, gaming operators and governments with good intentions to catalyse real estate, with most of them cross-subsidising the attraction business.
“At Sim Leisure Group, we live, eat and breathe theme parks; it is all we do, so every business we develop and operate must stand on its own and be profitable from day one.
“It’s not all about buying equipment or engaging IP owners or foreign experts. These are actually the main reasons they fail,” Sim said.
On Friday, responding to reports, Khazanah explained that it did not sell the discontinued Kidzania to Sim Leisure Group for RM378,957.
Instead, they clarified that the theme park operator purchased all non-movable assets from the liquidator and negotiated a franchise licence with Kidzania Mexico.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said on the same day that he will hold talks with Khazanah over their failed ventures into Kidzania theme parks.
Khazanah’s exit from Kidzania is not limited to Singapore, as their children-centric theme park in Kuala Lumpur, Kidzania Malaysia suffered a similar fate in 2020.
In 2020, after Khazanah and Boustead Holdings were believed to have initially invested RM90 million into Kidzania Malaysia four years earlier, it was sold to Sim Leisure Group for a mere RM3.8 million. – The Vibes, June 19, 2023
