Malaysia has engaged in preliminary talks with billionaires to open a casino in the USD100 billion Forest City development near Singapore, according to sources who asked to remain anonymous due to the matter’s sensitivity.
According to Bloomberg’s sources, Prime Minister Anwar Ibrahim met last week with Vincent Tan, a founder of Berjaya Corporation, and Lim Thay, a member of Genting Group.
However, the same sources noted the talks are at an early stage, and it remains unclear how committed Anwar is to the proposal. Such a move could potentially lead to backlash in a predominantly Muslim country, where gambling is prohibited.
Prime Minister Anwar, along with senior government officials and business leaders, convened for discussions and a lunch meeting to explore the potential issuance of Malaysia’s second-ever casino license.
King Ibrahim, a billionaire businessman and shareholder in the Forest City project, controls more than 20% of the joint venture with Country Garden, the master developer of Forest City.
However, Prime Minister Anwar yesterday clarified to the press that there is no plan to license a casino in the development, dismissing the reports that he was considering the idea as “a lie”.
Also, a spokesman for Berjaya said the company was not aware of the conversation, while the National Palace, as cited in media reports.
Forest City has struggled to attract residents from China and elsewhere, thwarted by a litany of hurdles including political resistance in Malaysia, a Chinese government crackdown on citizens buying real estate overseas, and the Covid-19 pandemic.
The establishment of a new gambling hub in Malaysia could potentially generate significant revenue for the government.
A brokerage in Singapore noted that the current casino in Malaysia generated up to 5 billion rupiah (USD1 billion) a year prior to the pandemic.
The gaming industry is highly regulated, and casino licenses need to be renewed every three months, with the finance minister, currently Prime Minister Anwar, having the final say on whether or not to renew them.
Both Lim and Tam are two of the most influential business figures in Malaysia.
Genting, of which Lim is a member, also manages casinos in various countries such as Singapore, the US, and the UK. Meanwhile, Tan is engaged in a wide range of businesses including real estate development and the operation of well-known brands like 7-Eleven and Starbucks in Malaysia.
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