PAS's Bold Move: Closing Malaysia's Only Casino Sparks Debate
Malaysia's Islamic Party vows to shutter Genting Casino
In a bold move, the Islamic Party of Malaysia (PAS) has declared their intention to shut down the country's solitary casino should they seize power in Pahang, home to the gambling establishment. This announcement has ignited a contentious debate, involving religion, politics, and economic repercussions.
PAS's Casino Shutdown Plan
PAS's initiative to shutter the Genting Highlands casino is grounded in their allegiance to Islamic principles. PAS's Pahang vice-commissioner, Mr. Andansura Rabu, voiced his conviction that gambling defies the teachings of the Quran, arguing that it's harmful to society. However, he conceded that legal and constitutional considerations must guide this decision.
Rabu candidly stated, "Gambling is harmful, and we want to close it, but that must be done in compliance with the law and the Constitution. In Genting Highlands, our authority may not be absolute, needing a decision from the federal government, so perhaps we can't implement the plan."
This proposal has evoked disparate responses. Proponents commend PAS for aligning its stand with Islamic values and advocating for moral governance. Detractors, however, caution against potential economic implications and possible political overreach.
Gambling Regulations in Malaysia
In Malaysia, gambling is tightly regulated, with vigilant government oversight of casino operations. The nation maintains a prudent outlook on gaming, balancing financial returns with social and religious concerns.
Genting Highlands, located in Pahang, accommodates Malaysia's lone casino. Prior to the pandemic, the casino boosted government coffers with up to US$1.5 billion annually. The substantial economic impact of closing the casino further complicates this proposal.
In 2024, Prime Minister Anwar Ibrahim quashed the prospect of inauguring a second casino resort, indicating the federal government's cautious stance regarding gambling expansion.
The potential casino shutdown might bring forth substantial economic ramifications for Pahang and Malaysia. The considerable revenue contribution of the casino to the government and local economies creates uncertainty regarding the state's capacity to offset financial losses.
The Economic Repercussions of Closing the Casino
Obliteration of Sizable Revenue Stream
- Genting Highlands' casino play a vital role in Malaysia's gaming revenue, with Resorts World Genting registering approximately €1.3 billion in revenue in 2023. This accounted for a substantial portion of Genting Malaysia's total revenue of €2.3 billion in 2024[3].
- Genting Highlands casinos generate month-to-month revenues between $5 million and $15 million[1]. Eradicating this source of income could thus have a significant financial consequence.
Tourism Dip
- The casino draws millions of tourists, including Indonesians (3.65 million visited Malaysia in 2024), significantly bolstering Malaysia's tourism sector.
- Malaysia's tourist sector is forecasted to undergo robust growth over the ensuing decade, from USD 3.6 billion in 2025 to nearly USD 11.9 billion in 2035, with casinos serving as a crucial enticement for international visitors[5].
- Closing the casino may lead to reduced tourist inflows, particularly heavy-spending visitors who frequent gaming and entertainment, potentially impairing related sectors like hospitality, retail, and entertainment.
Joblessness and Financial Challenges
- Genting Highlands supports thousands of jobs directly in gaming operations and indirectly in hotels, restaurants, transport, and retail outlets. Closing the casino could precipitate mass unemployment and economic hardship in the region.
Economic Struggles for Genting Malaysia
- Genting Malaysia recently assumed substantial financial obligations, such as acquiring full control of Empire Resorts, escalating its borrowings to €2.3 billion[2][4]. The shutdown of their flagship casino could aggravate the company's financial predicament, possibly prompting credit rating downgrades or losses.
- Genting Malaysia posted a loss before tax of €368.2 million recently, underscoring existing financial stresses that could be exacerbated by the casino's closure[2].
Wider Economic Perils
- The casino industry's closure might deter foreign direct investment and hinder Malaysia's competitive edge in Southeast Asia's tourism and entertainment sectors.
- With Malaysian reliance on regional connectivity and tourism, any decrease in casino-related tourism could reverberate into broader economic slowdowns, especially in areas reliant on tourism income[5].
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- The proposal by PAS to close the Genting Highlands casino has sparked debates surrounding the economic implications, with concerns about potential job losses and financial struggles for Genting Malaysia, a company that heavily relies on the casino's revenue.
- As the casino contributes significantly to Malaysia's gaming revenue, the political debate also involves considerations of general news, such as the potential impact on the nation's tourism sector and foreign direct investment, as well as the broader economic ramifications for the region.
