GGRAsia – Dead rail link not issue for Genting Sentosa: Maybank

Dead rail link not issue for Genting Sentosa: Maybank

May 29, 2018 Newsdesk Latest News, Singapore, Top of the deck

Malaysia’s decision to scrap an expensive high-speed rail link between its capital Kuala Lumpur and the neighbouring city-state of Singapore should not have a negative impact on Genting Hotel Jurong, a facility built by Genting Singapore Plc to support its operations at casino venue Resorts World Sentosa (pictured).

So said on Tuesday Samuel Yin Shao Yang, an analyst at Maybank IB Research, in response to an email from GGRAsia.

Genting Singapore had a first-phase opening in April 2015 for the 557-room hotel, located approximately 15.4 kilometres (9.6 miles) from Resorts World Sentosa on the Singapore side of the border. Some commentators queried the decision to build fresh sleeping accommodation so far from the resort and to bring those guests in by bus.

But Mr Yin had pointed out at the time that the location at Jurong Lake was close to the proposed terminal for the rail link, at Jurong East. Many customers of Singapore’s two casino venues – Resorts World Sentosa, and Marina Bay Sands, the latter promoted by Las Vegas Sands Corp – are said to come from neighbouring Malaysia.

Maybank’s Mr Yin told us on Tuesday regarding Genting Hotel Jurong in the aftermath of the rail link cancellation: “I am not overly concerned that it will be a white elephant.”

“Genting Hotel Jurong is located in between the second link bridge [to Malaysia] and Resorts World Sentosa. Many tour buses from Malaysia would pass Genting Hotel Jurong anyway. In short, I think the hotel will still be viable in the long run,” he added.

Malaysia’s 92-year-old prime minister, Mahathir Mohamad – who returned to power in a general election in early May, amid disquiet about the management of the economy under the leadership of his predecessor Najib Razak – said on Monday that the rail link would have cost his country MYR110 billion (US$27.6 billion) and “would not earn us a single cent”.