Analysts: tax increases will not affect the casino of Malaysia

22 October 2018

The Malaysian government wants to revise taxation, which was last changed in 1998, when the rate increased from 22% to 25%.

At least one casino operator, according to experts, will not suffer from an increase in the tax rate.

Two research companies, Maybank Kim Eng Research and Nomura International, said this week that Genting Malaysia is in a fairly strong position, and the increase in tax rate will not affect the operator's profit.

However, after the news of the tax increase, Genting, which manages Resorts World Genting in Malaysia, almost immediately felt the consequences: the company's shares fell in price by 9%.

Experts explained the fall in stock prices by the fact that rumors about a possible increase in taxes did not take into account the potential for growth in company revenues.

Meanwhile, Resorts World Genting is planning an expansion. It is expected that during the first six months of 2019, two theme parks will be opened in the resort - 20th Century Fox World and Skytropolis. As part of the project, another 1,500 hotel rooms will be presented, as well as new recreational facilities and restaurants.

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