The Malaysian operations of Genting Malaysia Bhd should “turn around after the second quarter” this year, but the “drag” on the group caused by an associate, Empire Resorts Inc – which runs Resorts World Catskills, in upstate New York in the United States – “needs to be resolved soon,” said a Wednesday note from the Nomura banking group.
While Genting Malaysia’s first-quarter earnings “will likely be impacted due to an approximately one-month closure” of its flagship Resorts World Genting casino resort (pictured) near the Malaysian capital Kuala Lumpur, “second-quarter 2021 onwards should improve, in our view, led by… progress” in the drive to vaccinate consumers around the region against Covid-19, wrote Nomura analysts Tushar Mohata and Alpa Aggarwal.
Lee Choong Yan, president & chief operating officer (COO) of Genting Malaysia, said in a statement that cost-cutting measures like salary reduction are crucial to ensure the sustainability of the company’s business as well as to protect maximum possible number of jobs.
Lee Choong Yan, president & chief operating officer (COO) of Genting Malaysia, said, “We need to control Resort World Genting’s cost base to ensure the sustainability of our business and to help protect as many jobs as possible. Even with the recent availability of vaccines, tourist traffic to RWG (Resorts World Genting) is expected to remain subdued and uncertain in the short term.”
Genting Malaysia asks staff to take further pay cuts on latest COVID-19 impact: report
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Genting Malaysia, operator of Malaysia’s Resorts World Genting, has reportedly asked some employees to undergo further staff pay cuts as it looks to limit the damage from the ongoing COVID-19 pandemic.
According to a report by
Bloomberg, an internal Genting Malaysia memo circulated on Monday 1 March 2021 requests that some employees agree to a temporary pay cut of between 15% and 20% for a period of around three months, until May. Other staff have been asked to take one day of leave each week without pay.
Asian casino operator is reportedly instituting the cost-cutting move in the wake of a second coronavirus-related closure of its Resorts World Genting venue.
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