Malaysia explores casino development in Forest City with Berjaya, Genting Group?

Jenny Ortiz April 25, 2024

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Malaysia explores casino development in Forest City with Berjaya, Genting Group?

Malaysia is currently engaged in discussions with Berjaya and Genting Group regarding the possibility of establishing a casino in Forest City, located in Johor, a state located south of the country?and known for beaches and rainforest. ?

Forest City, often referred to as the nation’s ‘ghost city,’ was initially unveiled in 2006 as part of a 20-year development project funded by a consortium of primarily mainland Chinese real estate developers.

Key players and investments?

The massive $100 billion (€93.5 billion) property project, which also involves the nation’s monarch as a shareholder, has garnered attention from Malaysian Prime Minister Anwar Ibrahim. A recent Bloomberg report said that Prime Minister Anwar Ibrahim held preliminary discussions with Vincent Tan, the founder of Berjaya Corp, and Lim Kok Thay from Genting Group regarding the proposed casino venture.

Uncertainties amid majority Muslim population?

Despite the discussions, uncertainties loom over the potential project due to Malaysia‘s predominantly Muslim population and cultural aversion to gambling. The Muslim-majority nation’s stance on gambling presents a significant hurdle to the establishment of a casino, raising questions about the feasibility of the proposed venture.

Royal involvement and political landscape?

Notably, the country’s King holds a substantial stake of over 20 percent in the Forest City joint venture, which is overseen by developer Country Garden. Additionally, King Ibrahim has interests in Berjaya Assets Bhd, while his daughter serves as the Chair of Berjaya Corp. King Ibrahim recently ascended to the throne in January, adding complexity to the political landscape surrounding potential developments in Forest City.

Future implications?

If the discussions lead to concrete agreements, the establishment of a casino in Forest City would mark Malaysia’s second-ever casino licence. However, the project’s realization hinges on navigating cultural sensitivities, regulatory considerations, and political dynamics within the Southeast Asian country.

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