Genting Malaysia seeks cost cuts to offset tax upsets

Genting Malaysia has been forced into cost cutting mode to offset the negative impact of recent tax rulings, though analysts still expect 2019 to be another tough year for the country’s only operator. In addition to an unexpected tax hike in last year’s budget, the company also recently dropped an appeal against changes to a tax incentive scheme to develop its Genting Integrated Tourism Plan (GITP), which will lead to higher tax rates for the group. Chairman Tan Sri Lim Kok Thay has taken the lead, saying he will take a 20 percent pay cut to mitigate the impact of the tax increases. Last year Tan Sri was paid MYR93.5 million and the reduction will save the company MYR18.7 million, according to Maybank analyst Samuel Yin Shao Yang. The savings would be MYR12.4 million if he takes that cut to his cash earnings, without bonuses. “Either way, the cost savings to GENM will...

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