The Malaysia and Singapore gaming sectors are poised for robust recovery in the second half of 2024, driven by increased tourist arrivals and regulatory developments, Hong Leong Investment Bank Research (HLIB Research) estimates.
According to a report by The Star, the research house maintained an ‘overweight’ stance on the sector, citing the restoration of global flight capacity and the visa-free-travel pact between China and both Malaysia and Singapore as key factors supporting the optimistic outlook.
‘We anticipate continued earnings recovery for Genting Singapore Ltd and Genting Malaysia Bhd in 2H24 and beyond – and thus benefiting Genting Bhd – driven by the ongoing rebound in tourist numbers,’ it noted.
Malaysia aims to achieve foreign-tourist arrivals of 27.3 million in 2024 versus 20.1 million in 2023, while Singapore is hoping to see about 15 to 16 million visitors this year against 13.6 million in 2023.
HLIB Research also highlighted the recent High Court ruling that the Kedah government’s decision to cease issuing and renewing business licenses for gaming operators is unconstitutional, reducing the risk of similar closures in other states.
The research house expects Sports Toto Bhd’s number forecast operator segment to normalize in the fourth quarter ending June 30th, 2024, after benefiting from seasonally stronger sales in the previous quarter.
