Visa-free entry for Chinese citizens may have a negligible impact on Malaysia’s gaming industry, according to a Maybank analyst.
In a reply to AGB, Samuel Yin Shao Yang, an associate director at Maybank Investment Bank, notes that Malaysia’s decision to grant visa-free entry to Chinese citizens, despite the government’s enthusiasm to boost tourism and the economy, may not be the catalyst for the Malaysian gaming sector’s growth.
The Maybank analyst points out that Chinese visitors constituted a mere 4 percent of Resorts World Genting’s total arrivals in 2019. The overwhelming majority, approximately 85 percent, were from local and Singaporean markets, making the expected surge in Chinese tourists seem inconsequential to the gaming giant.
Malaysian Prime Minister Anwar Ibrahim announced on Sunday that citizens of China and India will enjoy visa-free entry into Malaysia. According to him, this initiative is a strategic measure aimed at enhancing tourism and fostering economic growth.
The move follows the Chinese government’s announcement of a visa exemption for Malaysian citizens from December 1st to November 30th, 2024.
Resorts World Genting, operated by Genting Malaysia Bhd, is the only licensed casino property in the nation, as it has been maintaining a positive outlook for international tourism, citing expected improvements in regional airline capacity and connectivity.
Genting Malaysia Bhd reported a 3Q23 net profit attributable to shareholders of MYR 177.4 million ($37.9 million), compared to a profit of MYR 11.4 million in the prior year period. Judged sequentially, net profit was up 276.6 percent.
