Morgan Stanley expects Singapore’s two integrated resort operators—Genting Singapore (GENS) and Marina Bay Sands (MBS)—to continue investing heavily in the next phase of development, projecting higher revenues and profitability as a result.
The forecast is part of a recent comprehensive industry report, as Singapore prepares to mark its 60th anniversary in August.
According to the report, Singapore’s gaming sector has demonstrated resilience and high margins since the launch of the city-state’s integrated resorts in 2010. Developed by global gaming giants Las Vegas Sands and Malaysia’s Genting Group, the initial SG$14 billion ($10.6 billion) investment benefited from favorable tax policies and stable regulatory conditions. The two operators have since generated a combined $30 billion in EBITDA as of December 2024.
Despite competition and regulatory changes—including a 3 percent increase in gaming tax rates and a 2 percent hike in goods and services tax—the operators are committed to investing an additional $14 billion over the next five years. This would bring total sector investment to approximately $30 billion. While these capital commitments are expected to slightly compress return on invested capital in the near term, Morgan Stanley remains bullish on long-term growth.
‘We expect GENS and MBS to continue to invest in the next phase and see higher revenue/profit from those investments,’ the report noted.
The Singapore model has served as a benchmark in Asia, balancing economic gain with responsible gaming oversight. According to Morgan Stanley, the integrated resorts contribute around 1.5 percent of Singapore’s GDP, support 22,000 direct jobs, and underpin another 40,000 positions in related sectors. At the same time, the sector has significantly boosted tourism and created iconic urban landmarks such as Marina Bay Sands.
Singapore’s fundamentals shield it from regional competition
Singapore’s strong fundamentals and international appeal may allow it to maintain its relevance in the global gaming market, even as new regional entrants such as Japan and (potentially) Thailand prepare to launch integrated resorts. Morgan Stanley highlights the city-state’s stable regulatory framework, premium destination status, and robust infrastructure as key factors that continue to position Singapore as a preferred hub for both business and leisure travelers.
While regional competition is intensifying—particularly from the Philippines and Cambodia—Singapore has demonstrated resilience. The Philippine gaming market has grown steadily, with Entertainment City now hosting four licensed operators and generating over $4 billion in gross gaming revenue (GGR). Cambodia has also capitalized on Singapore’s ban on junkets and online gaming, capturing more business in the VIP and online segments.
Despite this, Morgan Stanley noted that Singapore’s gaming industry has remained stable, supported by a strong post-COVID rebound that has outpaced both the Philippines and Cambodia. The city-state continues to attract high-net-worth individuals and international tourists, contributing to sustained demand for its integrated resorts.
The research team expects this trend to support long-term growth for both Genting Singapore and Marina Bay Sands as they enter the next phase of development and increase capital investment.
In the coming years, Japan and Thailand are seen as potential competitors, but their integrated resorts are unlikely to become operational before 2030. While a significant portion of their business will likely rely on local and mainland Chinese customers, Thailand’s geographical proximity poses a more immediate challenge. Still, Singapore’s proven track record, high-value visitor base, and consistent policy environment are likely to preserve its standing in the region.
