Genting Singapore’s Strategic Shift: Dissolution of Japanese Subsidiaries
Genting Singapore, the renowned operator behind the Resorts World Sentosa, recently announced a significant corporate shift by placing seven wholly-owned subsidiaries in Japan under voluntary dissolution and liquidation. This development comes approximately three years after the company’s ambitions to establish an integrated resort (IR) in Yokohama were effectively halted.
Background on Genting Singapore’s Japanese Aspirations
In 2019, Genting Singapore was viewed as a frontrunner in the race for a coveted integrated resort license in Yokohama. The company’s established credibility, built on the successful management of Resorts World Sentosa—an IR well-regarded for its regulatory compliance—positioned it favorably against competitors such as Melco Resorts & Entertainment from Macau. Genting’s venture in Japan included a carefully curated consortium composed of reputable local partners such as Sega Sammy Holdings, security experts Sohgo Security Services Co., and three notable Japanese construction giants: Kajima Corporation, Takenaka Corporation, and Obayashi Corporation.
These partnerships reinforced Genting Singapore’s commitment and capacity to deliver a world-class resort experience, tailored to the expectations of both the Japanese authorities and prospective patrons.
The Turn of Events: Cancellation of the Yokohama IR Bid
Despite Genting Singapore’s robust preparations, the landscape dramatically changed in September 2021 when Yokohama’s IR bid process was officially terminated. This decision was heavily influenced by the newly elected mayor, Takeharu Yamanaka, an outspoken critic of integrated resorts. The closure of the local IR office, following the termination of the bidding process, signaled the end of Genting’s aspirations in that locale.
In response, Genting Singapore expressed its disappointment and surprise. The company had devoted substantial time and resources to crafting what it believed to be a compelling bid for an IR that could enhance Yokohama’s tourism and economic landscape.
Financial Implications of the Dissolution
The dissolution of the seven subsidiaries—Acorn Co., Ltd., BlueBell Co., Ltd., Genting Japan Co., Ltd., Genting Tokyo Co., Ltd., Resorts World Japan Co., Ltd., Resorts World Tokyo Co., Ltd., and SunLake Co., Ltd.—is reported to have no significant impact on Genting Singapore’s consolidated net tangible assets or earnings per share. This suggests a strategic decision aimed at streamlining operations and refocusing resources following the shelved IR project.
By liquidating these subsidiaries, Genting is likely aiming to minimize ongoing operational costs and explore more viable prospects for investment and expansion in other markets.
New Horizons: Future Expansion Opportunities
In the wake of the dissolution, Genting Singapore has publicly expressed interest in pursuing opportunities in Thailand, contingent upon the passage of new integrated resort legislation currently under review by the Thai cabinet. This potential shift signals Genting’s adaptability and forward-thinking approach, indicative of its continuous search for expansion in the ever-evolving landscape of the gaming and hospitality sectors.
Conclusion
Genting Singapore’s decision to dissolve its Japanese subsidiaries signals the end of a challenging chapter in its quest for growth in Japan. Despite the disappointment of losing the Yokohama bid, the company appears poised to redirect its ambitions towards new markets, particularly Thailand. As the gaming and tourism industries continue to evolve, Genting’s strategic realignment reflects a resilient approach to navigating a complex global landscape.
As the company prepares for its next chapter, it remains to be seen how these shifts will impact its operations and contributions to the gaming sector in the Asia-Pacific region.
