- Legal States
Mathilde Adam December 29, 2020 3 min read
Genting Malaysia’s RWG Casino Complex Unaffected by Lockdown Order
Malaysian casino resort Resorts World Genting stated it will not be concerned by the country’s EMCO, a lockdown order against the spread of Covid-19.
RWG Not Concerned by Strict Lockdown
Malaysian gambling operator Genting Malaysia Berhad’s Resorts World Genting (RWG), the casino resort at Genting Highlands near the nation’s capital Kuala Lumpur, will not be affected by the government-mandated Enhanced Movement Control Order (EMCO) to minimize the spread of Covid-19, according to a note on the RWG website.
Malaysia has been using four types of lockdown since the beginning of the pandemic, of which EMCO is the strictest. The country has extended the order in the region to Amber Court and Ria Apartments until January 6, 2021. Visits and travels are forbidden and citizens are not allowed outside of their properties. Armed security forces have been deployed in the concerned areas. All businesses must remain closed.
RWG clarified that the gambling and hospitality facilities are not in the affected zone, and therefore not threatened by the lockdown extension.
Rigorous Testing and Screening Protocols
The statement indicated that the first known case of Covid-19 involving an employee of RWG was reported on November 24 this year. The company assured that the required medical attention, quarantine period, and tests were completed by those connected to the worker before resuming their functions.
The operator stated that its safety measures are sufficient to guarantee a safe environment for both guests and workers. “To keep the resort safe”, RWG required that “all employees, including third-party employees and contractors” be tested and screened “on a regular basis”.
Genting Malaysia’s resort, the only gaming property licensed in the country, declared that its coronavirus testing protocols include “antibody and more recently antigen tests on employees” and are in “full compliance with [the Malaysian government’s] standard operating procedures”.
Net Losses in Q3 2020
RWG operations were on hold from March 18 to June 19, as part of Malaysia’s efforts to contain the novel Covid-19. The complex has been operating at reduced capacity since reopening.
The pandemic was tough on the gaming and tourism industries, as both Genting and its unit Genting Malaysia reported their second consecutive quarter resulting in losses. The group reported a net loss of RM130.74 million in the third quarter of the fiscal year against RM305.68 million in net profit in Q3 2019.
Those losses result stem from Genting’s businesses in the UK, Egypt, and the US, which were deeply impacted by temporary and permanent closures and restrictions. Resorts World New York City reopened with reduced capacity on September 9. Genting Malaysia reported an MYR726.3 million net loss for the three months to September 30, 2020.
“Although we believe the worst is over, with full lockdown on economies not likely to recur, earnings are only expected to recover slowly. We reckon the impact of economic fallout on consumer sentiment should continue to affect spending on non-essential and discretionary activities. As such, we think full recovery is more plausible in FY2022 [for Genting Malaysia],” Genting Group said this month.