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Business Times
7 days ago
- Business
- Business Times
Genting's trek from hilltop casino to multibillion dollar global conglomerate
[SINGAPORE] Many know the Genting Group only for its hotels and casinos, yet its businesses have mushroomed to straddle plantations, energy, and biotechnology businesses across the world. What started off as a hilltop casino in Malaysia's Genting Highlands is today a conglomerate which includes Genting Plantations, Genting Singapore, Genting Energy and Resorts World Las Vegas. Beginnings The Genting Group was founded in 1965 when the late Lim Goh Tong built a mountaintop resort in what is now known as Genting Highlands. In 1971, Genting Highlands Hotel was publicly listed in Malaysia with the addition of the first hotel, now known as Theme Park Hotel. A decade on, the 18-story Genting Hotel officially opened. Now known as Genting Grand, it was the flagship hotel in the Genting Highlands complex. The expansion of the mountaintop resort continued, with subsequent openings of the Awana Genting Highlands Golf & Country resort in 1985; the launch of Resort Hotel and indoor theme park in 1992; the Genting outdoor theme park in 1994 and the 3.38 km Genting Skyway cable car to the hilltop in 1997. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The largest expansion came in 2006 with the First World Hotel – which scored a first when it was declared the 'World's Largest Hotel' by Guinness World Records in 2006 with its 6,118 rooms. Going international Just four years later, Genting expanded its tourism business overseas for the first time. It opened Resorts World Sentosa (RWS) in Singapore, with the Universal Studios Singapore as its star attraction. The Maritime Experiential Museum was added to RWS a year later in 2011; the SEA Aquarium Sentosa and Adventure Code Waterpark opened in 2012 and the Trickeye Museum in 2015. At the same time, the fast-expanding Genting brand pushed into the developed markets with the opening of Resorts World Casino New York City in 2011. The entertainment hub was the leading gaming operator in the north-east US market. Resorts World Birmingham in the United Kingdom and Resorts World Bimini in the Bahamas followed in 2013. Nearer home, Genting opened Resorts World Jeju in South Korea and Resorts World Las Vegas shortly after in 2015. Another breakthrough was made two years later with Crockfords Cairo casino in Egypt in 2017, its first project in the Middle East. Today, Genting's leisure and tourism arm spans 11 Resort World properties and three mega resorts in Malaysia, Singapore and Las Vegas. The group comprises holding company Genting and its listed subsidiaries Genting Malaysia, Genting Plantations and Genting Singapore, as well as wholly owned subsidiary Genting Energy. Genting Malaysia and Genting Plantations reported 2024 earnings of RM200 million (S$60.5 million) and RM335 million on revenues of RM10.9 billion and RM3 billion, respectively. Here, Genting Singapore's profit for the first quarter ended Mar 31 tumbled 41 per cent to S$145 million, which the company blamed on a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovation. A multi-layered conglomerate Expansion and diversification into plantations Genting Group's expansion beyond its resorts began with the incorporation of Asiatic Development in 1977, which became a wholly owned subsidiary of Genting Group in 1980, spearheading its plantation activities and investments. In 1982, Asiatic Development was converted to a public company, subsequently expanding into oil palm plantations in West Kalimantan, Indonesia in 2005 and developing genomics-based solutions to improve crop productivity in 2006. Subsequently, it expanded into Indonesia by acquiring land in West Kalimantan Indonesia in 2008 before the company was renamed Genting Plantations. Presently, Genting Plantations is also involved in downstream manufacturing, property and AgTech, its research and development arm for crop efficiency. Expanding into oil and gas industries In 1996, Kuala Langat power plant commenced operations while Genting Group formed a new group, Genting Oil & Gas, now known as Genting Energy to explore for gas in Indonesia. After the late Lim Goh Tong handed over the chairmanship of Genting Group and its companies to his son Lim Kok Thay in 2003; Genting Energy ventured into China with the acquisition of power plants in Fujian and Jiangsu provinces in 2005. The Jangi Wind Farm in Gujarat, India took off in 2011, marking the group's entry into India and wind energy, before their subsequent discoveries of gas in Indonesia, opening the Banten power plant in Java, Indonesia in 2013. Along with its expansion, Genting Energy took environment friendly steps, commissioning the Jambongan Oil Mill in Malaysia in 2014, which was Malaysia's first zero waste discharge oil mill. In light of the environmental concerns, they also collaborated with US-based Elevance Renewable Sciences to establish Malaysia's first metathesis plant as a greener and more sustainable process for generating energy efficiently in power plants.
Business Times
16-06-2025
- Business
- Business Times
Genting's trek from hilltop casino to multi-billion dollar global conglomerate
[SINGAPORE] Many know the Genting Group only for its hotels and casinos, yet its businesses have mushroomed to straddle plantations, energy, and biotechnology businesses across the world. What started off as a hilltop casino in Malaysia's Genting Highlands is today a conglomerate which includes Genting Plantations, Genting Singapore, Genting Energy and Resorts World Las Vegas. Beginnings The Genting Group was founded in 1965 when the late Lim Goh Tong built a mountaintop resort in what is now known as Genting Highlands. In 1971, Genting Highlands Hotel Bhd was publicly listed in Malaysia with the addition of the first hotel, now known as Theme Park Hotel. A decade on, the 18-story Genting Hotel officially opened. Now known as Genting Grand, it was the flagship hotel in the Genting Highlands complex. The expansion of the mountaintop resort continued, with subsequent openings of the Awana Genting Highlands Golf & Country resort in 1985; the launch of Resort Hotel and indoor theme park in 1992; the Genting outdoor theme park in 1994 and the 3.38km Genting Skyway cable car to the hilltop in 1997. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The largest expansion came in 2006 with the First World Hotel - which scored a first when it was declared the 'World's Largest Hotel' by Guinness World Records in 2006 with its 6,118 rooms. Going international Just four years later, Genting expanded its tourism business overseas for the first time. It opened Resorts World Sentosa in Singapore, with the Universal Studios Singapore as its star attraction. The Maritime Experiential Museum was added to RWS a year later in 2011; the S.E.A Aquarium and Adventure Code Waterpark opened in 2012 and the Trick Eye Museum in 2015. At the same time, the fast-expanding Genting brand pushed into the developed markets with the opening of Resorts World Casino New York City in 2011. The entertainment hub was the leading gaming operator in the north-east US market. Resorts World Birmingham in the United Kingdom and Resorts World Bimini in the Bahamas followed in 2013. Nearer home, Genting opened Resorts World Jeju in South Korea and Resorts World Las Vegas shortly after in 2015. Another breakthrough was made two years later with Crockfords Cairo casino in Egypt in 2017, its first project in the Middle East. Today, Genting's leisure and tourism arm spans 11 Resort World properties and three mega resorts in Malaysia, Singapore and Las Vegas. The group comprises holding company Genting Bhd and its listed subsidiaries Genting Malaysia Bhd, Genting Plantations Bhd and Genting Singapore, as well as wholly owned subsidiary Genting Energy. Genting Malaysia and Genting Plantations reported 2024 earnings of RM200 million and RM335 million on revenues of RM10.9 billion and RM3 billion respectively. Here, Genting Singapore's profit for the first quarter ended Mar 31 tumbled 41 per cent to S$145 million, which the company blamed on a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovation. A multi-layered conglomerate Expansion and diversification into plantations Genting Group's expansion beyond its resorts began with the incorporation of Asiatic Development in 1977, which became a wholly-owned subsidiary of Genting Group in 1980, spearheading its plantation activities and investments. In 1982, Asiatic Development was converted to a public company, subsequently expanding into oil palm plantations in West Kalimantan, Indonesia in 2005 and developing genomics-based solutions to improve crop productivity in 2006. Subsequently, it expanded into Indonesia by acquiring land in West Kalimantan Indonesia in 2008 before the company was renamed Genting Plantations. Presently, Genting Plantations is also involved in downstream manufacturing, property and AgTech, its research and development arm for crop efficiency. Expanding into oil and gas industries In 1996, Kuala Langat power plant commenced operations while Genting Group formed a new group, Genting Oil & Gas, now known as Genting Energy to explore for gas in Indonesia. After the late Lim Goh Tong handed over the chairmanship of Genting Group and its companies to his son Lim Kok Thay in 2003; Genting Energy ventured into China with the acquisition of power plants in Fujian and Jiangsu provinces in 2005. The Jangi Wind Farm in Gujarat, India took off in 2011, marking the group's entry into India and wind energy, before their subsequent discoveries of gas in Indonesia, opening the Banten power plant in Java, Indonesia in 2013. Along with its expansion, Genting Energy took environment friendly steps, commissioning the Jambongan Oil Mill in Malaysia in 2014, which was Malaysia's first zero waste discharge oil mill. In light of the environmental concerns, they also collaborated with US-based Elevance Renewable Sciences to establish Malaysia's first metathesis plant as a greener and more sustainable process for generating energy efficiently in power plants.
Business Times
01-06-2025
- Business
- Business Times
Malaysian tycoons tap Indonesia's digital and logistics boom
[JAKARTA, KUALA LUMPUR] They made fortunes in palm oil, resorts and retail. Now, some of Malaysia's prominent tycoons, including Wilmar's Robert Kuok and Genting Group's Lim Kok Thay, are quietly funnelling serious money into Indonesia's digital and logistics sectors. It is not a new play but a strategic one, reflecting how Malaysian money is chasing South-east Asia's biggest economy, where clicks are starting to matter more than commodities. Malaysian investors have poured some US$905 million into Indonesia's digital space so far, with deal activity peaking in 2023 at US$229 million – even higher than the pandemic-era surge of US$214 million in 2021, data from startup intelligence platform Tracxn showed. 'The post-Covid recovery and structural demand shifts are driving sustained activity,' said Neha Singh, co-founder and chief executive officer of Tracxn. She added: 'Despite global headwinds, Malaysia's interest in Indonesia's digital sector has only grown stronger.' From commodities to clicks For decades, Malaysian capital poured into Indonesia's abundant natural resources, from palm oil estates in Kalimantan to mining ventures in Sumatra. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Many struck it rich. Tycoons such as Robert Kuok and Lim Kok Thay turned raw commodities into profit engines, cementing their place further among Malaysia's wealth elite. Other Malaysian players, from logistics outfits to venture-backed startups, have also expanded their footprint in Indonesia's digital economy. As Indonesia's 280 million-strong population grows more urbanised, tech-savvy and digitally connected, the nature of consumption and investment is changing. Malaysia's business elites have taken note. Indonesia's digital economy presents a compelling opportunity for Malaysian investors, driven by several strategic advantages, noted Tracxn's Singh. 'The two countries share close geographical proximity, cultural similarities and strong diplomatic ties – all of which make cross-border business engagement more seamless,' she said. Jerry Goh, investment director of Asian equities at Aberdeen, notes that Indonesia's expanding middle class and rising purchasing power are laying a solid foundation for long-term growth in digital commerce. 'This shift is fuelling stronger consumer spending, particularly within the digital economy,' he said. The rapid growth of smartphone adoption and Internet connectivity has significantly expanded Indonesia's online consumer base – particularly in the gaming sector, which is valued at an estimated US$2 billion, indicated the country's Ministry of Communication and Digital Affairs. Sensing long-term potential, Genting's Lim – who is credited for growing the family-controlled business empire into a global casino and leisure giant – has made a strategic play through investment arm Genting Ventures by backing Jakarta-based Evos Esports – one of South-east Asia's top online gaming platforms. The venture firms also took part in a US$6.2 million funding round for Eratani, an Indonesian agri-tech startup, capitalising on the rising momentum of digital transformation in the country's agriculture sector. Jeffrey Cheah, founder of Malaysian conglomerate Sunway Group, has also broadened his regional footprint through venture capital, teaming up with Jakarta-based investment firm Kejora Capital to launch the Orbit Malaysia Fund, an investment vehicle aimed at supporting startups across South-east Asia, with Indonesia as a key focus. Beyond market size As South-east Asia's largest automotive market, Indonesia remains a pivotal growth engine for Carsome, Malaysia's biggest used car platform, which has been operating in the country since 2017. Carsome is backed by businessman Patrick Grove, the billionaire behind Catcha Group and iflix. Grove ranked 48th on Forbes' list of Malaysia's richest individuals in 2025, with a net worth of US$345 million. Eric Cheng, Carsome's co-founder and chief executive officer, says that the company's expansion into Indonesia was driven by more than just its market size. PHOTO: CARSOME Eric Cheng, co-founder and CEO of Carsome Group, emphasised that the company's expansion into Indonesia was driven by more than just its market size. 'Indonesia's growing appetite for used vehicles, alongside a rising preference for digital-first experiences, made it a natural next step in our regional expansion,' he told The Business Times. While macroeconomic challenges and a softer automotive market in 2024 have weighed on the broader industry, Cheng said that Carsome is using this period to strengthen its operations in the country. 'We will be re-investing with more precision, buying the right inventory, improving unit economics and applying learnings from our turnaround in Malaysia,' he noted. Warehousing: new goldmine Experts view Indonesia's booming digital storefront sector as a key driver of long-term growth for the delivery and logistics industry. Gary Tan, portfolio manager for the intrinsic emerging markets equity team at Allspring Global Investments, said the growing demand for fast and reliable shipping has significantly boosted the valuations of supply chain companies – making them increasingly attractive to equity investors and reflecting strong confidence in the sector's long-term prospects. This is where many Malaysian investors are making early, strategic moves. They are not just backing consumer-facing digital ventures, but also investing in the physical infrastructure essential to powering South-east Asia's digital evolution. Wilmar's Kuok, for instance, made an early move into Indonesia's logistics space through Kerry Logistics, where he holds a significant stake. In 2015, Kerry entered a joint venture with local player Puninar Logistics, tapping the country's fast-growing logistics sector, with a strategic focus on inter-island distribution. Kuok topped Forbes Malaysia's 50 richest list in 2024 with an estimated net worth of US$11.8 billion. Mr DIY store in Jakarta. The Malaysian home improvement retailer has been ramping up its expansion in Indonesia following the IPO of its local unit at the end of last year. PHOTO: ELISA VALENTA, BT Meanwhile, Malaysian home improvement retailer Mr DIY – owned by tycoon brothers Tan Yu Yeh and Tan Yu Wei, and their family – has been ramping up its expansion in Indonesia following the initial public offering of its local unit at the end of last year. To support the roll-out of hundreds of new stores in second-tier cities, the company has built a nationwide network of warehousing hubs in partnership with local logistics firms – including one of its largest facilities in Marunda, North Jakarta. Since entering the market in 2017, Mr DIY has rapidly grown to nearly 900 branches nationwide, including in underserved regions. Jai Mirpuri, head of South-east Asia at real asset management group ESR, emphasised that Indonesia's growing automotive sector, particularly in electric vehicles, has attracted significant investments into manufacturing, assembly, and storage space requirements. This further boosts the demand for modern logistics real estate in the country. 'We see attractive investment opportunities in modern warehouses and even data centres that support the broader digital economy,' he said. Geographically complex Despite strong enthusiasm, Indonesia's burgeoning digital economy faces significant challenges. Industry players acknowledged that building efficient logistics networks across an archipelago of more than 17,000 islands is akin to threading a needle. Outside Java and Sumatra, low order density and high transportation costs create logistical headaches. 'Order fulfilment becomes expensive in remote regions. Logistics providers are under pressure to cut costs, especially in a cash-on-delivery environment,' said Swati Chopra, executive director, emerging markets equity, at investment manager Franklin Templeton. 'This requires deep pockets and a long-term view.' Cheng from Carsome noted that Indonesia's vast geography added another layer of complexity, creating supply chain fragmentation and delivery inefficiencies. 'While digital adoption is rising, we quickly learnt that many consumers still prefer face-to-face interactions when buying cars. This required us to complement our digital model with strong on-the-ground engagement to build trust and deliver the experience customers expect.' Cut-throat competition Indonesia's e-commerce sector, while brimming with potential, is among the most fiercely contested in South-east Asia, with both local and international players vying for market share. Indonesia's e-commerce sector is highly polarised, with Shopee and Tokopedia controlling about 71% of the 2022 gross merchandise value. PHOTO: YEN MENG JIIN, BT The market is highly polarised, with Shopee and Tokopedia controlling about 71 per cent of the 2022 gross merchandise value, leaving other platforms to compete for a much smaller share of the market. Indonesia has witnessed the permanent closure of more than a dozen marketplaces, including some that existed before the Covid-19 pandemic. Major players such as Elevania and – China's JD Indonesia unit – have officially shuttered in recent years, with closing its operations in March 2023 after a period of gradual downsizing. Franklin Templeton's Chopra highlighted that with price-sensitive consumers and intense competition, digital marketplaces must invest heavily in user acquisition and retention. This makes long-term survival and growth especially challenging for both new entrants and some established players. 'In the short term, profitability may remain limited due to fierce competition, so patience is essential. We expect further industry consolidation, resulting in larger, stronger and better-capitalised players,' she said.
