Genting Berhad: The Story of a Malaysian Conglomerate


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Case Details:

Case Code : BSTR108
Case Length : 22 Pages
Period : 1964 – 2004
Organization : Genting Berhad
Pub Date : 2004
Teaching Note :Not Available
Countries : Malaysia
Industry : Diversified

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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EXCERPTS

Good Work Receives Good Support

Genting Highlands soon emerged as one of Malaysia's most accessible and popular hill resort. Impressed by Lim Goh Tong's efforts to develop the resort without any government support and its contribution to the tourism industry, the Malaysian government gave Genting Highlands the license to operate a casino.

Casino gaming in Malaysia and in many countries of the world, was prohibited because of its links to criminal activities/elements and to the damaging effects gambling inflicted on people's lives. However, it was a well-known fact that casino operations generally attracted a lot of people and were a good money-spinner.

By granting a casino license to Genting, the government achieved the twin objectives of helping Genting's business prosper and attracting a larger number of tourists (domestic as well as international) to the country. With this, Genting Highlands became the first and the only casino license holder in Malaysia.

In 1971, Genting Highlands began operations by commissioning its first property, the Highlands Hotel...

Expanding Operations

Genting decided to become much more than a tourist resort with a casino. The company wanted to develop the resort as an entertainment hub containing several hotels and theme parks. In line with this philosophy, two new hotels, the Genting hotel and the Theme Park hotel, were added in the next few years.

To accommodate the increasing number of tourists and visitors to Genting Highlands, the company opened Awana Genting Highlands, another resort located mid-way up the hill to the Genting Highlands Resorts in 1985. Soon, the resort became popular for its year-round cool weather, eco-sports like mountain biking, jungle trekking, rock climbing, children's workshops, kite flying and rope courses, to name a few. In 1989, Genting underwent a major restructuring exercise and set up Resorts World Bhd (RWB), a subsidiary company, to take control of the management of all tourism activities under the Genting Group. The restructuring of the company was undertaken to transform the company into an investment holding and management company...

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