Genting Malaysia Further Reduces Employee Pay, Asks Executives to Take Time Off
Posted on: March 3, 2021, 10:39h.
Last updated on: March 3, 2021, 11:23h.
Genting Malaysia, a gaming and hospitality subsidiary of the multibillion-dollar conglomerate Genting Berhad — commonly referred to as the Genting Group — has asked employees and senior management to accept lower pay.
Genting Malaysia is the owner and operator of Resorts World casinos. The company has properties in its home country of Malaysia, as well as in the United States, Singapore, United Kingdom, and Bahamas. Resorts World Manila in the Philippines is controlled by the Genting Group.
In a memo to employees, Genting Malaysia asked senior staffers to agree to a temporary salary reduction of 15 percent to 20 percent. Executives have also been asked to take one day off each week with no pay.
We need to control Resort World Genting’s cost base to ensure the sustainability of our business and to help protect as many jobs as possible,” Lee Choong Yan, Genting Malaysia’s president, chief operating officer and executive director, said in the memo.
This is the second time Genting has asked workers in its gaming and hospitality segment to accept reduced compensation. The first came in April of 2020, when the company announced group-wide salary reductions.
The Genting Group is the business empire of billionaire Lim Kok Thay.
Travel Remains Slow
Genting Malaysia reasoned in its memo to employees that international travel is expected to remain dim in the coming months. Despite the COVID-19 vaccine being distributed around the world, governments are still urging residents to avoid unnecessary travel, and certain countries are continuing to limit entry for foreigners.
“Even with the recent availability of vaccines, tourist traffic to RWG (Resorts World Genting) is expected to remain subdued and uncertain in the short term,” the letter explained.
Resorts World Genting is the company’s oldest casino resort, opening back in 1965. Formerly known as Genting Highlands Resort, the property today has more than 10,000 hotel rooms, with over 200,000 square feet of gaming space, theme parks, and shopping malls.
“During this challenging time, and on behalf of Genting Malaysia, I seek your agreement to a temporary variation of your employment contract to give effect to a reduction in monthly base salary, or your agreement to take no-pay leave as the case may be,” Sri Lee pleaded to employees.
Those who accept the salary reductions and no-pay time off will receive lower pay effective immediately through May.
Genting Malaysia’s business has been sternly impacted due to the global pandemic. The company reported a net loss of RM2.26 billion (US$560 million) in 2020. The firm achieved a net profit of RM1.4 billion (US$350 million) in 2019.
The company, however, remains bullish on the long-term. Last month, it confirmed that the $800 million investment for another theme park at Resorts World Genting is still a go.
Genting SkyWorlds, the company says, will incorporate 20th Century Studios movie brands into its rides and attractions. It’s set to open in the second quarter of this year.
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