5. TAN SRI LIM KOK THAY Flagship: Genting Group Net worth RM16.56bil
THE dice was not in favour of Tan Sri
Lim Kok Thay and family, who saw a
30% or RM7.3bil drop in their wealth count last year. At RM16.56bil, Kok
Thay was ranked fifth richest, down three notches from 2017’s ranking.
Shares of Genting Malaysia Bhd and its parent company Genting Bhd came under pressure in the second half of last year after a spate of bad news hit sentiment on the stocks.
One was the unexpected hike in the casino tax by 10% to 35%, effective
Jan 1, 2019. Secondly was uncertainty on the opening date of its outdoor theme park, which is the subject of Genting’s legal suit against Disney and Twenty-First Century Fox.
The new theme park based on the 20th Century Fox World design was supposed to boost the number of visitors to Genting Highlands resort for the next two years from June 2019.
The run of bad luck saw shares of Genting plunging 32% from RM8.70 to RM5.91, erasing RM9bil in value.
As for Genting Malaysia, the loss in value was larger at RM12.85bil or by 42%. The stock ended the year at RM2.77 from RM5.16.
The company closed FY18 in the red, its first loss-making one since 2000 on higher impairment losses of RM1.8bil.
Business-wise, the Genting group is still a formidable one with listed entities in Singapore, Hong Kong, the Philippines and US Nasdaq.
Under Kok Thay’s stewardship, the group transformed from a one-hill casino founded by the late Tan Sri Lim Goh Tong, to an international gaming and entertainment wonder.
The group derives consistent cashflow from its casino operations in Malaysia and Singapore, but is now building its cruise ship business and expanding its casino operations in Las Vegas.
It is also cash-rich, sitting on RM8.8bil of cash. This puts it in a strong financial position to tender for new gaming jurisdictions in countries like Japan and Macau.
Besides gaming, the Genting group has interest in plantations via listed Genting Plantations Bhd and exposure to the power and oil and gas sectors.
From this year, Kok Thay’s son Lim Keong Hui has been appointed deputy CEO of Genting, Genting Malaysia, and Genting Plantations marking the third generation in the empire. Observers do not discount more executive roles given to the 34-year old Keong Hui as he is seen being groomed as the third generation successor of the Lim family.
However, an ongoing family feud is casting a cloud over the Genting empire.
The dispute over a family trust that Goh Tong had created, one of several created as corporate vehicles for the family inheritance, has spawned other legal battles.