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Malaysia to benefit from China's crackdown on gambling

Malaysia as a whole is a destination of choice for Chinese tourists, with visitor numbers expected to continue improving in the near future.

Azzman Abdul Jamal
2 minute read
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A blanket of mist covers popular tourist spot Genting Highlands in the hills of Pahang, home to Malaysia's only casino.
A blanket of mist covers popular tourist spot Genting Highlands in the hills of Pahang, home to Malaysia's only casino.

China's move to ban gambling activities throughout the country with the exception of Macau is likely to boost citizens' travel to other countries, including Malaysia which is home to one of the leading casinos in the region. 

The ban on gambling was enforced after the Chinese Communist Party took over the country's administration in 1949, indirectly transforming the industry and the development of casinos in other Asian countries. 

Today, most of the 340 casinos in Southeast Asia are seen as part of efforts to entice tourists from China with a proclivity for gambling. 

In Malaysia, the only casino countrywide is operated by Genting Group in the hilly tourist haven of Genting Highlands. 

Lee Heng Guie, the executive director of the Socio-Economic Research Centre, said the growth in China's wealth market would encourage affluent citizens to try their luck at casinos throughout Asia, including Genting Malaysia. 

"China's high rollers will be spending a lot of money at casinos in Asia, and Genting Malaysia will get a slice of the pie despite competition from neighbouring countries like Singapore, Australia and the Philippines," Lee told MalaysiaNow. 

"So we have to maintain our image as a clean and safe leisure and tourist destination."

Malaysia as a whole has emerged as a destination of choice for Chinese tourists, whose numbers have increased over the past few years. 

In 2019, before the onset of the Covid-19 pandemic, Malaysia recorded 3.1 million tourist entries from China, up from 2.94 million the year before. 

While tourist arrivals suffered a drastic drop throughout the Covid-19 pandemic, falling to just 405,000 in 2020, Malaysia's travel sector is expected to begin benefiting from Chinese visitors once more following the gradual loosening of restrictions in the republic. 

In the third quarter ending Sept 30, 2022, Genting Bhd recorded RM4.12 billion in revenue, up 75% from RM3.5 billion recorded in the same period the year before. 

In a note to Bursa Malaysia on Nov 24, the group said that its surge in income was mostly due to the leisure and hospitality sectors in Malaysia and Singapore. 

It said the resumption of operations at Resorts World Sentosa also reflected recovery in the regional travel sector, although this had yet to reach the levels seen before the onset of Covid-19. 

"The rebound in gambling revenue is being driven by the presence of premium customers who stay longer in the country," it said.