Genting Malaysia doubles Resorts World investment to RM10.4b

Singapore

GENTING Malaysia Bhd (GenM) shed 3.7 per cent on Wednesday after it said it would double planned capital investment at its popular Resorts World Genting to RM10.38 billion (S$3.45 billion) from RM5 billion in a bid to elevate itself from regional competition and to be a destination of choice.

Expressing surprise at the new budget, AllianceDBS said investors were likely to be concerned about the possibility of delays, cost overruns and potential return on investment from the venture. In a client note, it also noted GenM had obtained regulatory approvals to set up a new casino at the hilltop, but management had been circumspect on the additional gaming capacity.