Strong SGD could derail Genting’s mass market expansion efforts

The SGD has appreciated against the rupiah and ringgit.

Mass market revenue and non-gaming income is increasingly becoming Genting’s lifeblood after suffering several quarters of weak VIP volumes. However, the SGD’s strength against regional currencies such as the Malaysian ringgit and the Indonesian rupiah could spell trouble for Genting’s new cash cow.

According to Maybank Kim Eng, Malaysia and Indonesia are Genting’s two largest sources of mass-market foreign gamblers and visitors.

“GENS acknowledges that the recent weakening of the MYR and IDR against SGD poses risks to RWS’s mass-market and non-gaming revenue. That said, the strengthening THB and CNY against SGD should provide some buffer,” the report said.