Tan Sri Lim Kok Thay - Nicky Loh/Bloomberg
PETALING JAYA: It is a watershed moment for Genting Bhd
as its long-serving head honcho, Tan Sri Lim Kok Thay, passes the baton to Datuk Seri Tan Kong Han.
This marks a significant move as it is the first time a non-family member has been tasked with helming the group.
After almost two decades at the helm, Lim, 73, relinquished his role as chief executive officer (CEO) but will continue to serve as the executive chairman of Genting.
This comes at a time where Genting and its subsidiary, Genting Malaysia Bhd, are facing financial struggles due to operational and regulatory challenges.
Market observers believe it is timely for the group to be professionally run and steered toward recovery and growth.
In recent years, the investing community were unhappy with the group’s related-party transactions, particularly Genting Malaysia’s additional US$100mil equity injection into its 49%-owned beleaguered US associate, Empire Resorts Inc.
There were also concerns about the lack of a clear succession plan for the casino and hospitality group.
On Feb 27, Genting announced the appointment of Tan, who was the president, chief operating officer and executive director (ED) of Genting for 18 years, as its CEO, effective March 1.
Tan remains as the president and ED of Genting, positions he has held since Jan 1, 2020.
Meanwhile, Tan stepped down from his position as CEO of Genting Plantations Bhd, but remains as its ED, to focus on his new role at Genting.
Datuk Lim Keong Hui, 40, Lim's son, assumed the role of CEO of Genting Plantations, effective March 1, transitioning from his position as deputy CEO, which he had held since Jan 1, 2019.
Keong Hui also holds positions at Genting and Genting Malaysia, both as deputy CEO and ED.
Genting recently reported its first quarterly loss in two years due to higher finance costs and share of losses in joint ventures and associates.
It plunged into the red with a net loss of RM169.39mil in the fourth quarter ended Dec 31, 2024 (4Q24), from a net profit of RM150.99mil a year earlier.
This marked Genting's first quarterly loss since 4Q22, when it booked a net loss of RM168.72mil.
The group declared a final dividend of five sen per share, compared with nine sen a year earlier.
This brought the total payout for financial year 2024 (FY24) to 11 sen per share, lower than the 15 sen paid in FY23.
Genting Malaysia also declared a lower dividend for 2024 as part of its strategy to conserve cash for expansion and investment, according to analysts.
Analysts also noted that Genting Malaysia’s resorts in New York City would require an estimated US$5bil for expansion if its bid for a downstate casino licence is successful, and another capital outlay of US$3bil if it manages to secure a licence in Thailand.
