Bloomberg Casino article exposes the intricacies of how business is done by the elite
Bloomberg leak was a test of public opinion
The recent Bloomberg article exposing that informal talks had taken place about granting a casino license at Forest City was very quickly denied by prime minister Anwar Ibrahim.
The Bloomberg article was most probably an intended leak to gauge public opinion. Prime minister Anwar is in a bind where he must assist the development of Forest City and at the same time maintain his “Islamic credentials” with voters in the Malay heartlands. This is the biggest dilemma in the way of granting such a license.
No to the casino by Anwar Ibrahim
But you cant guess which way this will go
This leak tells us something very important about the Madani government. The Madani government is one of pragmatism, not ideology. This is the biggest take-away from the Bloomberg article. There is some recognition that a casino in Forest City could be a game changer for the southern Johor development.
The second take-away from the Bloomberg article is that it gives a clear to read rare glimpse about how business is really undertaken in Malaysia. Parties or stakeholders mentioned in the article consists of a nexus of government, which has the power to grant a casino license, major corporations, which want to build and operate the casino, and royalty, that already has a major stake in Forest City.
The Bloomberg article is a classic case study of how new projects are created in Malaysia. If one wants to undertake a major project in Malaysia, just follow the model.
The full article is reproduced below:
Malaysia Is Said to Weigh Casino License to Revive Forest City
25.04.24
• Prime Minister Anwar holds talks with tycoons Tan, Lim
• Discussions at early stage, people familiar with matter say
(Bloomberg) -- Malaysia is in early discussions with tycoons on opening a casino in Forest City, people familiar with the matter said, in a bid to revive the beleaguered $100 billion property project that counts the country’s monarch as one of its shareholders.
Prime Minister Anwar Ibrahim met Berjaya Corp. founder Vincent Tan and Genting Group’s Lim Kok Thay last week at the development on the southern coast of Malaysia near Singapore, the people said, asking not to be identified because the information is private. King Ibrahim Iskandar was also represented, the people said.
The talks are preliminary and it’s unclear how seriously Anwar is taking the idea, which could cause a backlash in the Muslim-majority nation where gambling is frowned upon.
A casino would be a boost for Forest City, the sprawl of high-rise condominiums built on reclaimed land by the Chinese developer Country Garden Holdings Co. It has struggled to attract residents from China and elsewhere, thwarted by a litany of hurdles including political resistance in Malaysia, a Chinese government crackdown on citizens buying real estate overseas and the Covid-19 pandemic.
It would also be a boon for King Ibrahim, a billionaire businessman himself who controls more than 20% of the joint venture with Country Garden that’s the master developer of Forest City, according to company filings. Members of the royal family or proxies of the king may also be invited to take a stake in any casino, one of the people said.
Anwar, senior government officials and the businessmen had lunch and meetings on the possibility of granting what would only be Malaysia’s second-ever casino license.
Country Garden is keen to have a casino at the development, a person with knowledge of the matter said, asking not to be identified because the information is private.
A spokesperson for Berjaya said the company isn’t aware of any conversation between Prime Minister Anwar and Tan on the potential development of any casino in Forest City. The prime minister’s office, the National Palace, Country Garden and Genting didn’t respond to requests for comment.
The two tycoons are among the most prominent businesspeople in Malaysia. Lim is chairman of Genting Bhd. His father, Lim Goh Tong, won approval in 1969 to open Malaysia’s first casino in a hill resort in a central part of the country. Genting also operates casinos in countries including Singapore, the US and the UK.
Tan is involved in businesses ranging from real estate development to operating brands such as 7-Eleven and Starbucks in Malaysia. He has long harbored ambitions of winning a casino license in Malaysia, but has been rejected at least twice, according to local media reports. King Ibrahim directly holds a stake in Berjaya Assets Bhd., while his daughter is the chair of Berjaya Corp. and the rail unit of Berjaya Land Bhd.
King Ibrahim, the sultan of the southernmost state of Johor where Forest City is located, ascended to Malaysia’s throne in January. Malaysia has a unique constitutional monarchy where nine hereditary Malay rulers take turns to serve five-year terms.
Any move to develop another casino in Malaysia could become a challenge for Anwar, who heads a coalition government made up of almost 20 parties. Gambling is prohibited under Islam and Muslims are barred from even entering Malaysia’s casino.
Gaming is one of the most regulated sectors in Malaysia. A casino license has to be renewed every three months at the discretion of the finance minister. Anwar also holds the finance minister post.
But a new gambling hub would bring in revenue for the government. The existing casino contributed as much as 5 billion ringgit ($1 billion) annually before the pandemic, according to a report by UOB Kay Hian, a Singapore-based brokerage.
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The late tun haniff omar was chairman of genting casino. Whenever he hold a khenduri at his home, no muslim eat the food he served. They assume it is money from gambling. It is forbidden.
This is also why he was not buried at the national mosque.
On the other hand, anwar always shifts the paradigm of how things are done.
Just like ftz, it is likely that this special johore-singapore economic zone will be given the casino license.
That will be the third full casino license. The 2nd one was to lowyat group. The tunku gave to them and it has no expiry date. They have the first right of refusal.
PMX can look at the Kingdom of Saudi Arabia to see how business and foreign investment can bring money and success to a country's prosperity. Events and situation have changed much in the Kingdom, such as women can drive, pubs can operate and gambling allows.
The temptation of material gain is hard to resist. If the Forest project in Johore fails due to lack of attraction such as beers and gambling and the night life, then what? Th stake holders in the massive RM 100 billion project has the right investors and people of influence and connections, the laws and licence are in the same state and what is to stop the miracle touch from being executed?
What is the ingredient to trigger success and prosperity? Connection? Laws? Hard work?
How to revive a failed project?
Money incentive and support from government alone will not guarantee any success of a project undertaken to make the nation great! Let's learn from history!
Samuel Pierpont Langley (Aug 22 1834-Feb 27 1906) had connection,education qualification and financial support from government institution and even reputation to build a flying machine. he was given US 50000( Equivalent to US $ 1.8 million today) by the war department to kick off the project to invent a flying machine. But he failed and his highly promoted and anticipated success did not come at all.
However, the Wright brothers had nothing of any sort at all which were at the disposal of Samuel Langley. Made the plane flied and the whole world recognized their achievement! Motivation and inspiration make the difference to the outcome of a quest for success.
Let's wait and see how PMX will respond to the battle between religion and public opinion vs sound economic reasons and logic to overcome this dilemma of his own making.