Malaysian Officials have given a hint last week about possibly raising taxes in an effort to reverse a shrinking government bank account. In 1998, last time gaming taxes changed when they increased it from 22% to 25%, but if it increases, it won’t be a problem at least one casinos in the country, according to the markets analysts.
Two analysts firm, Maybank Kim Eng research and Namura international, recently said in their research that Genting Malaysia is in a very strong position that an increase in taxes won’t affect them in any way. They both said the market typically factor in price increases as they prepare their forecast.
Genting, also operates the Resort World Genting in Malaysia, almost immediately saw a negative response. Market showed that the stocks of the company dropped by 9% since the starting of October Month.
Namura indicated that, company’s earnings is likely to continue growing, even if a new tax structure is introduced in the Gaming industry by the government their. The Stockbrokers analysts said that, Gentings new attraction will help them boost their business, leading to a wider range of profit margins in 2019.
The Resort is also expected to open two theme parks- 20th Century Fox and Skytroplis, during the first six months of the year 2019. The plan is also to increase of 1,500 hotel rooms and new recreational facilities and new dining options.