When business resumes, we expect to face challenges to regain the level of business prior to the pandemic, says Genting Group CEO
by NUR HAZIQAH A MALEK/ pic credit: gentingmalaysia.com
GAMING and hospitality giant Genting Malaysia Bhd confirms that it is embarking on its maiden pay cut exercise as the Covid-19 pandemic forces its casinos, resorts and entertainment theme parks to be temporarily shut.
Genting Malaysia and Resorts World Bhd public relations and communications VP Katherine Chew said the pay cut, however, applies to certain positions employed under the Malaysian branch of the company.
“There was a voluntary programme for our assistant manager positions and above, who are employed by Genting Malaysia.
“I believe you have the article which is self-explanatory,” she told The Malaysian Reserve yesterday, in reference to a news report that Genting Bhd and its units would be undertaking the first group-wide salary cut since its founding back in 1965.
According to an internal memo sighted by Bloomberg, the company backed by Malaysian tycoon Tan Sri Lim Kok Thay is proposing a 20% temporary reduction of basic salary for employees based on their ranks, while Genting Hong Kong Ltd suggested up to 50% cut for VP position holders or higher.
In a statement, Genting Hong Kong confirmed that the cut will be in effect until year-end. Representatives for the group, as well as its Singapore and Malaysia units, have not responded to requests for comments at press time.
Genting Group CEO Tan Kong Han said businesses of the group have been badly affected, resulting in significant reductions in revenues.
“When business resumes, we expect to face challenges to regain the level of business prior to the pandemic due to the adverse impact that Covid-19 would have inflicted on the domestic and global economies,” he said.
The group is currently seeking to avoid job cuts as much as possible, even if salary remains one of its biggest cost components.
Operations in casinos and resorts in Las Vegas, as well as Singapore, were scaled back as countries imposed lockdowns, while consumers shun cruises after a few ships became coronavirus outbreak spots.
The group is also involved in property, plantation, life sciences, as well as energy sectors.
For its fourth quarter ended Dec 31, 2019, the company posted a net profit of RM2 billion on the back of RM21.62 billion in revenue.