Malaysia’s government on Monday is likely to open up more travel to select tourists since more than 90 percent of adults had been fully vaccinated.
Banking group Nomura said on Wednesday that Malaysia is likely to open up its borders to a select group of international tourists because of this high vaccination rate. The move is anticipated to have a positive ripple effect on Resort World Genting, Malaysia.
Tushar Mohata and Alpa Aggarwal, Analysts from Nomura, wrote, “We believe Malaysia, which has so far been a laggard in opening borders to international tourists amongst ASEAN countries, for instance, Singapore and Thailand have already started opening up, is likely to also allow select international tourists soon, now that it has already achieved a high vaccination rate amongst locals,”
Resort World Genting, Malaysia, on May 31, closed the whole Casino complex as a result of COVID-19 infections in Malaysia. However, the Casino reopened a number of its facilities to the public on September 30, including the Genting Casino.
As a recovery strategy, Nomura expects Genting Malaysia to maintain its share price as it opens up for interstate travelers. They believe that this will provide an opportunity for a fourth-quarter earnings recovery.
The analysts also expect the launch of the SkyWorlds theme park by the end of 2021, which will positively impact Genting Malaysia.
The analysts believe that Genting’s decision to pay USD 150 million preferred stock to Empire Resorts Inc. will be viewed as a negative move by investors since the company is currently making losses. But, on the contrary, the company believes that it is the right time to invest in Empire Resorts Inc.