In a surprising turn of events, Genting Singapore has announced the dissolution of its Japan subsidiaries, Higashifuji and Hokkaido Higashifuji, which were established as part of the company’s bid for a casino license in Yokohama. The decision to dissolve the subsidiaries comes after Yokohama recently announced that it would no longer pursue a bid for an integrated resort, dealing a major blow to Genting Singapore’s plans for expansion in the lucrative Japanese market.
Genting Singapore had been one of the front-runners in the race for a casino license in Yokohama, with ambitious plans to develop a world-class integrated resort that would have included a casino, hotels, shopping malls, and entertainment facilities. However, the company’s hopes were dashed when Yokohama Mayor Fumiko Hayashi announced that the city would no longer pursue a bid for an integrated resort, citing concerns about the impact of the COVID-19 pandemic on the tourism industry.
The dissolution of the Japan subsidiaries is a significant setback for Genting Singapore, which had invested significant time and resources in its bid for a casino license in Yokohama. The company had already spent millions of dollars on feasibility studies, design plans, and marketing efforts, and had secured partnerships with local businesses and government officials. The decision to dissolve the subsidiaries will likely result in significant financial losses for Genting Singapore, as well as damage to its reputation in the Japanese market.
In a statement, Genting Singapore CEO Tan Hee Teck expressed disappointment at Yokohama’s decision to withdraw from the integrated resort bid, but emphasized that the company remains committed to exploring opportunities for growth in other markets. He also thanked the employees and partners who had worked tirelessly on the Japan project, and pledged to support them through the transition period.
Despite the setback in Japan, Genting Singapore remains optimistic about its future prospects, with plans to continue expanding its presence in other markets, including Singapore, Malaysia, and the United States. The company is currently involved in several major development projects, including the expansion of its Resorts World Sentosa integrated resort in Singapore, the redevelopment of its flagship Resorts World Genting property in Malaysia, and the construction of a new integrated resort in Las Vegas.
Industry analysts have expressed mixed reactions to Genting Singapore’s decision to dissolve its Japan subsidiaries, with some predicting that the company will face challenges in recovering from the setback, while others believe that the company’s strong track record and financial resources will enable it to bounce back. The dissolution of the Japan subsidiaries is a significant blow for Genting Singapore, but the company remains well-positioned to capitalize on growth opportunities in other markets.
