Genting’s leadership shake-up signals new era for one of Asia’s most powerful family empires

[KUALA LUMPUR] Malaysia’s Genting Group, one of Asia’s largest family-run conglomerates, may be transitioning to a more professional corporate structure as long-time chief Lim Kok Thay stepped down after nearly two decades at the helm.

Observers said this move could strengthen governance, reassure investors and address succession risks.

Tradeview Capital portfolio manager Neoh Jia Man noted that institutional investors have historically paid close attention to Genting’s family-controlled leadership.

“A shift in management could help restore confidence in the company’s direction and long-term strategy,” he told The Business Times.

Another fund manager, who declined to be named, noted that the Lim family has long maintained control over Genting, with Lim Kok Thay – widely known as KT in corporate circles – as the current patriarch of the family dynasty.

One of Asia’s wealthiest yet famously low-profile figures, Lim Kok Thay succeeded his late father, Genting founder Lim Goh Tong, as group chairman in 2004.

Investors have kept a close watch on governance practices, including transparency and disclosure, as well as succession planning, which has influenced market sentiment and share price trends of the company and related entities, the fund manager added.

Last Thursday (Feb 27), Bursa Malaysia-listed Genting Bhd announced that Lim Kok Thay, 73, will step down as chief executive after nearly two decades. He remains as the executive chairman.

As the group’s investment holding and management company, Genting Bhd oversees a conglomerate that turns 60 this year.

It was in 1965 when the late Lim Goh Tong transformed a remote mountaintop in Pahang, Malaysia, into Genting Highlands – the country’s first and only legal casino resort, now a major tourism and entertainment hub known for its cool climate, luxury hotels, casinos and theme parks.

The casino resort laid the foundation for the group which would grow to become a global gaming and hospitality giant, with Lim Kok Thay growing the Resorts World brand across Malaysia, Singapore, the US, Bahamas and the UK.

The group has also grown its footprint in oil palm plantations, power generation, oil and gas, property development, life sciences and biotechnology.

Lim Kok Thay will be succeeded by Tan Kong Han, who has served as president, chief operating officer and executive director of Genting Bhd for 18 years.

As of Mar 1, he assumed the role of CEO, becoming the first non-family member to lead the group’s flagship company. In the statement, Lim described the change as part of a “multi-year succession plan”.

CGS International Securities Malaysia described the transition as a “natural process”, given Tan’s long tenure at the company. “In terms of operations and future direction, we don’t expect any major changes,” a CGS analyst said.

Neoh echoed this view, saying the transition had addressed investors’ concerns.

“While the appointment suggests a shift towards professional management, the Lim family is likely to maintain firm control. That said, the structural change is positive, as it could mitigate future succession challenges, similar to those at City Developments Ltd (in Singapore),” he said.

Multi-generational empire

With the recent leadership shuffle, Lim Kok Thay’s son and perceived heir apparent, Lim Keong Hui, of the third generation, may be one to watch.

Lim Keong Hui, 40, will take over as CEO of Genting Plantations in March, succeeding Tan Kong Han.

Lim Keong Hui will step up from his current role as deputy CEO, a position he has held since January 2019, to lead Genting Plantations. It is one of Malaysia’s largest plantation companies and landowners, with 16,908 hectares of freehold land.

He is also deputy CEO and executive director at Genting Bhd and Genting Malaysia Bhd. Genting Malaysia is the group’s Malaysian-listed hospitality and leisure arm, owning and operating resort properties and casinos in Malaysia, the US, Bahamas, the UK and Egypt.

“This new appointment marks the culmination of our planned leadership transition – a strategic process designed to ensure a smooth succession,” said Genting Plantations chairman Mohd Zahidi Zainuddin in a statement last week.

Lim began his career at HSBC before joining Genting Hong Kong in 2009, where he held roles including senior vice-president of business development. In 2012, he was appointed non-independent non-executive director of Genting Bhd and Genting Malaysia.

He later became chief information officer before being promoted to deputy CEO and executive director of Genting Bhd, Genting Malaysia and Genting Plantations in 2019.

Other than Genting, he invested in and owns the Zouk nightclub brand, with clubs in Malaysia, Singapore and Las Vegas.

Lawyer-turned-casino boss

Tan, 59, joined Genting Bhd in 2007 as president and chief operating officer and was appointed executive director in 2020. He was also CEO and executive director of Genting Plantations from 2019.

Before Genting, Tan spent 13 years in investment banking. In 2003, he joined Tanjong, a conglomerate formerly controlled by Malaysian tycoon Ananda Krishnan, as group chief operating officer.

Tan holds a Master of Arts in economics and law from the University of Cambridge. He was called to the English Bar at Lincoln’s Inn in 1989 and to the Malaysian Bar in 1990.

Genting Bhd, with total assets of RM106.8 billion (S$32.3 billion), serves as the investment holding and management arm of the Genting Group. It has major stakes in Genting Singapore (52.6 per cent), Genting Malaysia (49.3 per cent), Genting Plantations (55.4 per cent) and Genting Energy (100 per cent).

Despite stepping down as CEO, Lim Kok Thay will remain executive chairman of Genting Bhd. The company said this will allow him to focus on the group’s broader responsibilities, while Tan handles day-to-day operations at Genting Bhd.

Lim Kok Thay ranks ninth among Malaysia’s richest individuals in the 2024 Forbes list, with an estimated net worth of US$2.2 billion.

He has been executive chairman of Singapore-listed Genting Singapore – the group’s flagship gaming and entertainment arm in Singapore – since September 2005, playing a key role in expanding the group’s footprint in the city-state.

Alongside Tan Hee Teck, now CEO, he led the successful bid in 2006 to develop the multi-billion dollar integrated resort Resorts World Sentosa.

Weak earnings weigh on stocks

Despite analysts’ positive views on the leadership transition, Genting Bhd and Genting Malaysia shares fell to multi-year lows amid disappointing earnings.

Observers said the market may also be responding to Lim Kok Thay stepping back from daily operations at Genting Berhad.

Genting Bhd closed at RM3.29 on Feb 28, down 44 sen or 11.8 per cent, its lowest level since 2021, with the stock declining 14.5 per cent in the year to date. By Mar 3 at noon, it had recovered slightly to RM3.30.

Subsidiary Genting Malaysia hit a 15-year low of RM1.90 on Feb 28, plunging 46 sen or 19.5 per cent, bringing its year-to-date loss to 15.6 per cent. By midday on Mar 3, it inched up to RM1.93.

Analysts said the declines were largely due to weaker-than-expected earnings. Genting Bhd posted a net loss of RM169.4 million in the fourth quarter of 2024, compared with a net profit of RM150.1 million a year earlier. Revenue declined 5.5 per cent year on year to RM6.9 billion.

For the full year, Genting Bhd’s net profit fell nearly 5 per cent to RM882.9 million, while revenue rose 3.7 per cent to RM27.7 billion.

Genting Malaysia reported a Q4 net loss of RM457.9 million, reducing its full-year profit to RM251.3 million. Full-year revenue stood at RM10.9 billion.

Maybank Investment Banking Group associate director Yin Shao Yang attributed Genting Bhd’s weak results to lower margins at Genting Malaysia and weaker earnings before interest, taxes, depreciation and amortisation at Resorts World Las Vegas in the US.

Genting Malaysia is conserving cash for potential expansions, including a US$5 billion project at Resorts World New York City and a possible US$3 billion bid for a casino licence in Thailand. These initiatives could weigh on Genting Bhd’s near-term earnings, Yin said.

Hong Leong Investment Bank analyst Chee Kok Siang expects Genting Bhd to benefit from a rebound in foreign visitors at Resorts World Genting and Resorts World Singapore, driven by increased travel from key Asia-Pacific markets, especially China.