January 15, 2010
Singapore’s octogenarian leader Lee Kuan Yew showed who is
really in charge of the government by being the first PAP leader to
pay a visit to Resorts World Sentosa on Wednesday, a week ahead of
the opening of its first phase on Jan 20.
He was hosted by Tan Sri Lim Kok Thay, chairman of the Genting
group which owns the resort, and Mr Tan Hee Teck, chief executive
officer of Resorts World Sentosa.
Such an important symbolic visit should be undertaken by the
Minister of Trade and Industry or the Prime Minister himself.
It is strange that MM Lee, who admitted in a speech to a
Japanese audience recently that he is “not doing much work except
doing forecasting” felt fit to make the trip in person in spite of
his advanced age.
In fact, his son the Prime Minister has not appeared much in
news lately except a New Year’s day message to Singaporeans that
they remain a “priority” for his government.
Mr Lee’s press secretary Yeong Yoon Ying said that during the
visit, which lasted two hours, MM Lee toured the Universal Studios
and had a brief visit to its four theme parks, some of its hotels,
as well as the WaterWorld amphitheatre.
The two Integrated Resorts were part of the ruling party’s
grandiose plans to diversify and expand Singapore’s economy in the
hope of bring much needed foreign capital and talent into the
island state.
They were implemented swiftly without much of a consultation
with the people despite staunch opposition from religious
groups.
While the state media has been busy of late trying to generate
positive publicity for the two IRs, others are more guarded about
their future prospects.
An analyst from Citicorp Anil Daswani expressed doubts about the
profitability of Singapore’s two integrated resorts in September
last year.
In a report on the prospects of Las Vegas Sands (LVS), which
owns Marina Bay Sands (MBS) here, Citi said that assuming MBS
contributes 20 per cent of LVS’s total Ebitdar in its first full
year, every eligible Singaporean will have to go to the casino five
times a year and spend more then the average visitor to Macau.
‘We liken the current sentiment towards the integrated resort to
the Macau gaming boom in 2006/07 and urge investors to not be left
holding this parcel when the music stops,’ he added.
According to Mr Anil, Singapore needs to attract locals to
gamble regularly if it wants its casinos to succeed.
However, a hefty entry fee of $100 is likely to put off some
Singaporeans. Furthermore, unlike Las Vegas or Melbourne, Singapore
has a small population of only 5 million people.
Ronnie Chan, chairman of Hang Lung Properties Ltd., Hong Kong’s
fifth-biggest developer by market value, said recently in a
Bloomberg Forum in Hong Kong that the two casino-resorts in
Singapore will fail because they won’t be able to attract
high-rollers:
“The big rollers are what make money in casinos, they will
never come to Singapore, it’s a family entertainment” location. You
think big-rollers will go to Singapore where they have teeth and
fangs coming out sideways? There are too many rules. I was in
Sentosa island, I really think that it’s going to be a flop…..The
whole integrated entertainment industry, I’m worried for them. The
good thing about Singapore is that if you flop, you’re given a
second chance,” he said.
Despite all the hype and buzz from the media, MM Lee must be
feeling anxious about the PAP’s pet project which is tied to its
political fortunes.
Fortunately for him, even if both flop, he will be given a second
chance to redeem himself as there is no opposition in parliament to
hold him and his colleagues accountable and neither are
Singaporeans brave enough to register their displeasure
publicly.
In the event that the two IRs fail to bring in the visitors and
generate sufficient revenue as promised, Singapore will end up with
two white elephants in the its CBD, like the now defunct Tang
dynasty village in Jurong.
http://www.temasekreview.com/index.php?s=mm+lee+visit+to+casino
