As Malaysia heads toward its 16th General Election, political tensions are heating up, particularly in the state of Pahang, where the Malaysian Islamic Party (Parti Islam Se-Malaysia, or PAS) has vowed to shut down all forms of gambling if it takes control of the state government. This promise includes the closure of Genting Malaysia’s sprawling casino and resort complex, a move that has sparked significant debate regarding its economic, legal, and social consequences.
PAS’s Push to Eliminate Gambling: A Moral Standpoint with Political Ramifications
During PAS’s 70th Muktamar (annual conference), the party reaffirmed its stance against gambling, with leaders pledging to close down all gambling operations in the state. This includes the Genting Malaysia casino, located within Pahang’s borders, which stands as one of the country’s largest gambling establishments.
For PAS, the opposition to gambling is not a new platform. As a party built on Islamic values, it has long sought to remove elements of vice, including gambling, from Malaysian society. However, their latest promise has gained increased attention due to the prominence of Genting Malaysia, a major player in the national economy.
Legal Complexities: Shutting Down Genting Not a Simple Task
While PAS has made its position clear, the logistics of actually shutting down Genting’s casino are far more complicated than a simple state-level decree. Pahang PAS Deputy Commissioner Andansura Rabu admitted that closing Genting would require federal legislation, as state governments do not have full control over such matters. The Federal Government holds the final say in matters of national importance, especially when it involves significant contributors to the country’s economy like Genting.
“In that regard, we need to look at the law. If we have the power at the state level, if we can do it, we will do it,” said Andansura Rabu. His statement suggests that while PAS might advocate for such changes, actual implementation would face substantial hurdles.
Legal experts have echoed this sentiment, noting that PAS would need to secure support at the national level to alter the legal frameworks governing gambling licenses. Without these changes, any attempt by a state government to shut down a national enterprise such as Genting would likely fail in the courts.
Economic Fallout: The Consequences of Shutting Down Genting
While PAS’s anti-gambling agenda appeals to its core constituency, the economic implications of shutting down Genting cannot be ignored. Genting Malaysia, one of the leading entertainment and resort companies in Asia, is a substantial contributor to the state and national economies. Its operations encompass not only gambling but also hotels, amusement parks, and other hospitality services, which attract millions of visitors each year.
In Q2 2024, Genting Malaysia reported an 8% revenue increase, amounting to RM2.67 billion ($0.62 billion). This growth highlights the company’s resilience and continued significance in Malaysia’s post-pandemic recovery. Over the first half of 2024, Genting Malaysia achieved total revenues of RM5.43 billion, further solidifying its role as a key player in the country’s economic framework.
Any decision to close the resort could result in a severe loss of revenue not just for Pahang but for Malaysia as a whole. Given the scale of its operations, Genting Malaysia is responsible for a significant portion of national tax revenues and other economic contributions.
Job Losses and Local Livelihoods: A Human Cost
Perhaps the most immediate and devastating impact of a potential closure would be on the employees of Genting Malaysia. The resort complex employs thousands of people, many of whom are local to the region. Importantly, these employees are not limited to the casino; they include staff in hotels, amusement parks, restaurants, and other non-gambling sectors of the resort.
Lee Chin Chen, the chairman of Pahang’s Democratic Action Party (DAP), has been one of the most vocal opponents of PAS’s promise to close Genting. He warned that such a decision would devastate the local economy, leading to widespread job losses. According to him, even local Muslims, who work in non-gambling roles, would suffer from the closure.
“The decision to shut down Genting would not only affect Malaysia’s national revenue but also the livelihood of all the people working in the resort, including local Muslim staff working at the hotels and the amusement parks,” said Lee Chin Chen.
Broader Impact on the Malaysian Economy: Genting’s Regional Importance
The significance of Genting’s operations extends beyond just Pahang or even Malaysia. Genting Singapore, another arm of the company, also posted a 29% revenue increase in the same period, illustrating the company’s influence in the broader Southeast Asian market.
For Malaysia, the loss of Genting Malaysia would have ripple effects throughout the economy. It is not just a gambling company; it is a multi-faceted entertainment conglomerate, and its contribution to Malaysia’s tourism industry is immense. International tourists often flock to Genting Highlands, where the resort is located, making it one of the country’s top tourist destinations.
The economic impact, therefore, would stretch far beyond gambling revenues. Tourism would likely decline, affecting businesses throughout the region that rely on the influx of visitors.
The Cultural Debate on Gambling: A Nation Divided
Beyond the economic arguments, PAS’s promise also touches on a sensitive cultural and religious issue in Malaysia. As an Islamic party, PAS has long stood against gambling, viewing it as antithetical to the values of Islam, which prohibits such activities. In a country where over 60% of the population is Muslim, this stance resonates with many voters.
However, Malaysia is a diverse nation, and there are also significant non-Muslim populations, particularly in regions like Pahang, where economic considerations often outweigh moral ones. For many, the financial benefits brought by Genting Malaysia outweigh the moral arguments against gambling, particularly in a period of economic recovery following the COVID-19 pandemic.
As the 16th General Election approaches, PAS’s vow to shut down Genting Malaysia’s casino in Pahang highlights a broader national debate between morality and economics. While PAS has strong religious reasons for opposing gambling, the economic fallout from such a decision could be catastrophic, affecting not just state and national revenues but also the livelihoods of thousands of workers.
Furthermore, the legal complexities involved in shutting down a national enterprise like Genting mean that even if PAS wins control of Pahang, it would face significant challenges in implementing its plans. As the election draws closer, voters in Pahang will have to weigh these competing factors carefully: the moral imperative against gambling versus the economic benefits of one of the country’s largest employers and revenue generators.