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By Mihar Dias (C) Copyright September 2024
The possibility of Genting Highlands being shut down if PAS were to win Pahang in the next election is a scenario that could have far-reaching implications for Malaysia’s tourism industry and overall economy.
As PAS deputy commissioner Andansura Rabu recently stated, PAS intends to close down gambling outlets under its jurisdiction if they are seen as socially harmful.
Given Genting's position as one of Southeast Asia's premier tourist destinations, the consequences of such a move are worth serious consideration.
The Economic Impact of Genting Highlands
Genting Highlands is more than just a casino. It is an integrated resort offering luxury hotels, theme parks, entertainment venues, and shopping malls. The entire area has been a significant driver of both local and international tourism. The casino, although central to its identity, forms part of a broader ecosystem that has created jobs, supported local businesses, and attracted millions of tourists annually. Shutting down the casino would undoubtedly have a ripple effect across the tourism sector.
In 2019, the tourism industry contributed over RM240 billion to Malaysia’s economy, with Genting Highlands playing a key role in attracting tourists, especially from China, Singapore, and Thailand.
If gambling were banned, Malaysia could see a significant dip in visitor numbers, which would affect not only hotels and restaurants but also peripheral industries, from transportation to retail.
Moreover, Genting’s tax contributions are substantial, with a portion of the state and federal revenue coming directly from the resort’s activities. The closure of its casino would diminish these revenue streams.
Effects on Employment
Beyond the tourists, thousands of Malaysians are employed directly at Genting Highlands. These jobs range from hospitality and customer service to technical and administrative roles. Many of these employees would face unemployment or the need to seek work elsewhere if the casino were to close. This could have broader implications for Pahang’s economy, potentially increasing unemployment rates and reducing household incomes in the region.
For PAS, the question becomes whether their moral stance on gambling justifies the risk of increased economic hardship for the people of Pahang, especially when considering that the casino is not just a moral issue but a lifeline for many families in the state.
Tourism Shift and Regional Competition
Should Genting's casinos shut down, Malaysia could face a stark competitive disadvantage in the region. Neighboring countries such as Singapore and the Philippines have positioned themselves as premier gaming destinations, with Singapore’s Marina Bay Sands and Resorts World Sentosa casinos drawing millions annually. If Malaysia withdraws from this segment of the tourism market, these countries will likely capture a significant share of Malaysia's gambling tourists, further exacerbating the potential economic downturn for Malaysia.
Broader Social Implications
On the other hand, PAS is framing the issue as one of social welfare. The party argues that gambling causes harm to society, promoting unhealthy behaviours such as addiction and financial ruin. This moral argument resonates with segments of the population, particularly in conservative states where PAS holds sway. However, there’s an inherent tension between upholding moral values and sustaining economic growth.
While gambling does carry social risks, outright prohibition may not be the best solution. Banning casinos could lead to illegal gambling rings, further complicating law enforcement and increasing the burden on public services. Rather than closing down Genting, there may be more pragmatic solutions, such as stricter regulations, targeted programmes to address gambling addiction, or alternative tourism models that retain the economic benefits without exacerbating social harms.
Conclusion
The closure of Genting Highlands’ casino would bring significant consequences to Malaysia’s economy, tourism sector, and employment landscape. While PAS’s argument against gambling on moral grounds may have some merit, the economic and social costs of such a move could be devastating, particularly for the people of Pahang who rely on the tourism industry for their livelihoods. Malaysia must strike a delicate balance between ethical governance and pragmatic economic policies if it wishes to remain competitive in the region.
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