Asked on 04 Apr 2019
The selloff on Thursday was due to the announcement of casino entry levy and tax rate hikes. Investors were concern with the negatives quantifiable impact of the gaming tax on earnings. The plunge in share prices was also after Genting unveiled a S$4.5 billion expansion plan. This expansion plan that includes the construction of a fourth tower at MBS, a Minion Park and Super Nintendo World at Sentosa has long-term benefits however, in the short run Genting will take a hit in earnings growth and cash pile. The higher casino tax rate will take effect in 2022 and the hike in goods and services tax to 9% between 2021 and 2025.