Genting Singapore Ltd. has announced that managers and executive personnel must accept salary cuts due to the “massive disruption to the travel and tourism industries” caused by the Covid-19 pandemic.
The company, which operates Resorts World Sentosa in Singapore, has also asked more junior staff to take “no-pay leave and/or annual leave” during what is expected to be a prolonged decrease in patronage. The firm also issued a statement saying its financial results :will be significantly and adversely impacted for the first quarter ending 31 March 2020 and the half year ending 30 June 2020.”
It said it will reduce non-executive director fees by 15 percent in the first quarter, while its executive directors will take an 18 percent reduction in base salary. There will also be a cut of between 9 percent and 18 percent for all managerial staff. The company has urged employees to take unpaid leave, or annual leave.
In a filing last week to the Singapore Exchange, Genting Singapore said the contagion has caused “a significant decrease in visitor attendance and correspondingly revenue, across all its facilities, including … attractions, hotels, restaurants, MICE facilities and the casino.”
The resort remained open, with “stringent health and precautionary measures,” to ensure the well-being of its employees and visitors.
According to the New Straits Times, the firm’s flagship property, Resorts World Genting near Kuala Lumpur, Malaysia, is “temporarily closed” until March 31, with a plan to reopen April 1.
On March 16, the Malaysian government banned overseas citizens from coming to the country and shut businesses and schools. At that time, the nation had the highest number of confirmed cases of Covid-19 infections in Southeast Asia, 553.
Asia Gaming Brief reported that Genting Hong Kong, the conglomerate’s cruise ship subsidiary, expects to post an operating loss in the first half despite cost-cutting measures, such as senior executives agreeing to forego their salaries until the end of the year and managers being asked to take a voluntary cut in pay of between 20 percent and 50 percent.
