25 Tan Hee Tec
CHAIRMAN AND CEO
Resorts World Sentosa
CLAIMS TO FAME
• Spearheaded Genting’s crucial battle for Singapore gaming license
• Oversees one of world’s most profitable IRs
• Point player for Genting’s Japan IR ambitions
POWER SCORE 1,007 LAST YEAR 15
Resorts World Sentosa is bouncing back after painful times as China’s economic growth slowed and VIP play contracted. For this year’s first nine months, the Genting Singapore integrated resort reported gaming revenue up 12% and EBITDA up 64%. Management has cut costs, promoted high margin segments and slashed impaired receivables by 80% thanks to “a more measured” VIP credit policy.
For Genting, securing an IR license in Singapore was crucial to defend its original Highlands Resort in Malaysia, and Tan Hee Teck led that winning effort. Even though it cost US$5.7 billion and runs second to crosstown rival Marina Bay Sands, Resorts World Sentosa has proven a highly profitable defensive gambit, delivering the majority of EBITDA in Genting Group’s core hospitality and leisure segment. The IR is on pace to produce some US$900 million in property EBITDA this year on US$1.8 billion revenue, a 50% margin. To stay relevant in Singapore, RWS is formulating a five year strategic plan to enhance visitor appeal.
Mr Tan also serves as President and COO of Genting Singapore, the IR’s SGX listed corporate parent. GenSing took the lead on RW Jeju, a US$1.8 billion IR on South Korea’s tourist island with visa free entry for mainland Chinese. In November last year, Genting decided to sell its Jeju stake to joint venture partner Landing International. The deal closed early this year, with GenSing booking a US$71 million profit on its US$367 million investment, a 19% return.
Genting said it exited Jeju to focus on Japan, correctly anticipating Japanese Diet passage of legislation formally starting the casino legalization process. Many consider Genting a Japan IR frontrunner and, building on his Singapore success, Mr Tan leads that push. This year, GenSing established a Japan office and raised ¥20 billion (US$175 million) through yen denominated bonds to support the IR drive.
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