Malaysia-based Berjaya Corporation Berhad plans to establish casino venues in Japan and South Korea, as part of its development plan to expand its business in markets outside Malaysia.
Vincent Tan, founder of the company, explained in an interview that Berjaya is taking steps to join casino projects in one of the above-mentioned countries or to establish a project of its own. The company is still weighing its current two options as they both have pros and cons.
Establishing a casino facility in South Korea will be easier in terms of legislation. On the other hand, the Berjaya Group already owns 100 acres of industrial land in Okinawa, Japan, a site which is perfectly suitable for its future plans for the construction of a casino resort.
The issue with the Japanese casino option is the current gaming legislation in the country. Berjaya will be able to proceed with its activities in Japan, only if local government implements a law that allows the establishment of casinos in the country. Japanese authorities have recently discussed a bill proposal. However, it is not likely to pass any time soon. It seems that it will be debated at the next Parliament meeting, which is to take place in the beginning of 2015.
Mr. Tan hopes that the country will one day be accessible to gaming companies, as it is considered one of the most highly anticipated gambling market globally. He said that, internationally, the casino sector is decreasing each year, and there are not many countries in which people still prefer visiting gambling venues to online gambling. He stated that most international casino destinations rely on attracting VIP and high roller players, whereas Japan still has a big medium-range clientèle.
The Berjaya Group, formerly the Inter-Pacific Industrial Group Berhad, is a cross-industry conglomerate which manages a wide range of businesses such as gambling, resorts, food and beverage, as well as the real estate sectors of Malaysia.
Vincent Tan bought a controlling package of the company’s shares in 1984 and since then, the company has changed its business operations, becoming a powerful group of diversified companies. It was completely restructured by 2005.
The founder of the company has two other businesses connected to gambling. The first is the Sports Toto Malaysia, and the second is a project that was started earlier this year – a resort casino, which is to become the only competitor of the Genting Berhad-controlled casino resort. The latter currently has a monopolistic control over the Malaysian market.
Experts, however, doubt that the new casino will become reality. If it does, it is planned to include a show room, different dining options, sports facilities, swimming pools, entertainment parks, etc.
Analysts are skeptical of Tan’s plans as ten years ago, he tried to open a casino at the Berjaya Hills and was stormed by protesting groups, that were strongly against the construction of a second venue of this kind in the country. The casino proposal was canceled due to this. This may be one of the reasons why Berjaya Group has eagerly been searching to establish casino operations in another country. So far, Tan has shown interest in Japan and South Korea. However, he continues to look for other possible gaming locations.
