Home » Weekly Forecast » Genting: Weak ringgit delays opening of movie theme park

Genting: Weak ringgit delays opening of movie theme park

Genting: Weak ringgit delays opening of movie theme park

KUALA LUMPUR — Genting Malaysia, an unit of the leading gaming conglomerate Genting, has pushed back the opening of its planned 20th Century Fox World theme park until 2017, CIMB Research said on Monday in a company update.

     The 1 billion ringgit ($239 million) park, licensed by a unit of Hollywood studio Twentieth Century Fox Film, is to be the first of its kind. The project is part of a 5 billion ringgit, 10-year makeover of the Genting Highlands resort on the outskirts of Kuala Lumpur, commenced in December 2013.

     The theme park had been scheduled to open in late 2016. CIMB Research, which recently met with Genting Malaysia’s management, said the group is reviewing the cost of the entire project due to the ringgit’s sharp depreciation. The currency has declined by almost 20% against the dollar so far this year.

     The research company estimates the currency factor would increase capital spending on the project “marginally,” due to the need to import theme park equipment. The 101,171-sq.-meter park is to feature 25 movie-inspired rides, including attractions based on “Ice Age” and “Night at the Museum.” A new shopping mall and gaming facilities are slated to open at the resort earlier, starting in the second quarter of 2016.

     Genting Malaysia recently tapped the bond market, issuing 2.4 billion ringgit worth of medium-term notes to use as working capital — including for financing the Genting Highlands project.

     Since last year, the decline of commodities prices has affected Malaysia’s exports of oil, gas and palm oil products, weighing on the ringgit. The possibility of an interest rate hike by the U.S. Federal Reserve, as well as political uncertainty stemming from a scandal involving state fund 1Malaysia Development Berhad, also spurred selling of the currency.

     Malaysia has faced the heaviest currency pressure among its Southeast Asian peers. Still, analysts say the worst is likely over for the ringgit. Krystal Tan, an economist at Capital Economics, said the weak currency is benefiting the country’s export-oriented manufacturing sectors and noted that its foreign currency debts are largely hedged. 

Genting: Weak ringgit delays opening of movie theme park

About ForexMarketz

Check Also

euro

Euro Currency is still below the Key Moving Averages

0.0 00 The euro currency formed a lower low and a lower high last week. …

Leave a Reply

Your email address will not be published.