Moreover the sky avenues food and beverage and retail

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Moreover, the Sky Avenue’s food and beverage and retail outlets are also open for public with all the premium outlets be available by the first quarter of 2017. Also, the new gaming areas will be operational by the first quarter of 2017 as well. On the other hand, phase 1 of the 20 th Century Fox World theme park is scheduled to open in the fourth quarter of 2017 (The Edge Financial Daily, 2017). The Sky Avenue positioning as a shopping haven and the world’s first 20 th Century Fox World theme park will surely attract a large number of local visitors and tourists from the overseas and hence boosting the earning of the company. The massive investments made by the Genting Malaysia Berhad into the GITP plan shed lights to the investor confidence towards the future growth of the company. It was evidence from the steadily increase of the share price of the company since the announcement of the plan. The share price of Genting Malaysia Berhad grows from RM 4.30 to RM 5.30 over the past year of 2016 (Share price retrieved from Yahoo Finance). An additional RM5.38 billion capital expenditure is allocated towards expanding the new gaming capacity in the podium located at the Sky Plaza. On the other hand, the cost of developing the 20th Century Fox World theme park will also rise to RM2 billion from the 3
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UBFF3063 Financial Derivatives (Jan 2017) estimated RM1 billion. It was reported that of the RM8.1 billion project cost estimated for phase 1 development of GITP, only RM3.7 billion was being spent. Due to the decline in the value of Malaysian Ringgit, the expenditure of the GITP plan for the fiscal year 2017 is anticipated to rise. However, the investors need not to worry much as the company has already locked in the US dollar costs which are at lower rates (Ng, 2016). Due to the weakening of the Malaysian Ringgit, the local residents are discouraged to travel to the overseas countries during the festive season. However, the weakening Malaysian Ringgit becomes the attraction for foreign tourists to visit to Malaysia. Also, the tourism industry in Malaysia is expected to continue its growth in the years ahead, with tourism targets of 30.5 million arrivals and RM103 billion receipts in 2016. Under Malaysia’s recalibrated 2016 Budget, the tourism-related measures announced are expected to boost the local tourism sector. In fact, the overall tourist arrivals in Malaysia have been relatively strong and showed a compounded average growth rate of 5.7 percent throughout the last ten year from 2004 to 2014 (Manjur, 2016). Being a famous entertainment spot, Resorts Genting Highlands shall attract many local and foreign visitors and thus achieve great earnings. Stated in the Chairman’s Statement, there is an anticipated target of 30 million visitor arrivals to RWG by 2020. Genting Malaysia Berhad will be substantially enhancing and expanding the supporting infrastructure at the resort and remain focused on enhancing customer service as well as optimizing the management systems, operational efficiencies and database marketing efforts to grow business volume and visitation. It is believed that once the GITP
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  • Summer '17
  • ms lau
  • Derivatives, Genting Highlands, Genting, Genting Malaysia Berhad, klci futures price

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