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Today,
6 Apr 04
Durians
will help casino dream bear fruit
By Prithpal Singh
With all the talk about casinos in Singapore, I decided to read "My
Dream", the book by Genting Highland's founder Tan Sri Lim
Goh Tong. I wanted to see if there were lessons we could learn from
this amazing man. What struck me was that, apart from his great vision
and dogged determination, there were two critical factors which made
his dream come true.
Firstly, it was his sheer audacity. In 1964, at a time when predominantly
Muslim Malaya was in the throes of uncertainties and anxieties created
by confrontasi in Indonesia, Tan Sri Lim met and shared with Tunku
Abdul Rahman, then Prime Minister, his vision to transform a desolate
mountain into a resort.
Secondly, Tunku, as busy as he was, not only read the project paper
presented, but also approved it in one week. In 1969, after the foundation
stone was laid for the first hotel in Genting, a casino licence application
was submitted to Tunku. The Cabinet approved it in six hours. As Tan
Sri Lim said in his book: "I was later told to collect the approval
letter." And the rest, as they say, is history.
There are many lessons one can draw from this, paramount of which
is that to create something world-class, there has to be a truly compelling
vision to start off with. After that comes the political will, support
from the Government and speed in implementation.
Our Singapore casino vision, in contrast, has been expounded by the
Government. It involves the transformation of a few of the Southern
Islands we have into a world-class resort and casino destination for
the rich and famous.
Laudable as this may be, I question whether even if we can spare the
cash, we have the luxury of time and financial stamina to make this
vision a reality. The question arises: Should not the entrepreneurs
in our midst be the ones who should be encouraged to come up with
the appropriate vision — with no constraints and encumbrances?
Sound and credible reputations for casinos are not easy to develop
and there are already too many mega casino resorts all over the world.
It has taken Genting Highlands over 30 years to be recognised as world-class.
Do we have the magic wand to compress this into five years or less?
We may be able to physically complete construction within this time
frame but to be able to develop the character and image to draw the
type of clientele being targeted? I doubt it.
This casino-on-the-islands vision is out of place in the Singapore
context. Our inspiration should be a world-class city resort where
Singaporeans and tourists alike can enjoy the fruits of this success,
casino included. Consider the cost of development.
If this is intended for the rich and famous with local common folk
excluded, then this project should be completely funded by private
investors and not with taxpayers' money. This was the way Tan Sri
Lim funded Genting with his own money, by selling all his assets.
Successful casinos allocate nearly 80 per cent of their floor space
to cater to the masses, not the high rollers. It is the masses who
contribute to the profitability of the casinos.
As for the rich high-rollers, they are the ones who are smart enough
to win big, as what Kerry Packer did a few years back when he nearly
bankrupted Crown Casino and, in the process, ended up owning part
of it. If we then take the cheaper route of just building a nice casino
on the island and a small resort, then its destiny will be no different
from those in Townsville and Christmas Island — casinos which were
shortlived.
Given these factors, why then do we persist in building the casino
complex on some remote islands, at great cost to taxpayers, and which
is unlikely to be viable. Sadly, I believe it is due to two reasons:
Firstly, the vision and choice of location has not been made by entrepreneurs
and secondly, we lack the political will to go with the best economic
and most effective decision.
Instead, we kid ourselves by moralising about the ills of casinos
and dire effects on the population! Building a casino is a major decision
and, once made, the best possible option in Singapore's interest is
the one we should pursue. Thus, the best thing for Singapore is to
create something "Uniquely Singapore", one which is part Macau (masses)
and part Monaco (upmarket and exclusive).
To achieve this, the Singapore casino complex should be located next
to an already extensive and expansive existing infrastructure, the
Durians at the Esplanade. The Durians cost us over $650 million to
build. They are unlikely to be self-funding anytime soon and will
require government subsidies for a long time to come. These Durians
can only become viable if there is a casino next door and they are
leased to the casino operator. This arrangement will bring vibrancy
to the arts and the theatre scene, particularly if the condition in
granting the casino licence is also that top quality shows are brought
to this location and substantial contributions made to the local arts
scene as well. And that's not even counting the benefits to hotels,
restaurants and the waterfront area.
The best part is, the Government will not have to spend a cent. Someone
else will pay the rent and cover the cost of the Durians, bringing
a new quality of life to the area and create a truly unique tourist
hub where locals and tourists will mingle freely. A classic case of
having your cake and eating it too!
Political will is what is needed to take this route. It is ironic
that for a supposedly liberal and secular country like Singapore,
our mores relating to casinos are more Edwardian than some of our
neighbours who have to worry about religious intolerance to casinos,
and yet they have gone ahead and built them.
We need to have the foresight of Lim Goh Tong and the political will
of Tungku to make the bold decision and then make it work. After all,
we are much better off than Tan Sri Lim. He took three years to cut
a 20km road up the1,800-m-high hill to realise his dream and that
was just the start. But he had time on his side. We have no such hills
to conquer but time is not on our side.
Prithpal Singh is vice-president, Hotel Properties. This comment has
been written in his private capacity. |
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