Resorts World Genting Threatened With Shutdown by Malaysia Islamic Party

September 16, 2024

If the main political party in Malaysia were to take control of Pahang state, the location of Resorts World Genting, it would close the nation's sole casino.

Since the 2022 elections, the Malaysian Islamic Party (Parti Islam SeMalaysia, or PAS) has held 43 of the 222 seats in the federal parliament, the largest of any party. It now controls four of Malaysia's thirteen states.

The ultimate objective of PAS is to impose Shariah law in place of Malaysia's democratic system.

"Anything that can harm society, we must together support its destruction,” said Andansura Rabu, PAS’ deputy commissioner for Pahang, at the party’s annual gathering over the weekend, as reported by The Straits Times. “This isn’t a matter of religion, it’s a social issue.”

“Gambling is harmful, so we have to close it,” he added. “But it must be in accordance with the laws and Constitution.

Intricate system

Malaysia is a multiethnic nation with a complicated political structure made up of 13 states and 3 federal territories under a federal constitutional elected monarchy.

Peninsula Malaysia, the lower half of the nation's western peninsula, is home to conservative rural and coastal areas in the northeast and northwest, which make up the majority of PAS's voter base. Eleven of the thirteen states are on the Malaysian Peninsula, which also houses Kuala Lumpur, the federal capital.

Peninsula Malaysia is centered on Pahang. Although there is a sizable Muslim majority—roughly 75%—the people who live there are free to practice other religions. Regarding family law and religious observances, Shariah law applies to the Muslim citizens of Pahang.

Pahang's southwest corner is home to Genting Highlands, a hilltop area above Mount Ulu Kali in the Titiwangsa Mountains. Due to its convenient location—just an hour's drive from Kuala Lumpur—it was selected as a resort destination.

However, PAS wouldn't be able to close the Resorts World casino even if it were to win Pahang in the upcoming general election, which must take place before 2028. This is so because the federal government makes decisions about casino and gaming permits.

The Green Wave

After PAS surprised Malaysia's establishment by obtaining the most seats in the 2022 election—a political occurrence known as "the Green Wave" because of the party's colors—genting shares fell precipitously.

When investors saw that few of Malaysia's mainstream parties were willing to collaborate with PAS to create a coalition government, the stock began to rise again. Rather, the People's Justice Party, led by current Prime Minister Anwar bin Ibrahim, the Democratic Action Party, which is dominated by Chinese voters, and a few other regional parties came together to establish a majority.

An enormous entertainment complex called Resorts World Genting boosts Malaysia's economy by more than US$1 billion a year.