From the liquidity position of GMB, it is true to say that GMB does not need to rely on external funding to fund its operations thus saving it from finance costs and also fulfilling its shareholders needs of maximising wealth.
In Malaysia, GMB’s main resort, Genting Highlands Resort, is situated at the peak of a hill thus making it an ideal tourist attraction due to its cooling weather and the availability of various entertainment facilities for all ages.
From the annual report, it is evident that GMB places particular importance on its internal control system. GMB has implemented the Control Self-Assessment (CSA) to formalise its risk management process. With CSA, all departments and business areas are required to identify and evaluate controls within key functions and activities of their business processes.
(Statement of Internal Controls, Annual Report 2008)
With GMB’s main business in the hospitality and leisure industry, business fluctuates seasonally with high accommodation during peak periods especially during holiday seasons while only low accommodation during normal times. In order to lower the risk of fluctuating revenue, GMB has diversified into various other activities such as those stated above to provide it with a steady stream of revenue all year round.
With Singapore legalising gambling in its country, GMB have took the opportunity to open a resort casino in the country in order to capture the lucrative high rollers market there. Other than Singapore, GMB has made further investments in other countries in developing its name as one of the international gambling and entertainment giants in the world.
The presence of The Sands empire opening its premise, the Marina Bay Sands in Singapore have be a threat to GMB. There is a risk of loss of...