Genting Malaysia asks employees to accept reduced pay; executives to take leave without pay
Gaming & hospitality giant Genting Malaysia has confirmed that it has asked its employees to agree to a temporary reduction in salary, while some executives have also been asked to take one day off each week without pay.
In order to cut costs, Genting Malaysia asked its senior employees accept a temporary salary reduction of 15 per cent to 20 per cent. Executives have also been asked to agree to take a leave without pay once in a week. The decision to temporarily reduce salaries of employees has been taken amid ongoing business disruption and economic hardship caused by COVID-19 pandemic.
In the memo to employees, the operator explained that it was trying to cut costs as international travel would likely remain dim for the many months to come. Despite the availability of COVID-19 vaccine, governments are still advising people to avoid unnecessary travel.
Lee Choong Yan, president & chief operating officer (COO) of Genting Malaysia, said in a statement that cost-cutting measures like salary reduction are crucial to ensure the sustainability of the company’s business as well as to protect maximum possible number of jobs.
Lee Choong Yan, president & chief operating officer (COO) of Genting Malaysia, said, “We need to control Resort World Genting’s cost base to ensure the sustainability of our business and to help protect as many jobs as possible. Even with the recent availability of vaccines, tourist traffic to RWG (Resorts World Genting) is expected to remain subdued and uncertain in the short term.”
Genting Malaysia, the owner and operator of Resorts World casinos, has properties in Malaysia, Singapore, Bahamas, the United States, and the United Kingdom. The company’s oldest casino resort is Resorts World Genting, which was opened in 1965. Formerly called Genting Highlands Resort, this property offers more than 10,000 hotel rooms, with 200,000 square feet of gaming space, shopping malls, and theme parks.
Those who will accept the aforementioned salary reductions and time off without pay will receive lower pay effective immediately through the month of May this year.
This is not the first time when the Malaysian casino operator has asked its employees to accept reduced salaries. Previously in April 2020, its workers in the gaming & hospitality segment were asked to accept reduced compensation. At that time, the company had announced salary reductions for all of its workers across the group.
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