KUALA LUMPUR: Genting Malaysia Bhd has embarked on austerity measures to ensure the long-term sustainability of its business.
At the onset of this pandemic, the management team had volunteered to have their salaries reduced up to 20 per cent, Genting Malaysia said in a statement today.
"In order to further manage costs and to mitigate the adverse financial impact, Genting Malaysia has had to assess and recalibrate its cost structure including staffing needs based on its current and anticipated future operating capacity," it said.
The group said its unit Resorts World Genting's businesses support more than 70,000 jobs in Malaysia.
This includes its own employees, third party businesses, local suppliers and contractors.
"Unfortunately, as the pandemic persists, so does the company's financial losses. Hence, Genting Malaysia has had to make a very difficult decision of restructuring its Malaysian operations and rightsizing its workforce," it added.
Besides RWG, Genting Malaysia owns and operates Resorts World Awana, Resorts World Kijal and Resorts World Langkawi.
For the first time in its 55-year history, RWG has been closed since March 18 this year pursuant to the Movement Control Order issued by the government.
Genting Malaysia suffered a net loss of RM417.96 million in the first quarter of 2020 due to the temporary disruptions in its worldwide operations from the pandemic.
The group said its financial performance and operations for the rest of the year remained uncertain at this point in time.
In spite of the restructuring exercise, the group said when RWG reopens for business, the company was confident that all its facilities and offerings would be operational.
"RWG is expected to continue with the completion of its outdoor theme park which is targeted to open in the second quarter of 2021," Genting Malaysia said.
The theme park, which will be named "Genting SkyWorlds", will have international class movie themed attractions and feature among others, movies from 20th Century Fox.
"Our businesses generate significant activities in the local economy and we remain committed to playing our role as a key contributor to the Malaysian economy as well as remaining one of the largest employers in the post Covid-19 crisis," it added.