The first rumor I heard about the Malaysia casino reopen was that they had plans to create a theme park like the Universal Studios Theme Park in Florida. No one could have taken my mind off the woes of the universal theme park because of the tremendous success it has had here in the US. Malaysia however is known for its slow and methodical development. This is surprising given the current state of the economy but given the fact that they are flush with cash they can probably afford this extravagance.
The casino is one of the oldest casinos in Asia and has been operational since 1963. They are located in the country’s largest city Kuala Lumpur. Many local residents and visitors are amazed by the quality and wealth of the buildings along the river, which makes for a great walking experience. It also seems a bit strange to have an indoor bowling alley in one of the hottest areas of the country. But there you are and if you can resist the temptation of an ice-cold drink you will be rewarded by the friendly ambience and great entertainment.
I was very excited about their plans to re-open the casino. Given the slow economic growth it is not surprising that these huge investments by the Malaysian government in this particular venture have not been fully exploited. So what went wrong? Well the answer lies in the simple concept of supply and demand and one of the main issues revolves around the population – or rather how many people want to gamble and how much the current supply can accommodate without causing too much pressure on the already overburdened resources of the state.
As a former student of economics, I know that increased public spending always leads to either an expansion of the money supply or a decline in the price level. And since the two are usually inversely proportional to the one will always affect the other. So, when the Malaysian government announced that they were going to reopen the Malaysia casino I was worried at first but then I realized that it was only a question of time before the prices start increasing again and so I decided to hold out a little longer.
Well, it was then that I came across news that the government had decided to double the amount of loan that they are giving to existing owners. This announcement made me very happy because, let’s face it, if the casino is doing so well so is the loan that has facilitated its operation. But this move has created a problem. Because now it is hard for new owners to find loans to fund their operations. If you are new in the industry then you should know what to expect.
You see, there are only so many places where you can get financing from. First of all you need a good credit rating and secondly, a lot of people are unwilling to lend money to start a business. This is mainly due to the questionable economic circumstances that the country is going through. Most people are afraid that the government might fall on hard times and ask them to pay back the money that they owe them. That is not a good sign when trying to build a successful casino business.
With the news that the Malaysian government has decided to triple the number of loans that they are giving out, this means that there will be even less competition between businesses to get funding from. Now that has got to be a good thing, right? Well, no. Because most casinos aren’t in the luxury department, meaning the food, drinks, gaming, general spending, and anything else that come with it. So unless your casino is super fancy, chances are that you will not be able to get anyone to partner with you and help you open. It could turn out to be the worst decision that the Malaysian government could make.
Remember, the last thing that you want to do is get taken advantage of by another casino. If you have done your homework, then you know which companies in Kuala Lumpur to partner with. This makes it a bit easier to figure out what your options are when it comes to funding for your new casino.
source https://trustedmalaysia.casino/malaysian-casino-reopen/
Kommentaare ei ole:
Postita kommentaar