CEO Aims to Finish Casino Resort by 2010
By CHING-LI TORMay 5, 2008; Page B6

Taking note of the lucrative regulated gambling market in the Asian-Pacific region, which is forecast to grow 16% a year to US$30 billion by 2011, the Singapore government rescinded its 40-year-old ban on casinos and in 2005 kicked off a grueling and intensely scrutinized bidding process to choose two casino operators.

After losing an attempt to snare the first license, won by the Las Vegas Sands Corp. of the U.S. for a casino at Marina Bay, Tan Hee Teck and a core team of 10 in late 2006 clinched the competitive bidding for the second integrated resort/casino license for his company, Malaysia's Genting Bhd. and its 50.4%-owned Genting International PLC subsidiary.

Today, Mr. Tan, 52 years old, is using his two decades of gaming-industry experience to lead a staff of more than 170 in a race to bring to fruition by early 2010 their concept for Resorts World at Singapore's Sentosa Island. The ambitious S$6 billion (US$4.4 billion) project will sprawl across 49 hectares, and include attractions such as a Universal Studios theme park, one of the world's largest oceanariums, six hotels offering 1,800 rooms and, of course, a world-class gambling casino meant to attract Asia's rich and famous.

For spearheading Genting's successful bid against two other international contenders, Mr. Tan was promoted to chief executive of Resorts World at Sentosa last January from his role as chief financial officer for the Singapore-listed Genting International, which has a market capitalization of S$5.86 billion.

Clinching the license proved to be the easy part. Mr. Tan, who joined the Genting Group in 1982, has had to deal with several curve balls, such as the rising cost of sand, for landfill, which helped inflate the project cost from an initial S$5.2 billion; and a botched joint venture with Macau casino tycoon Stanley Ho, which ran afoul of Singapore's stringent casino regulations. Resorts World will be Mr. Tan's seventh and biggest casino-resort development, after managing casinos in Australia, the Bahamas, Malaysia and the Philippines.

Mr. Tan left Genting in 1996 to join and later become chief executive at Waterfront Group, a Malaysian stock-brokerage company that is now CMY Capital, an investment holding company. He subsequently became chief operating officer at another stock brokerage, DBS Vickers Securities in Singapore, before rejoining Genting in 2004. He is a fellow of the (UK) Association of Chartered Certified Accountants, and a graduate of the advanced management program of Harvard Business School at Harvard University. Tor Ching Li interviewed Mr. Tan in Singapore.

WSJ: What was the biggest lesson you learned from your first job?

Mr. Tan: My first job was...teaching science to secondary 2 [eighth-grade] students. It was my first experience being a coach and has served me well since. I have always considered myself a mentor to my younger colleagues in all the organizations that I have worked for.

WSJ: Do you have a favorite business book?

Mr. Tan: "Strategic Marketing Management," [edited] by Robert J. Dolan. Marketing is the soul of any company. This book has many useful articles that we can apply in various situations and in many industries. One example is how to succeed through differentiation.

WSJ: What principle of management do you wish you knew when you were starting out in your field?

Mr. Tan: The psychology of managing people. As I have always been task oriented, I tend to overlook the softer side of being a manager.

WSJ: What do you wish every new hire knew?

Mr. Tan: Common sense, which isn't actually very common. I am not sure if this can be taught, but certainly if one is immersed in the right environment, it helps hone judgment.

WSJ: What is the most important piece of technology you use personally?

Mr. Tan: I have a Nokia E61 [smartphone] that controls my life, although sometimes I wish that it hadn't been invented.

WSJ: Is there a difference between integrated resorts in Asia and the rest of the world?

Mr. Tan: Different countries have different customer profiles. In the Bahamas, the clientele was 90% American. At Resorts World, we expect and have tailored facilities to cater to clients mainly from Southeast Asia, India, China and the Middle East. For example, we have entire floors with rooms that can be linked up for larger families that come from the Middle East. While Americans don't mind spending more on their room, Asians tend to prefer to save on the room while spending more on entertainment, so we provide for this.

WSJ: Given the intense competition of existing and up-and-coming integrated resorts, how do you keep ahead of the pack?

Mr. Tan: Differentiation is absolutely key to ensure that we are ahead of the curve in our product position and creating top-of-the-mind awareness to our customers. In our industry, we have to continually predict trends and refresh our product to ensure our relevance in the marketplace. Singapore coined the term "integrated resort," but of late, the term has frequently been misused to refer even to stand-alone casinos that have neither attractions nor facilities. I would say that the only true IRs are in Singapore, where the gaming complex is part of a megaleisure-and-entertainment destination that includes world-class family attractions.

WSJ: Is there an instance when you felt you let your company or colleagues down? If so, what did it teach you?

Mr. Tan: Soon after rejoining Genting in 2004, I was involved in negotiating a pretty large business deal and didn't push this deal harder through the board for approval. We didn't conclude the deal and it turned out to be a gold mine. I had believed in it, but I was not vocal enough. Conviction must be translated into determination.

WSJ: What was the toughest decision you've had to make as a manager?

Mr. Tan: During the Asian economic crisis about eight years ago, the stock-brokering business went through a very rough patch. In order to keep the business afloat, [DBS Vickers Securities] had to lay off a number of staff. The pain is unforgettable.

WSJ: What is the most satisfying decision you make as a manager?

Mr. Tan: At the end of every financial year, when the results are good, the most satisfying decisions are made to communicate and share the spoils with fellow colleagues in special bonuses or incentives.

WSJ: Would you recommend that someone starting out in your field attend business school, or skip the M.B.A. and learn along the way?

Mr. Tan: The M.B.A. isn't a necessity but it is good to have, especially if one can grasp the analytical lessons of the case studies presented in class. It is important to experience and understand the basics of management, finance or whatever your interest is.

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