In an 11 February filing, Asia-Pacific Strategic Investments Ltd announced it would establish a $60 million (£47.5 million/€57.2 million) casino and a $20 million bank in the Southeast Asian country.
The agreements were “formalised” with Francisco Kalbuadi Lay, Timor-Leste vice-prime minister and economic affairs and tourism minister.
On its website, APS describes itself as “a real estate developer focusing on the hospitality sector and retirement villages.”
‘A respectable, high-security, law-abiding casino’
Now it’s looking to branch out. Under the first agreement, APS “and its consortium” would build a five-star hotel and “a respectable, high-security, law-abiding casino.” If approved, it will be the first land-based gaming hall in the Southeast Asian republic.
Offshore gambling is legal in Timor-Leste. So are lottery games, wagers on cockfighting and “traditional fair gambles” like “kuro kuro” and “bola guling.” But as recently as February 2024, Timor-Leste President Ramos Hurta said he opposed other forms of domestic gaming, including casinos.
“I don’t want some poor Timorese to lose everything in gambling with sometimes tragic consequences,” he told Macau broadcaster TDM. “But if foreigners want to gamble online and Timor offers an online gambling possibility, fine.”
He has yet to publicly comment on the APS casino deal.
In need of new industry
Timor-Leste in the Malay archipelago could use an economic boost.
According to a World Bank report, the country’s long-term fiscal stability is at risk due to “high government spending and modest returns … from its Petroleum Fund.”
The report recommends “further investment in infrastructure, human capital and agricultural productivity” to unlock economic growth.
“Timor-Leste is at an important juncture,” said World Bank country representative Bernard Harborne. “To create jobs and boost growth, the country is encouraged to improve the efficiency of spending and diversify its economy.
“With the right reforms, the country can transition from high spending with low returns to strategic investments that drive growth, reduce poverty and secure its future.”
Per the second agreement, APS would establish a new bank in partnership with Banco Nacional de Comercio de Timor-Leste. It would control 60% of the venture.
New country, largely undiscovered
Founded in 2002, Timor-Leste is one of the world’s newest countries, and one of the least-visited. Fewer than 75,000 foreign visitors stopped here in 2019. By contrast, 1.55 million people visited neighboring Indonesia, 13.6 million visited Singapore and 15.4 million visited Bali.
APS has pledged to promote attractions like Mount Matebian, home of the 89-foot Cristo Rei statue, and maritime activities like whale-watching, crocodile-watching and scuba diving.
Controlling shareholder Oei Hong Leong and associates will issue $100 million in convertible bonds to fund the two projects.
APS and the Timor-Leste government may terminate either agreement with 30 days’ written notice, reports the Singapore Independent. The deals are also subject to APS shareholder approval.
Original article: https://igamingbusiness.com/casino/property-development/timor-leste-government-oks-first-casino-resort/
