Genting Highlands started operations in May 1971. Soon after that, I applied to the Treasury for pioneer status.

Although I had learnt earlier that due to its nature of business, Genting Highlands did not qualify for pioneer status, I still proceeded to make an application. This was because I maintained that tax incentives were vital for us at the initial stage of development.

A dialogue with six senior officials from the Treasury, Inland Revenue Department, Attorney General's Office and the Ministry of Trade and Industry was arranged. But I was advised by a senior management staff to give up the idea. With a smile, I told him: "Don't worry. You just accompany me there and be my interpreter."

As soon as the dialogue began, one of the Government officials told me straight in the face that the Genting project did not qualify as an industry for pioneer status. He said that not only did it not qualify for tax incentives, it should, in fact, pay higher tax like any other casino in the world.

I said I begged to differ. I went to great lengths to explain that giving pioneer status to Genting Highlands would bring benefits instead of losses to the Governnment.

I said that although Genting was making an annual profit of RM2 million, 40% or RM800,000 went towards the payment of tax, leaving only RM1.2 million for reinvestment. For this reason, its development was bound to be slow.

If Genting Highlands was given a five-year tax holiday, all the profits we made could be used for the development of hotels, tourist facilities, man-made lakes, a cable car system, golf courses, the Chin Swee Caves Temple, and other projects.

The resort's fire-fighting services section was
handed to the Government in 1997.

When these projects were completed, our revenue would increase many folds. As a result, the tax payable on the sixth year could well exceed the total amount of tax exempted during the five-year tax holiday period.

I argued that granting pioneer status to Genting Highlands was like giving it a five-year Government loan which would be more than repaid after the sixth year. After having listened to me, the officials were convinced. They accepted my arguments and promised to recommend to the Government to grant pioneer status to Genting Highlands resort. The Government accepted their recommendation and we were given a five-year pioneer status with effect from May 8, 1971.

I must thank the Government for its sound decision in granting Genting Highlands the much needed incentives at its initial stage of development. Because of the five-year tax holiday, a huge amount of funds became available for reinvestment and Genting Highlands was able to increase its revenue substantially.

The taxes collected later by the Government far exceeded the total amount exempted during the five-year tax holiday period. This has turned out to be a win-win situation for both Genting Highlands and the Government.