Suncity Group is offering voluntary redundancy through a “Personal Career Reshaping Plan” due to the impact of the Covid-19 pandemic.
Macau.- Suncity Group Holdings has launched a voluntary exit scheme for employees.
The so-called “Personal Career Reshaping Plan” offers benefits such as extra allowances for employees over 60 years old.
It will also include a partial payout of social security contributions, an extension of medical insurance coverage, and career planning support services.
According to Macao Daily, Alvin Chau, CEO of the company, has issued a letter to employees, saying that the company is facing challenges due to the Covid-19 pandemic.
Chau stated: “For the company’s sustainable development, it is necessary to change the strategy, optimize the organizational structure, retain the core business, and respond to changes in the market environment.”
In March, the casino junket investor predicted a profit attributable to shareholders of approximately RMB750.4m (US$115.3m) for 2020.
The announcement came despite a 67 per cent drop in revenue for the year due to the financial impact of the Covid-19 pandemic.
The junket sector is facing challenges due to China’s restrictions against cross-border gambling services.
On March 1, China’s National People’s Congress approved an amendment to the country’s criminal law so that anyone who “organises” overseas gambling for mainland Chinese will be deemed to have committed a criminal act.
Although the law wasn’t designed specifically to stop junket operators working with Macau’s casinos, the absence of clarity is causing junket operators to avoid taking a risks.
The possible future use of virtual currency in Macau casinos could also have a serious impact on junket operators as it may render them unnecessary for the VIP sector.
The introduction of a digital currency could serve as another move against money laundering and tax evasion as Chinese authorities build their blacklist of overseas gambling destinations to which cross-border transfers are controlled.