Khazanah Nasional Bhd’s recent sale of Kidzania Singapore at a significant loss drew Prime Minister Datuk Seri Anwar Ibrahim’s attention. This transaction raised concerns due to the initial injection of RM165.52 million into the project by Khazanah and Boustead Holdings Bhd, the entities that launched Kidzania in Singapore in 2016.
According to a report from the Singapore Business Times, poor management of the theme park by Khazanah resulted in RM51.73 million in revenue and RM28.63 million in losses after tax.
Additionally, Kidzania owed RM184.17 million to creditors, with a significant portion of the debt owed to Khazanah subsidiary Theme Attractions Resorts & Hotels Sdn Bhd (TARH).
Similar circumstances appear to apply to Kidzania Malaysia, as Sim Leisure Group also acquired the Malaysian theme park in 2020. The Companies Commission of Malaysia documents indicate that TARH sold its 24.48 million shares to Sim Leisure Escape Sdn Bhd in 2021.
Anwar stated, “We will hold a meeting with them (Khazanah),” when approached by reporters after Friday prayers in Cyberjaya.
The comments came in response to a report by The Vibes, which revealed that Kidzania Singapore was sold to theme park operator Sim Leisure Group for a mere S$110,000 (RM379,398).
While reports suggest that Sim Leisure Group purchased Kidzania Malaysia for RM3.8 million, the project involved an initial injection of RM90 million for construction and pre-operating costs, involving Khazanah and Boustead Holdings.
Sim Leisure confirmed securing a lease agreement with Sentosa Development Corp for the premises where the discontinued KidZania Singapore is located. The lease was a condition under the conditional asset sale agreement signed with financially distressed Rakan Riang Pte Ltd in June 2020, which included the purchase of KidZania Singapore’s non-movable assets.
Rakan Riang, the joint venture company behind KidZania Singapore, is 80% owned by Khazanah’s leisure and tourism arm Destination Resorts & Hotels Sdn Bhd (DRH), formerly known as Themed Attractions Resorts & Hotels Sdn Bhd.
The remaining 20% is held by Boustead’s wholly owned subsidiary Boustead Curve Sdn Bhd. The other two conditions of the asset purchase, namely entering into an agreement for the KidZania brand with licensors Kidzania SA de CV and KidZania de Mexico SA de CV, as well as obtaining their consent for the KidZania Singapore asset purchase, were fulfilled in August of the previous year.
Recent reports indicate that Kidzania Malaysia, which failed to generate profit under its previous management, has brought in RM6.46 million in profits for its new owners by the end of 2022, as stated in a South China Morning Post article.
