Cambodia Investment Review
NagaCorp, a key player in Cambodia’s casino sector, announced in an official statement to the Hong Kong Stock Exchange the passing of its Founder and Senior Chief Executive Officer, Tan Sri Dr. Chen Lip Keong. Dr. Chen, a pivotal figure in the company’s journey, passed away on December 8, 2023, due to illness, marking the end of a significant chapter in the company’s history.
Dr. Chen’s leadership over 28 years was instrumental in shaping NagaCorp into a formidable name in the casino-resort industry. His entrepreneurial skills and strategic vision drove the company to remarkable growth, establishing a robust foundation and navigating it through various market challenges.
In response to this significant loss, the Board has acted to ensure leadership stability by re-designating Mr. Chen Yiy Fon, Dr. Chen’s son, as the new Chief Executive Officer, effective from December 10, 2023. Previously serving as the Chief Executive Officer—Operations since April 2022, Mr. Chen Yiy Fon is set to continue his father’s vision and lead NagaCorp into its next growth phase.
The company’s stock, however, reflected the market’s reaction to this transition. Following the announcement, NagaCorp’s stock dropped by 10% in a single day to HK$2.96, extending its year-to-date decline to 52.87%. This downturn highlights the market’s sensitivity to leadership changes, especially in companies led by influential figures like Dr. Chen and current Chinese tourist slump.
NagaCorp’s dominant position in the Cambodian capital with its NagaWorld complex and an exclusive casino license running until 2065, with a monopoly guaranteed until 2035, remains a strategic asset. This setup was a cornerstone of the company’s success under Dr. Chen’s guidance.
The Board, in its statement to the Hong Kong Stock Exchange, expressed deep sorrow and condolences to Dr. Chen’s family and gratitude for his invaluable contributions. “Dr. Chen was more than a leader; he was a visionary whose entrepreneurial spirit shaped the very essence of NagaCorp. We are committed to honoring his legacy,” the statement read.
Amidst these developments, the company reassured its stakeholders of its commitment to continuing its business operations in line with the established strategies. However, the market’s initial reaction underscores the challenges ahead for Mr. Chen Yiy Fon as he takes on the CEO role, tasked with both preserving his father’s legacy and navigating the company through current market conditions.
