Malaysia Pulls The Plug On Formula E

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The season-ending Formula E race will not take place in Malaysia next year. (Formula E pic)PETALING JAYA: Malaysia has withdrawn as host of next year’s Formula E-Prix grand finale due to startling upfront financial demands by the owner of the world championship for electric cars.
The friction between Formula E and its local partner, Sports Tech Holdings, was triggered by a huge rise in the rights fee, and an unexpected escalation in commercial charges.
Formula E made the unpalatable offer after Sports Tech decided to move the venue from the KL City Circuit to the Sepang International Circuit (SIC).
While Formula E was keen on holding the event to its expectations in Kuala Lumpur, Sports Tech chose SIC due to technical challenges on the street circuit in the city.

Sports Tech CEO Wan Agyl Wan Hassan said: “The new race fees are beyond our financial capacity, and we did not want to financially burden the government.”
Wan Agyl Wan Hassan.Wan Agyl lamented that the costs of holding the race were too high, while the potential returns were limited. “If there is no economic value, why should we continue?”
He did not disclose the amount sought by Formula E as it cannot be shared with others under a non-disclosure agreement between both the parties.
The withdrawal has dealt a big blow to Sports Tech that was in an advanced stage of planning to bring back the E-Prix to Malaysia after a decade.
Wan Agyl said talks on the financial structure between both parties got stuck in the pit after the event received the go-ahead from Malaysian authorities about a month ago.
He said: “Our decision to step back from this opportunity stems from differences in expectations regarding the event’s scope and financial framework.
“The economic conditions and the scale of investment required did not align seamlessly with our strategic priorities or financial planning.
“The significant upfront costs, coupled with our assessment of the potential returns, led us to conclude that a re-evaluation of our involvement was necessary.
“This decision reflects our commitment to aligning our ventures with Malaysia’s economic realities and our strategic objectives.”
Sports Tech secured conditional rights from Formula E earlier this year to manage the final race of the competition until 2030, with plans to change the perception of electric cars and accelerate the adoption of EVs (electric vehicles).
It was projected that next year’s grand finale could inject some RM157.5 million into the local economy through visitor spending and create over 10,000 jobs.
Additionally, it was forecast that the event could contribute RM6.73 billion to the country’s economy over the next decade.
Formula E, officially known as the ABB FIA Formula E World Championship, is an open-wheel single-seater motorsport competition for electric cars.
Malaysia hosted the Putrajaya E-Prix, a race on the Formula E circuit, in 2014 and 2015, at a specially designed street circuit in the administrative capital.
Initial ambition, new focus
Wan Agyl said the initial ambition was to introduce Formula E to Malaysia as a beacon of sustainable technology and advanced motorsports, “reflecting our dedication to environmental responsibility and innovation.”
It was also envisioned to accelerate advancements in smart urban mobility and enhance the country’s international profile in green technologies, he added.
He said: “We understand that this decision may disappoint the motorsports community and fans and we apologise for any anticipation this may have caused.”
Wan Agyl acknowledged the guidance provided by youth and sports minister Hannah Yeoh and her team, and Motorsports Association of Malaysia president Mokhzani Mahathir.
He thanked Tourism Malaysia and SIC for their partnership and readiness in what would have been a significant logistical undertaking.
“Our focus now shifts towards other potential sporting events that promise greater alignment with Malaysia’s economic landscape and public interest.
“We aim to foster sustainable growth in sports, focusing on events that can be integrated more naturally into our community and economic fabric,” he said.
“We remain committed to our vision of enhancing Malaysia’s presence on the international sports stage through initiatives that are both economically viable and culturally impactful,” he said. - FMT

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