Malaysia Pulls Out Of Hosting Formula E-Prix Grand Finale Due To Financial Disagreements
The grand finale was projected to inject RM157.5 million into the local economy and create over 10,000 jobs.
By Sadho Ram — 20 May 2024, 03:26 PM
Malaysia has withdrawn from hosting the 2025 Formula E-Prix grand finale due to financial disagreements with the championship organiser
FMT reported that Sports Tech Holdings, the local partner for the event, cited "unpalatable" increases in fees and commercial charges demanded by Formula E as the reason for their withdrawal.
Sports Tech chief operating officer Wan Agyl Wan Hassan said they decided to move the venue from the KL City Circuit to the Sepang International Circuit due to technical challenges, but Formula E did not agree.
"The new race fees are beyond our financial capacity, and we did not want to financially burden the government," Wan Agyl said while lamenting that the potential economic returns were limited.
"Our decision to step back from this opportunity stems from differences in expectations regarding the event's scope and financial framework [...] 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," he said.
"If there is no economic value, why should we continue?"
He did not reveal the specific amount demanded by Formula E due to a confidentiality agreement.
The government had only given its go-ahead for the event last month
According to Wan Agyl, the decision to withdraw reflects the company's "commitment to aligning our ventures with Malaysia's economic realities and our strategic objectives".
Separately on LinkedIn, he shared that as a proponent of sustainable transportation and innovative urban mobility solutions, the withdrawal from hosting the Formula E race is a significant step back for Malaysia.
"Formula E represents more than just a race; it's a platform for advancing electric vehicle technology, promoting sustainable practices, and showcasing our commitment to a greener future. Our participation would have bolstered our standing in the global movement towards eco-friendly urban transportation.
"While this news is disappointing, it also underscores the need for continued advocacy and investment in sustainable transport initiatives," he said while expressing hope for future possibilities.
Previously, Malaysia hosted one Formula E event, known as the Putrajaya E-Prix. It was held on a specially designed street circuit in Putrajaya, measuring 2.560km in length and featuring 12 turns, in 2014 and 2015.
It was estimated that the grand finale could have injected some RM157.5 million into the local economy and created over 10,000 jobs
It was also forecasted that the event could have contributed RM6.73 billion to the country's economy over the next decade, as Sports Tech had secured conditional rights to host the race until 2030.
