Malaysia to pull out of F1 after 2018 season

MALAYSIA will discontinue its Formula One Grand Prix race after 2018 due to falling revenues, a government minister said on Monday, waving the chequered flag on one of Asia’s longest-running F1 races.

The economic problems besetting the sport are taking too much of a toll and Malaysia will not renew after its current contract expires in two years, Tourism and Culture Minister Nazri Aziz told local media.

The race’s future had been up in the air after officials said last month they were reassessing their commitment to the event amid ebbing television viewership and anaemic ticket sales.

“We spend 300 million ringgit [$67 million] per year but are not getting 300 million back,” Nazri told state-run Bernama news agency. “There are no returns on the F1 Grand Prix.”

He noted that attendance had declined despite the high cost of staging the race, which has been held at the Sepang circuit near Kuala Lumpur since 1999.

“I think the people have lost interest,” he said.

The race has faced intensifying competition, particularly from the glittering night grand prix in neighbouring Singapore, just as energy-exporting Malaysia has seen its government revenues sapped by weak world oil prices and slowing economic growth.

Formula One races are often run at a loss but they are attractive to many cities because of their prestige and exposure to global audiences.

Malaysian officials have said Sepang, which can accommo- date 120,000 fans, drew just 45,000 to last month’s grand prix, and added that race-day TV ratings were also poor.

Official figures show F1 has shed 200 millionion TV viewers globally since 2008.

In September, er, US firm Liberty Media announced a takeover of F1,1, including a new chairman an and plans for greater penetrationnetration in the US to tryry and steady the ship.p.

M e a n w h i l e , Ecclestone (picpictured, AFP) said aid h e w a n t s t o st r i ke a “longgterm” deal witht h Singapore t his is yea r, pl ay i ng g dow n e a r l ier r comments that at t he c it y-st ate e is look i ng to drop its iconic night race. He claimed his initial comments had been taken “in a funny way” by a German auto magazine which quoted him as sayings that Sing a pore no l o nger wanted to host F1. “F1’s stand is to hopeful hopefully continue in S i n g a p o r e ,” t h e 8686-year-old told S i n g a p o r e ’ s S St ra i t s Times n e w s p a p e r . “Everybody is happy to be in Singapore and [ w e ] d o n’t want to lose Singapore. “N e g o t i a - tions are ongoi ing and will be sorted out . . . before the end of the year, I’m sure. We want to extend long-term. We’ll see what happens.”

But Germany’s Auto Motor Und Sport quoted him as saying Singapore wasn’t looking to renew its contract, which will expire after next year’s race.

“Yes, the grand prix has cost Singapore a lot of money, but we’ve also given them a lot of money. Singapore was suddenly more than just an airport to fly to or from somewhere.”

“Now, they believe they have reached their goal and they do not want a grand prix any more,” Ecclestone added, according to t he report.

When contacted, a Singapore Grand Prix spokesperson said: “We don’t comment on ongoing commercial negotiations.”