MALAYSIA TO PULL OUT OF F1

KUALA LUMPUR: Malaysia will discontinue its Formula One Grand Prix race after 2018 due to falling revenues, a government minister said, waving the checkered 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 on Monday. The race’s future had been up in the air after officials said last month they were reas- sessing 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. There are no returns on the F1 Grand Prix,” Nazri told staterun Bernama news agency.

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 accommodate 120,000 fans, drew just 45,000 to last month’s grand prix, and added that race-day TV ratings were also poor. In comments on Twitter last month, Sports Minister Khairy Jamaluddin stressed the competition from other events outside of Malaysia.

“F1 ticket sales declining, TV viewership down. Foreign visitors down b/c (because) can choose Singapore, China, Middle East. Returns are not as big,” he said. Official figures show Formula One has shed 200 million TV viewers globally since 2008.