Malaysia’s highly anticipated return to the Formula E championship has encountered an obstacle, leading to the nation withdrawing from its hosting duties due to concerns over substantial financial requirements.
The iconic Sepang International Circuit (SIC) was set to be the venue for the Formula E season finale for next year’s Gen 3.5 cars. However, the much-awaited event now appears to be in jeopardy.
Originally slated to take place at the KL City Circuit, the race was later moved to SIC, prompting tension between Formula E and its local partner, Sports Tech Holdings, who was responsible for the venue change.
According to reports, Formula E had preferred a street race near Kuala Lumpur, but Sports Tech Holdings made the decision to change the venue due to technical challenges. Friction between the parties arose from an increase in rights fees and commercial changes. The last time Formula E raced in Malaysia was in 2015, during the Putrajaya E-Prix.
Wan Agyl Wan Hassan, the CEO of Sports Tech, revealed that the new race fees were simply unaffordable and that burdening the government financially was not an option. The disappointment over the financial demands is evident, particularly as F1 has not returned to Malaysia since 2017 due to similar financial concerns.
Although Formula E typically contributes a substantial amount per race, around $100 million, Sports Tech decided that the economic conditions and the required scale of investment did not align with their strategic priorities or financial planning. Official figures regarding the rights fees have not been disclosed due to a non-disclosure agreement between Formula E and Sports Tech.
This decision has undoubtedly disappointed the motorsports community and fans, and Sports Tech has issued an apology for any false anticipation that might have been raised. This withdrawal is yet another setback for Malaysia, which has been striving to bring back a world-class single-seater racing championship to its shores.
As of now, the fate of the Formula E season finale in Malaysia remains uncertain, and it is unclear if the nation will reconsider its decision in the future. It is evident that financial concerns have been the main issue, and the motorsports community can only hope for a more positive outcome down the road.
As Malaysia grapples with the financial repercussions of withdrawing from hosting the Formula E, it sends a clear message about the challenges that come with organizing major international sporting events, especially in the midst of economic uncertainty.