1Malaysia F1 Team: Government Has No Equity, Proton Plays A Small Role

Our very own 1Malaysia F1 Team, to be named Lotus F1 Team, will have a start-up capital of RM 168 million and a baseline annual budget of about RM 308 million. But taxpayers can heave a sigh of relief because the government will not be investing any money through any government-linked companies (GLC).

Instead, the F1 project is to be privately financed by joint owners Tune Group, Naza Group and Litespeed UK, while Lotus will be the team’s constructor. Tune Group is owned by Datuk Seri Tony Fernandes and Kamarudin Meranun. Naza Group is headed by SM Nasarudin SM Nasimuddin.

According to Fernandes, private funding will be between RM 110 million to RM 165 million a year, with sponsorship covering the rest of the yearly budget. With Petronas’ sponsorship deal with BMW Sauber expiring this season, 1Malaysia F1 Team has approached Petronas, with plans to speak to Malaysian Airlines, Genting among other organisations. He also noted that most sponsors are based in Europe, but Asia-based sponsorship could feature more prominently in the future.

Proton's role will be restricted to the licensing of the Lotus brand to the 1Malaysia F1 Team. The partnership license will likely include a number of benefits for both Lotus and Proton with regards to employment opportunities, marketing rights and technology transfer.