Formula1 means business

It all started with Petronas's involvement in Formula 1 back 1995. Critics said, Petronas spent so much money and waste of public funds. In addition, then Malaysia's first involvement dated back in 90s with Alex Yoong became one of Minardi's driver, but unfortunately he did not make the cut. It was then followed by AirAsia as one of the William's team sponsor. Come 2010 yet, through another Malaysian companies Proton, Tune Group and Naza Group, dare themselves to venture into this dubbed as the pinnacle of motorsport event, and the most glamorous and expensive sports on earth. Naturally, again we heard the noises , that so much money are being wasted and Malaysian publics are once again denied from benefiting the tax payer money [ through Proton is a Government -Linked Company]. The money shall be better spent on improvement of public toilets !, said one the critics. 

I have written about it in great length, in one of the entries dated 17th & 21st December 2009, respectively. You may want to read more at Kenza4u

However, in summary venturing in Formula 1 is all about  business decision, and branding. Claim to have largest number of sporting events worldwide, one can just imagine the exposure to the potential market capitalization through the investment.

PETRONAS:  It is now a global brand. For example ; its lubricant products are now in the Europe market [ dubbed as the most sophisticated and established lube business market]. Petronas is making in-roads into the areas that were previously difficult and almost impossible to penetrate. Its E&P arms secured four (4) blocks out of 5 tendered during the recent concluded Iraq's oil blocks tendering exercise. PETRONAS is considered as one of the 7-seven sisters, along with Saudi Aramco [ Saudi Arabia], PDVSA [ Venezuela], Petrobras [ Brazil],  NIOC [ Iran], Gazprom[ Russia], and of most influential national oil companies and the only members where it does not sit on any largest reserve of hydrocarbon in the world. and not even an OPEC members. Seven Sisters Oil Companies

I am sure, the involvement in Formula 1 is yet another effort to make Malaysian companies to become global champions, emulating PETRONAS' success. Hopefully, one day Proton will compete head to head or collaborate with industry player like Mercedes, BMW, Audi and Ferrari.

AirAsia, will become a global brand competing and collaborating with Virgin?

Naza Group will become another global company with diverse business interest globally.

I read the following news in the newspaper with great interest ;

Lotus Racing teams up with LG

KUALA LUMPUR: Lotus Racing has teamed up with LG Electronics (LG) to enhance the Malaysian Formula One (F1) team’s technical ability in its maiden F1 World Championship.
The Star after securing sponsorship deals with Maxis [ another Malaysian Company] and CNN.

Another news;

Door of opportunity to open for Emas

A major car company in Europe is interested in joint development and marketing of Proton Holdings Bhd's planned global car, called Emas, people close to the national carmaker said.

Business Times NST

Don't you think it is now making a business senses ? and the investment starts to bear the fruits ? My view has always been, if the business decision is made with clear mission and vision, together with good comaderie and good leadership, with it will strive and goes far.  It has to have the right ingredients, even for the food and the cake to taste good , right ?

DISCLAIMER: Notice :Opinions, stories , thoughts expressed are blogger's own and do not necessarily represent the views of the institution or the organizations by which the blogger is employed or any specific person who so ever, either dead or alive.