‘We can’t operate at a loss year in, year out’ – closure looms for struggling Penang Turf Club

The Penang Turf Club, Malaysia’s oldest thoroughbred racing venue, is set to stage its final meeting on May 31, bringing an end to the once-thriving sport in the city after 160 years.

An extraordinary general meeting slated for next month is likely to see the PTC wound up and its assets, including the valuable site in which it sits, sold off and the proceeds distributed to its members.

There are a small number of Australian racing industry figures who are among the PTC membership of just 520, which is set to vote on the immediate future of the club at the EGM on April 20.

It is almost certain that they will vote in favour of the dissolution of the PTC, although its general manager and secretary Leow Khin Ming did not wish to predict the outcome of the vote at the EGM, the second held on the matter.

If a resolution to end racing at Penang is passed – a similar motion was passed in July last year to proceed with a sale of the land – the members will be the financial beneficiaries of the sale of the racecourse site and club assets. 

The huge windfall is one of the major reasons why there is little to no appetite from members to reinvigorate racing in the coastal city of Penang, a popular tourist destination.

Tenders were called for the sale and development of the 81-hectare site in Batu Gantong last year, but the PTC rejected the proposals, deeming that “no qualified tenders were received”.

Valuations of the 81-hectare parcel of land and associated assets vary wildly but it is expected that if the site is sold it could realise between 2 and 3 billion ringgit (A$1.07 billion).

“The second EGM will be to approve that the club be dissolved and if the club is to be dissolved and (the motion) is carried, racing as we know it will cease, among other things,” Leow told The Straight.

“That (scenario) is dependent on, assuming we get the go-ahead on the 20th of April as to whether the committee would like to stick on to the 31st of May for its last meeting.

“Even if, for example, the resolution passes on 20th of April, a date will have to be announced by the committee as to what the cut-off date is for racing activities at the club.”

Penang is not scheduled to have another race meeting until Sunday, May 4, where it will clash with Kuala Lumpur’s Selangor Turf Club.

It also has fixtures programmed for May 10 and 31, the probable final meeting for Penang Turf Club.

There are three meetings programmed for June and another two in July, but they are almost certain not to be held.

Racing continues in Malaysia at Selangor, the country’s biggest training centre and racing venue, and the Perak Turf Club at Ipoh.

Penang has struggled financially owing to small fields, with meetings often conducted in recent times with three and four races, making it unviable to continue under the status quo.

Just 20 horses raced at Penang’s March 8 four-race card. Meetings were cancelled in January and February due to insufficient nominations.

Penang did hold the Penang Gold Cup, a local Group 1 race conducted over 2000m worth 300,000 ringgit (A$107,743), on December 28 with the HY Cheng-trained Lucky Magic winning what will be the final running of the club’s signature race.

Administrators blame illegal bookmakers and exchanges such as Citibet for the demise of racing at Penang, with the unregulated online operators siphoning money away from the Malaysia and Singapore parimutuel totalisator pools where much of the country’s race clubs revenue is derived.

The Asian Racing Federation last year estimated that Citibet alone accounted for turnover of more than US$50 billion on horseracing globally on an annual basis.

“It is especially (disappointing) for those who have been here for so many years, but unfortunately, we can’t operate at a loss year in, year out,” Leow says of Penang racing’s woes. 

“Through the advent of the internet, you can actually bet illegally … and it’s not regulated here.

“That is one of the determining factors that the club has looked into and (similar) things like that.”

The lack of legal off-course betting options, such as online betting via the Malaysian totaliser or through retail venues, has also hamstrung the industry in Malaysia.

As Singapore exits, is Malaysia ready to step up as South East Asia’s next racing frontier?

With Singapore racing’s swansong this Saturday, Tim Rowe explores what’s next for racing in South East Asia and how the thoroughbred industry in Malaysia is best-placed to take up the mantle left by the demise of Kranji.

The StraightTim Rowe

The looming end of racing in Penang follows that of Macau and Singapore closing last year.

“You take, for example, Turkiye, where there’s about 4000 off-course terminals over there. Racing is part of their lifestyle,” he said. 

“Macau closed, after that it was Singapore, of all places. It has become too expensive to race, in short.” 

If the PTC is dissolved, there appears to be a way to go before it is able to finalise its accounts.

“What our local rules state, if the club is to be dissolved, effectively all the properties belonging to the club need to be disposed of, sold off, minus all the liabilities, the IOUs,” Leow said. 

“There will be retrenchment benefits for the workers and, after getting tax clearances from the local tax department, whatever is left will be distributed equally amongst the members.”