In Penang, from a high of 484 horses in January 2003, the number of horses based at the Penang Turf Club (PNTC) has dropped to just 290 horses as of this month.

This has prompted the innovative PNTC to dangle a RM1 million carrot for its ordinary members to purchase horses at various sales in Australia, New Zealand and England to boost its horse population.

The Cash-Incentive-for-Purchase Scheme (CIPS) is designed to increase the horse population and also the quality of horses at the PNTC and was outlined in a circular to its ordinary members last week.

The circular states that with the impending resumption of cross-border racing and the staging of international races in the not too distant future, there is a need for the Club to improve on its bloodstock quality so as to be more competitive.

"In terms of benefit to the Club, a larger home-based horse population would lead to more home-based entries during on-course meetings. Consequently the reduced number of outstation entries would minimise the cost of transporting those horses to and fro the Penang races.

"The aim of having better quality horses is to induce more professional and competitive races, which in turn would attract a larger crowd and boost the tote turnover. These improvements might also draw better trainers and jockeys to the Club, adding more "colour" to the sport.

The CIPS aims to make it attractive for ordinary members of the Club to purchase better quality yearlings, two-year-old horses or racehorses and base the horses at the Club.

Depending on purchase price and subject to qualifying conditions, an owner purchasing a racehorse under CIPS shall be eligible to receive a cash incentive ranging between 8% and 18% of the purchase price for horses bought at Magic Millions Sales, which sponsors the annual Malaysia Magic Millions Classic worth RM325,000 at the Club.

There is also a 5% incentive for the purchaser to lodge the horses at approved studs/farms prior to coming to Penang. The incentives are subject to a ceiling of between A$6,500 (RM19,175 at current exchange rate of 2.95) and A$35,000 (RM103,250).

For purchases made at William Inglis & Son, New Zealand Bloodstock Ltd and Tattersalls Ltd sales, the incentive based on purchase price ranges between 5% and 7.5%.

The 5% incentive for the purchaser to lodge the horses at approved studs/farms also applies and the ceiling for incentive has been set at between A$5,000 (RM14,750) and A$19,322 (RM57,000).

The vendor studs/farms which are supporters/sponsors of the Club and whereby the purchaser will qualify for the additional 5% incentive are Wadham Park, Durham Lodge, Mungrup Stud, Lyndhurst Farm, Oakwood Farm and Dawson Stud. (This is subject to change by the Club without prior notice.)

Among the conditions to incentive are:

* The purchaser of the horse must be an ordinary member of the Club at the time of purchase and also the registered sole owner or stable manager of the horse during the incentive period.

* A sum of 25% of the incentive will be paid after the horse has been registered and based continuously at PNTC for a period of not less than 6 months. The balance of 75% of the incentive will be paid after the horse has been based continuously at PNTC for a period of not less than 18 months or when the horse has scored at least four wins, whichever is sooner.

* In the event that the horse is put down or de-registered for any reason whatsoever after it has been officially registered and based continuously at PNTC for a period of less than 18 months, the registered owner or stable manager is eligible for the sum of:

- 15% of the total incentive if the horse has been based continuously at PNTC for a period of less than 6 months, or

- 30% of the balance of the incentive if the horse has been based continuously at Penang Turf Club for a period of 6 months and above but not over the 18 months period.

* A maximum limit of RM1 million has been allocated towards the implementation of this scheme. Disbursement of the fund shall be on a "first come first served" basis and upon the exhaustion of the fund limit of RM1 million, the Club will no longer partake in the subsidy of subsequent purchase of horses under this scheme and no further payment whatsoever will be made under this scheme notwithstanding that the full entitlement of the incentive has not been paid.

* PNTC reserves the right at its sole discretion to accept or reject any application for the incentive, to reduce the percentage of the incentive or withdraw the incentive during the currency of the scheme without assigning any reason thereto. In any case of dispute or ambiguity, the Club holds the sole right to the final say in the qualifying and/or awarding of incentive.

* Any decision made by the PNTC Committee pertaining to this scheme of increasing the horse population and also quality of horses at Penang Turf Club shall be final and conclusive and cannot be questioned and/or challenged in any court of law.