In 2005, Singh began facing trouble in finding sponsors, and was unable to participate in half out of the eight rounds in the FIA Asia Pacific Rally Championship. His team itself did not have enough money to pay for mechanics and maintenance of his vehicle, and due to his absence from so many rounds in the championship, the FIA slapped him with a fine of 10,000 Euros. Singh did not even have enough money to ship his vehicle back to Malaysia from New Zealand, which itself would cost about RM57,000. Singh's plight made the headlines of a few newspapers in Malaysia, who had been informed that Singh was in the process of selling off his apartment to pay his fine and ship his car home.
When informed about the possibility of receiving public or government assistance, Singh refused such offers, stating that he believed he could find enough corporate sponsors to avoid burdening the public. Rather than accepting assistance from individuals, Singh said he would consider racing for another country. When informed, the Prime Minister of Malaysia, Abdullah Ahmad Badawi reportedly asked: "If Karamjit is a Malaysian and has been producing results and bringing honour to the country, why has support not been accorded to him?"
The Malaysian Sports Minister, Azalina Othman Said, was also reported as stating that she had been ordered to look into the matter, and that "we want to find out why the private sector have not come forward and secondly, if Karamjit has someone to manage him and put forward his cause in the right perspective so sponsors can come forward and use the spin-off from their association."
