Malaysia’s hopes of hosting Formula 1 races again appear increasingly unlikely, according to Hannah Yeoh, the country’s youth and sports minister. She highlighted the significant expenses involved, which stand as a major obstacle to bringing the world championship back to the Sepang International Circuit.
Yeoh emphasized the steep price tag required from the government, stating that the current deal with Liberty Media, which holds the commercial rights for Formula 1, demands about 300 million Ringgit (approximately $71.1 million) annually. Moreover, Malaysia would have to commit to a contract lasting three to five years, translating to roughly 1.5 billion Ringgit ($360 million) in total payments.
Financial Commitments Challenge Government’s Support
The substantial investment needed for an F1 event in Malaysia contrasts sharply with the funding allocated for local sports development. Yeoh pointed out that the amount requested for Formula 1 would be more than double the resources required to support over 10,000 Malaysian athletes in their training and competition programs.
Despite the financial strain, Yeoh suggested that hosting the race remains attractive to fans and the public, but she stressed that government funding is unlikely to be made available.
“Formula 1 is a prestigious sports event that is followed by fans around the world. So if we could afford it, it would be good to have it in Malaysia,”
—Hannah Yeoh, Youth and Sports Minister
“Those interested can connect with the SIC. We are open to this and can cooperate.”
—Hannah Yeoh, Youth and Sports Minister
Industry insights reveal that proposals lacking government backing are often seen as less feasible, as demonstrated by recent efforts in South Africa where the absence of public funding led to disorganization and skepticism.
Contractual Obligations and Competition Affect Sepang’s Prospects
Malaysia’s last Formula 1 Grand Prix occurred in 2017 before rising costs and waning government interest caused the contract to lapse. Azhan Shafriman Hanif, CEO of the Sepang International Circuit, expressed regret over losing the race and highlighted the difficulty of regaining such an event.
“We do not want to repeat the mistakes of the past. We let Formula One go and now it is very hard to get it back. I hope we don’t make the same mistake with MotoGP,”
—Azhan Shafriman Hanif, CEO, Sepang International Circuit
Shafriman is focused on securing MotoGP’s continued presence at Sepang, which lies close to Kuala Lumpur International Airport. He revealed the high costs associated with an F1 return, noting that race hosting fees are quoted at around $70 million per event, excluding additional setup expenses between 10 million to 20 million Ringgit. Altogether, reviving the race would require upwards of 300 million Ringgit annually.
“A lot of people are queuing so it won’t be easy. But if we are really serious about it, then maybe we can start the conversation.”
—Azhan Shafriman Hanif, CEO, Sepang International Circuit
Beyond Malaysia, a major roadblock to Sepang’s resurgence is the upcoming race project in Thailand. The Thai government has authorized a substantial 414.4 billion baht (approximately $1.27 billion) investment for a street circuit around Bangkok. This event aims to debut in 2028 and is viewed as the leading candidate for Formula 1’s next calendar addition.
Looking Ahead: Uncertain Prospects for Hosting in Southeast Asia
The financial burden and contractual constraints continue to complicate Sepang‘s efforts to welcome Formula 1 back to Malaysia. While public funding remains off the table for now, private entities and the circuit itself remain open to discussions about potential partnership models. Meanwhile, the growing competition from Thailand’s ambitious new race further narrows Malaysia’s window for a comeback.
As Formula 1 expands its presence in Asia, Malaysia‘s return hinges on finding financially sustainable solutions and navigating a crowded field of race promoters, with high costs and strict contract terms central to the ongoing debate.