Malaysia has officially ruled out the return of Formula One in the near term, citing the heavy financial burden and competition for limited slots on the global racing calendar. The announcement was made by Sports Minister Hannah Yeoh on Thursday, reaffirming the government’s stance since the nation’s last race in 2017.
Background
Malaysia first hosted a Formula One Grand Prix in 1999 at the Sepang International Circuit. The track quickly became a favorite for its fast layout and tropical conditions, but the event was dropped from the F1 calendar after 2017. Rising hosting costs and declining attendance played a decisive role in the decision. Despite stepping away from Formula One, Sepang continues to host the annual MotoGP, which remains popular in the country.
Financial Hurdles
Minister Yeoh highlighted the steep financial commitments involved in hosting Formula One. Malaysia would need to allocate around 300 million ringgit (US$71 million) annually for hosting rights. Additionally, maintaining the Sepang International Circuit to F1 standards requires about 10 million ringgit each year.
Beyond annual costs, Yeoh noted that rejoining Formula One would bind Malaysia to a three-to-five-year contract with Liberty Media, the commercial rights holder of F1. This would translate into a commitment of approximately 1.5 billion ringgit over the contract period.
Competition in the Region
The regional landscape for Formula One hosting is becoming increasingly competitive. Singapore continues to stage its high-profile night race, while Thailand recently secured approval from its cabinet for a US$1.2 billion project to host F1 on the streets of Bangkok from 2028. This growing competition makes it even more challenging for Malaysia to re-enter the calendar.
Future Possibilities
Despite ruling out immediate government involvement, Yeoh emphasized that Malaysia is not entirely closing the door on Formula One. She stated that the government would remain open to discussions if corporate sponsors or private entities were willing to shoulder the financial burden.
“The Formula One is a very prestigious sporting event that is followed by fans around the world,” Yeoh said. “So if we could afford it, it’s a good-to-have event in Malaysia.”
Outlook
While Formula One will not be returning to Malaysia in the near future, the nation’s motorsport scene remains vibrant through MotoGP and other regional racing events. The potential for an F1 comeback rests largely on private sector interest and sponsorship, rather than direct government funding.
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IMAGE: AFP
