KUALA LUMPUR, Malaysia, Aug 21, 2025 – Malaysia has no plans to host Formula 1 (F1) races again due to the high costs of organizing the event and a packed global racing calendar, according to the Minister of Youth and Sports, Hannah Yeoh. Responding to a parliamentary question from Sibu MP Oscar Ling Chai Yew in Parliament today,Hannah outlined the challenges of bringing F1 back to the Sepang International Circuit (SIC) and highlighted efforts to optimize the circuit’s use for other events and community activities.
The minister revealed that hosting F1 would require an annual investment of approximately RM300 million to cover licensing fees paid to Liberty Media, F1’s commercial rights holder. A multi-year contract spanning three to five years could cost up to RM1.5 billion. Additionally, maintaining SIC’s Grade 1 FIA homologation rating incurs annual costs of RM10 million to ensure safety and facility standards.
“Malaysia hosted F1 from 1999 to 2017, becoming the first Southeast Asian nation to stage this prestigious race,” the Minister noted. However, rising licensing fees and declining spectator turnout led to the event’s discontinuation on September 1, 2017. Hannah emphasized that the RM300 million annual cost could fund critical sports development programs, such as the RM124.1 million needed yearly for 20 sports programs supporting 363 podium athletes and 9,834 talent development athletes. Alternatively, the RM10 million for circuit upgrades could sustain the Road to Gold program or support the RM30 million annual Sports Matching Grant (GPS) for a decade, boosting the sports economy through private sector involvement.
The global F1 calendar, which kicks off with pre-season testing in Bahrain in February 2025 and includes 24 races worldwide, also poses a challenge. Malaysia would need to compete with other nations, including Singapore (an F1 host since 2008) and Thailand (set to join in 2028), for a slot. This regional competition could further reduce the economic returns of hosting F1 in Malaysia.
While F1 remains a “good to have” but non-essential asset, Hannah said that her ministry left the door open for corporate sponsors to cover licensing fees, directing interested parties to contact SIC for discussions. Instead, SIC is focusing on hosting the PETRONAS Grand Prix of Malaysia (MotoGP), which offers higher economic benefits at a quarter of F1’s licensing costs. In 2024, MotoGP drew nearly 185,000 spectators, generated RM329 million in economic impact, and created 4,463 jobs.
To maximize SIC’s usage, the circuit has launched the SIC Timeout program, offering free public access for activities like jogging, cycling, skateboarding, and rollerblading. This initiative ensures taxpayers benefit from the world-class facility. SIC also hosts high-profile international events such as SuperGT, Michelin 24H SERIES Middle East, GT World Challenge Asia, and Asia LeMans, alongside local races like the Malaysia Touring Car Championship, Malaysian Cub Prix, and Malaysia Superbike Championship, bolstering the nation’s motorsport industry.
Hannah added that open days with ambassadors have been held to promote further activities at SIC, reinforcing its role as a hub for sports and community engagement.