Malaysia Needs At Least RM300 Million A Year To Bring F1 Back Permanently

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Malaysia would need to spend at least RM300 million annually to secure a permanent place on the Formula 1 calendar, according to Sepang International Circuit (SIC) chief executive officer Azhan Shafriman Hanif

Speaking at a press conference today, 29 July, Azhan said the estimated figure covers Formula 1 hosting rights fees — currently between USD70 million and USD80 million (around RM289 million to RM340 million) — as well as local operational and preparation costs needed to stage the race.

However, he said countries that host Formula 1 races typically generate returns of at least three times their investment.

"My estimate is no less than RM300 million. That is the cost. But we also need to look at the overall returns. Based on the data I have seen, most host countries generate returns of at least three times the amount they spend.

"In other words, if we spend RM300 million, the potential return to the country could reach RM1 billion," he said, as quoted by Bernama.

Azhan said Malaysia would need to meet two key conditions before it can secure a permanent return to Formula 1: the ability to pay the hosting rights fees and an available slot on the championship calendar

However, he acknowledged that the government's current priority is helping people cope with economic challenges and the rising cost of living, rather than spending on major international sporting events.

For now, Azhan said SIC is focused on successfully hosting this year's Formula 1 Gulf Air Bahrain Grand Prix in Malaysia

"Perhaps in the future, based on the data we obtain from hosting this event, it could serve as a starting point for our decision.

"For now, our focus is to deliver this event successfully. We are working together with Bahrain and Formula 1 on this one-off event. We will see if we can gain the confidence of the stakeholders, the government, Formula 1, and the Bahrain government. Perhaps then we can consider it again," he said.

Malaysia previously hosted the Malaysian Grand Prix at Sepang from 1999 to 2017 before the race was dropped from the Formula 1 calendar.