Kuala lumpur: Malaysia has no plans to host the Formula 1 (F1) championship again due to the high cost of hosting rights fees and facility preparations, as well as the packed race calendar, the Dewan Rakyat was told today. Youth and Sports Minister Hannah Yeoh highlighted several factors needing detailed study should the government reconsider hosting the F1 championship.
According to BERNAMA News Agency, Hannah Yeoh stated that staging the F1 championship in Malaysia annually would require the government to invest about RM300 million a year to pay hosting rights fees to Liberty Media, the commercial rights holder of F1. "In general, Malaysia would need to sign a hosting contract of three to five years with Liberty Media, which would involve a commitment of around RM1.5 billion in F1 hosting rights fees for that period," she explained.
Besides the hosting rights fees, the cost of circuit preparation and event organisation is also significant. The Sepang International Circuit (SIC) holds the FIA Grade 1 circuit homologation status and requires RM10 million annually to ensure safety standards. Hannah was responding to a question from Oscar Ling Chai Yew (PH-Sibu) about Malaysia's potential to host F1 again and how SIC could maximise its use for national benefit.
The Segambut MP emphasized that with the RM300 million annual hosting rights fee, the ministry could implement development programmes for various sports, benefiting numerous athletes, at a total cost of RM124.1 million per year. "With the same RM300 million, KBS (Youth and Sports Ministry) could finance these programmes several times over, equivalent to two or even four full years of sports development programmes," she said.
In addition, the RM10 million cost for circuit preparation could support the annual Road to Gold (RTG) programme. The hosting rights fee could also fund RM30 million annually for a decade under the Sports Matching Grant (GPS), which stimulates the sports economy through private sector involvement in sporting events.
Hannah also noted that the crowded F1 race calendar means Malaysia would compete with other countries for a slot. "For example, Singapore has been hosting F1 since 2008, and Thailand will also become one of the F1 destinations starting in 2028. The hosting by other countries in the Southeast Asian region could affect Malaysia's returns from staging the race," she added.
However, she mentioned that the door is not completely closed on F1's return if corporations show interest in covering the hosting rights fees. Therefore, SIC is focusing on organising the PETRONAS Grand Prix of Malaysia or MotoGP, which offers greater economic value at a much lower hosting cost.
The annual MotoGP event attracted nearly 185,000 spectators and generated an economic impact of RM329 million in 2024, creating 4,463 job opportunities. SIC continues to be a favored destination for high-profile international events and local races, which boost the country's motorsport industry. Malaysia joined the F1 calendar in 1999 and last hosted an F1 Grand Prix in 2017.