Sepang International Circuit Thrives Beyond Formula One: Focus on High-Frequency Track Utilisation

Sepang: Sepang International Circuit's (SIC) transition from hosting Formula One (F1) events to a sustainable business model has been driven by high-frequency track usage and ongoing commercial activities. According to BERNAMA News Agency, the circuit, once known for its F1 races, has found financial stability through daily track utilisation, which includes track days, corporate bookings, and manufacturer-led activities. Former SIC CEO Datuk Razlan Razali emphasized that recurring usage is the backbone of SIC's operations, with track days being the primary revenue source, while major events like F1 and MotoGP were significant but episodic contributors. Razlan highlighted that track usage was already robust before the COVID-19 pandemic, with nearly 90% of available days booked by private corporations, car and motorcycle clubs, manufacturers, and other event organizers. This model ensures consistent cash flow and year-round activity, engaging a broader motorsport value chain that includes suppliers and servi ce providers. In the wake of F1's departure in 2017, public debates often revolved around issues of accessibility and pricing. Razlan pointed out that such criticisms overlook the fixed costs and regulatory standards mandated by the Fédération Internationale de l'Automobile (FIA) and Fédération Internationale de Motocyclisme (FIM). These standards dictate track quality, safety systems, and operational readiness, limiting how much pricing and access can be adjusted without compromising financial viability. The Ministry of Finance owns SIC, with its sporting direction and strategy managed by the Ministry of Youth and Sports, ensuring that commercial sustainability remains central to its operations. The circuit's post-pandemic recovery saw track utilisation surpass 80% by 2025, driven by demand from both domestic and regional participants, as noted by current SIC CEO Azhan Shafriman Hanif. Azhan Shafriman, who took over from Razlan in 2020, revealed that professional track day organisers and original equipmen t manufacturers are significant users of the circuit. SIC has repositioned itself as a high-frequency motorsport facility, with a 10-year master plan extending to 2035 that aims to unlock value from its undeveloped land through hospitality, commercial, and motorsport-related developments. Professional driver Tengku Djan Ley Tengku Mahaleel observed that track days have become more structured, with safety briefings and driver training sessions enhancing participant safety and discipline. Viper Niza Racing team principal Douglas Khoo emphasized the importance of track days for professional teams, particularly for testing and preparation. Khoo acknowledged that the allocation of track days reflects SIC's commercial realities, with corporate bookings and manufacturer activities competing for limited calendar space. He noted that while demand for additional track days exists, the current balance is necessary to maintain financial sustainability alongside sporting access. As Malaysia's motorsport landscape evolv es, SIC's future hinges on disciplined utilisation rather than headline events, reflecting the commercial necessities of sustaining a world-class circuit in the post-F1 era.