No Plans To Host F1 Again Due To High Costs - Hannah

KUALA LUMPUR, Aug 21 (Bernama) -- 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 said several factors need to be studied in greater detail should the government reconsider hosting the F1 championship.

She said 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.

“Besides the hosting rights fees, the cost of circuit preparation and event organisation also needs to be considered. The Sepang International Circuit (SIC) still holds the FIA Grade 1 circuit homologation status and requires RM10 million annually to ensure the safety of the track and supporting facilities meet the required standards,” she said during Minister's Question Time.

Hannah was responding to a question from Oscar Ling Chai Yew (PH-Sibu), who wanted to know whether Malaysia could host F1 again and how the Sepang International Circuit (SIC) could maximise its use to bring contributions and benefits to the country.

The Segambut MP said that with the RM300 million annual hosting rights fee, the ministry could instead implement development programmes for 20 types of sports involving 363 podium athletes and 9,834 talent development athletes, at a total cost of RM124.1 million per year.

“With the same RM300 million, KBS (Youth and Sports Ministry) could finance the implementation of these programmes several times over, equivalent to two or even four full years of sports development programmes,” she said.

In addition, she said the RM10 million cost for circuit preparation could cover the annual Road to Gold (RTG) programme. With the hosting rights fee, the government could also allocate RM30 million a year for 10 years under the Sports Matching Grant (GPS).

“This GPS initiative is very important as it stimulates the growth of the sports economy through private sector participation in organising national and international sporting events,” she said.

Hannah also said the packed F1 race calendar means Malaysia would have to compete with other countries to secure 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 said.

However, she said Malaysia has not completely closed the door on F1 returning to the country if there are corporations interested in covering the cost of the hosting rights fees.

Therefore, Hannah said SIC is focusing all efforts on organising the PETRONAS Grand Prix of Malaysia or MotoGP, which can deliver greater economic value and benefits at a much lower hosting rights fee, only a quarter of the cost compared to F1.

She said the annual hosting of MotoGP attracted nearly 185,000 spectators, generated an additional economic impact of RM329 million in 2024 and created 4,463 job opportunities for Malaysians.

SIC has become a preferred destination for hosting high-profile international events such as Super GT, Michelin 24H Series Middle East, GT World Challenge Asia, Asia Le Mans, as well as local races such as the Malaysia Touring Car Championship, Malaysian Cub Prix, and Malaysian Superbike Championship, which continue to boost the country’s motorsport industry,” she said.

Malaysia joined the F1 calendar in 1999 and last hosted an F1 Grand Prix in 2017.

-- BERNAMA