Malaysia is looking at bringing Formula 1 back to Sepang on a regular basis, either every year or every few years alongside another country. The move comes after the circuit's one-off role as host of this year's Bahrain Grand Prix generated an estimated $233 million.
According to reports in Malaysia, the country is considering hosting F1 races once every few years, potentially in collaboration with other countries. On Thursday, Youth and Sports Minister Dr Mohammed Taufiq Johari told the Dewan Rakyat that preliminary discussions had been held between Prime Minister Datuk Seri Anwar Ibrahim and F1 management on the possibility of bringing the sport back to Malaysia.
Sepang had hosted a leg of the Formula One championship annually between 1999 and 2017 before being dropped from the calendar amid declining ticket sales and concerns over rising hosting costs, Reuters notes. The circuit came back into the picture when it stepped in to stage the relocated Bahrain Grand Prix from 2 to 4 October.
Sepang crowds far outstrip the last Malaysian GP
In a written parliamentary reply earlier in the week, Taufiq said the event attracted about 261,000 fans over the race weekend, including an estimated 103,000 on race day. He gave the ministry's figure of nearly RM950 million as coming from Formula One Management.
He added that based on latest ticket sales data, more than 97,000 tickets were sold while over 50,000 foreign tourists and around 5,000 foreign workers attended the race. Speaking in parliament on Thursday, he put that next to the circuit's last outing on the calendar:
If we look at 2017, ticket sales were only about 30,000, compared with nearly 100,000 tickets this year.
Cabinet to decide after November report
The ministry is leading a committee that includes all ministries and the Chief Secretary to the Government. It is examining the cost, likely return on investment and Sepang International Circuit's readiness before recommending whether the race should become a regular event again. Its report is expected to be completed by the end of November before being presented to the Cabinet for a decision.
The minister was open about the cost. Reuters quoted him as saying:
Staging F1 is not cheap. It involves quite substantial costs, and there are several important aspects that we need to assess.
He said the government would also need to consider if "we would obtain the same returns (every year), and whether we are ready in terms of the various infrastructure requirements". He stressed that any decision to bring back F1 must not affect allocations for athlete development and other sports.
Who pays the hosting fee is still open
This year's deal did not follow the usual model. The ministry added that the hosting arrangement differed from previous editions, as Bahrain covered the hosting rights fees through its collaboration with SIC. Kursiv reports that Malaysia spent between RM10mn and RM16mn on preparations, while Sepang International Circuit officials previously estimated annual hosting costs at approximately RM300mn ($73mn).
A shared slot would not be new for F1. Under an agreement already in place, Spa is scheduled to host in 2027, 2029 and 2031, with Barcelona taking 2028, 2030 and 2032.
Competition for space on the calendar is getting tougher. Malaysia's announcement comes days after the government of Rwanda and Formula 1 announced a 10-year deal for a new African Grand Prix in capital Kigali, which will first be held in 2030 at the earliest.