Cabinet to decide on F1's return to Sepang after November report

PARLIAMENT | The cabinet will decide whether to bring Formula 1 back to the Sepang International Circuit (SIC) after reviewing a report on the proposal next month.

Youth and Sports Minister Taufiq Johari said a multi-ministerial committee is assessing the costs and potential economic returns of hosting future F1 races in Malaysia. The committee includes representatives from all ministries and the chief secretary to the government.

He told the Dewan Rakyat today that the exercise aims to...

PARLIAMENT | The cabinet will decide whether to bring Formula 1 back to the Sepang International Circuit (SIC) after reviewing a report on the proposal next month.

Youth and Sports Minister Taufiq Johari said a multi-ministerial committee is assessing the costs and potential economic returns of hosting future F1 races in Malaysia. The committee includes representatives from all ministries and the chief secretary to the government.

Taufiq (below) told the Dewan Rakyat today that the exercise aims to ensure responsibility for hosting any future F1 race does not fall solely on the Youth and Sports Ministry and SIC, given the potential economic benefits for the wider economy.

“Instead, we want this hosting to be cross-ministerial as the economic benefits are felt not only by the rakyat, but across all ministries and for the good of the country - that is why this evaluation on readiness and other aspects is currently being carried out.

“By November, we will produce a report to be brought to the cabinet, and ultimately, the matter will be decided by the cabinet on whether we will bring F1 back to our country or not,” he said in response to a supplementary question from Syahredzan Johan (Harapan-Bangi).

Taufiq previously said the Gulf Air Bahrain Grand Prix, held at SIC from Oct 2 to 4, generated an estimated RM950 million in economic impact for Malaysia.

READ MORE: M'sia confirmed as host of Gulf Air Bahrain GP - Formula One

However, SIC CEO Azhan Shafriman Hanif said Malaysia would need to spend at least RM300 million annually to secure a permanent place on the F1 world championship calendar.

The estimate includes hosting rights fees of between US$70 million and US$80 million (RM289 million to RM340 million), as well as local preparations to meet the event's requirements.

Azhan said data he had seen showed that most host countries generated returns of at least three times their spending, potentially translating into RM1 billion in returns from an investment of RM300 million.

Future F1 hosting

The Bahrain government covered most of the costs of staging the race at SIC, including the hosting rights fees. Malaysia contributed about RM40 million towards other expenses, including track and local organising costs.

Malaysia first hosted an F1 race in 1999, but withdrew in 2017 amid high hosting costs and declining returns.

Taufiq also said ticket sales for the recent Bahrain Grand Prix at SIC reached about 100,000, compared with around 30,000 in 2017. However, he said the government must assess whether future races would attract similar interest.

He added that F1 management had proposed that Malaysia host a Grand Prix once every few years, in collaboration with other countries.

“Whatever it is, we want to ensure that hosting F1 does not result in, or cause any negative implications towards the development of other national sports.

“We want to ensure that funds for athlete development and national sports development continue, but for F1, we need to evaluate the feasibility and effectiveness of hosting F1 for Malaysia,” he said.

Developing local drivers

Meanwhile, Wan Hassan Ramli (PN-Dungun) asked whether the ministry could leverage Petronas’ longstanding partnership with the Mercedes-AMG Petronas F1 team to develop a pathway for young Malaysian drivers.

Wan Hassan proposed structured opportunities for training, sponsorship, and international exposure, saying Malaysia should aim to produce drivers capable of competing in F1 rather than remain known primarily as a race host and sponsor.

In response, Taufiq said the ministry was exploring ways to involve local youths in the sports industry.

He cited a RM5.6 million allocation for the National Youth and Sports Department in 2025, as well as grassroots programmes such as the Rakan Litar initiative, drift and rally classes, a karting academy, and minibike and motocross racing.