Malaysia Rules Out F1 Return Due to High Costs, Thailand Moves Forward

Thailand's Bid Approved, Malaysia Opts Out

Malaysia won't host F1 in the near future due to high costs, while Thailand's cabinet approves a $1.2 billion bid for a street race in Bangkok starting 2028.

Malaysia has reportedly ruled out a near-future return to the Formula 1 calendar, citing high costs and a packed racing schedule. The Sepang International Circuit, which hosted its first F1 race in 1999, hasn't seen a Grand Prix since 2017. According to Hannah Yeoh, Malaysia's Youth and Sports Minister, hosting F1 is “very expensive,” and the country can't afford it without significant investment.

Key Challenges for a Potential Return:

Financial Constraints: The circuit needs substantial funding for upgrades, with RM20 million sought from the government to make necessary improvements.

Competing Priorities: The focus has shifted to more pressing issues, such as urgent track repairs and maintenance.

Calendar Congestion: The F1 schedule is already packed, making it challenging for new events to secure a spot.

Despite rumors of a potential return in 2026, Petronas, the Malaysian state-owned oil and gas giant, has denied any plans to revive the Malaysian Grand Prix. Azhan Shafriman Hanif, the Sepang International Circuit's CEO, previously stated that a return to F1 wouldn't be feasible in the near future due to economic constraints.

 

🤑Formula 1 asks Sepang for 70 million euros to bring back the Malaysian GP pic.twitter.com/gMIKZIWcE8

— Holiness (@F1BigData) August 19, 2025

Malaysia's absence from the F1 calendar since 2018 stems from the high costs associated with hosting the event. Despite this, the Sepang International Circuit continues to thrive, hosting MotoGP motorbike racing annually. The circuit's maintenance and hosting costs are substantial, with the government facing a bill of approximately RM300 million (£52.8m) annually for hosting rights.

Breakdown of Estimated Costs:

• Hosting Rights: RM300 million per year, paid to Liberty Media, the commercial rights holder for the championship
• Circuit Maintenance: RM10 million annually to maintain the required FIA Grade 1 license standards

Sports Minister Hannah Yeoh highlighted that the funds allocated for F1 could be redirected towards youth and sports development initiatives. For instance, the RM300 million annual fee could support various programs, such as:

National Road to Gold (RTG) Program: RM10 million could fully fund this program for a year, focusing on athlete development and support

Sports Matching Grants (GPS): RM30 million could fund this initiative for a decade, promoting private-sector involvement in national and international sporting events

Yeoh emphasized that while Malaysia isn't entirely ruling out a potential F1 return, it would require corporate sponsorship or private funding to cover hosting costs. The government is prioritizing other sports development initiatives over hosting F1 due to the high expenses involved.

“Malaysia must also bind itself to a contract of between three to five years with Liberty Media (which holds F1's commercial rights), amounting to a commitment of about 1.5 billion ringgit during this period,” she told parliament on Thursday.

“The current race calendar is very tight and if Malaysia is interested in hosting again, we will have to compete with other countries for a place on the calendar,” she added.

Singapore currently hosts a night Formula 1 race, while Thailand is vying to join the F1 calendar with a proposed street race in Bangkok. The Thai cabinet has given the green light for a $1.2 billion bid to host the event from 2028 to 2032, with the potential to boost tourism and generate significant economic benefits. According to government officials, the bid could bring in $600 million in economic benefits and create new opportunities for the country.

Thailand's F1 Bid Details:

• Proposed Date: 2028-2032, pending approval from the FIA and Formula One Management
• Estimated Cost: $1.2 billion (approximately 40 billion baht)
• Potential Benefits: $600 million in economic benefits, promoting tourism and creating new jobs
• Circuit Location: Potentially near Chatuchak market in Bangkok's north, a popular tourist destination

In contrast, Malaysia hosted its last F1 Grand Prix in 2017 at the Sepang International Circuit but ruled out a near-future return due to high costs. Malaysia's Youth and Sports Minister, Hannah Yeoh, stated that hosting F1 again would require significant investment, approximately 300 million ringgit annually, and the government is not willing to bear the costs alone. However, Yeoh didn't entirely shut the door on having F1 races again if corporate entities were willing to shoulder the costs.

“We are open to this and can cooperate,” she added.

“Formula 1 is a very prestigious sporting event that is followed by many fans around the world.

“So if we could afford it, it's a good-to-have event in Malaysia.”