Why it matters:
Malaysia has definitively ruled out a return to the Formula 1 calendar due to prohibitive financial costs. This highlights the significant economic barriers for potential host nations.
The big picture:
Sports Minister Hannah Yeoh stated annual hosting rights alone would cost US$71 million (300 million Malaysian ringgit), with an additional US$2.4 million (10 million Malaysian ringgit) for circuit maintenance. A three-to-five-year contract with Liberty Media would commit Malaysia to an estimated US$354.8 million (1.5 billion Malaysian ringgit) in total.
The details:
- Malaysia last hosted F1 at Sepang International Circuit in 2017, having been on the calendar since 1999. It was dropped in 2018 due to escalating costs and declining spectator numbers.
- The current F1 calendar is tight, with Asian races only in China, Japan, and Singapore.
- Neighboring Thailand is pursuing a US$1.2 billion plan for a Bangkok street race from 2028.
What's next:
While an immediate return is off the table, Malaysia's government is open to future F1 events if substantial third-party support, like from Petronas, can be secured. This indicates corporate backing could change the situation.