Malaysia would need to spend at least RM300 million yearly if it wants to secure a permanent slot on the Formula 1 calendar, Sepang International Circuit CEO Azhan Shafriman Hanif has said, reported Bernama.
This estimated figure covers Formula 1 hosting rights fees, which are currently estimated at between US$70 million to US$80 million (RM289 million to RM340 million), as well as costs for local preparations required to meet the specifications of the event.
“My estimate is no less than RM300 million. That is the cost. But we also need to look at the overall returns. Based on the data I have seen, most host countries generate returns of at least three times the amount they spend. In other words, if we spend RM300 million, the potential return to the country could reach RM1 billion,” Azhan said.
There are two main requirements which need to be met if Malaysia is to regain a permanent slot on the Formula 1 calendar, he said. This includes the ability to pay the hosting rights fees, and the availability of a slot on the championship calendar.
“The government’s current focus is not on spending money on international events but on helping the people with economic challenges and the cost of living. Perhaps in the future, based on the data we obtain from hosting this event, it could serve as a starting point for our decision,” he said.
“The other factor is the availability of a slot on the F1 calendar itself. If there is no slot, it will not happen. So the two main criteria are having the funds to pay the rights fees and having an available slot on the calendar,” he continued.
The hosting of the round in Malaysia – officially named the Formula 1 Gulf Air Bahrain Grand Prix in Malaysia – is to take place at the Sepang International Circuit from October 2 to 4, 2026, and it would be a one-off event, with the current priority being to ensure the successful organisation of the event, Azhan said.
Earlier this week, former Sepang International Circuit CEO Datuk Razlan Razali said that while the return of Formula 1 to Malaysia will bring economic spillover, a permanent return to the sport’s calendar is unlikely.
As for the expenditure by Malaysia for the upcoming event, the nation would only need to spend an estimated RM16 million to prepare the venue for the return of the premier open-wheel series, prime minister Datuk Seri Anwar Ibrahim said.
money give me because money test for me can buy more food for pet dog cat?
See how other countries do it la… How they recoup the costs, get more sponsors, G grants and so in…
If PMX (or the new PM after GE16) wants to spend 300 juta,then dont keep grumbling fuel subsidies ‘mencecah’ 5 Billion Rm.
Now mad dog Trump is going to fight a ‘forever war’ with no end in sight.The fastest way to end the war is the Hiroshima option.
Other than this mad insane option,Brent crude will linger above USD 100 for many moons to come.
So,either be prudent or keep spending..the money pit is getting deeper and deeper.
better spend that tax money on shooting down criminals such as scammers, pedophiles and Mat rempits
what is SIC CEO salary?
CEO said “Based on the data I have seen, most host countries generate returns of at least three times the amount they spend.” So has Malaysia achieved that returns from the past hosting? Obviously no, right? So why CEO still dreaming of hosting? By the way, how much is the CEO salary? Hope not a big figure as the track is also barely used, else he is getting gaji buta saja!
Because we last hosted F1 just when Liberty Media bought F1 rights. Before that, F1 literally on a decline in viewership due to lack of exposure and attractiveness to youngsters. Previous F1 boss even said he prefer old rich men.
Now, Liberty Media gears toward media marketing, giving more exposures to F1’s technical side and also teams’ season story via Drive to Survive. Clearly you don’t follow F1 since this is what F1 fans been discussing FOR A DECADE.
SIC isn’t a government entity dude.
300million is less than the money eaten by corrupted officers
300 million is more than enough to fund a second round of Sumud global flotilla to help Zaga
even GISBH and Tabung Haji corruption case is worth more than annual F1 maintenance hahahahaha
All those numbers are just numbers, The money out and the money in… even if the countries eventually gain the so call billions like this fellow said, how many of those so call billions go to the people?! and the MODONI gov will keep on posting the gov debt from time to time…everything at the face of it seem good,profitable… but after the people above and people who looks for advantages, then there’s very little left, end up we need to spend more! Let say if we really gain billions back for the first year, it already cover 3 years of the hosting right?! so why we still need to bother the other 300m for the subsequence year?! meaning, every year after tat will be a money comin in only…. base on simple logic… but the people who have special needs will always come with special logic
I am on the Malaysian official’s side, F1’s owners or thugs in suits called Liberty media extort the race promoter with ridiculous “hosting fees” or as I’d say ‘hostage fees’
The RM300m Bahrain has paid ia not refundable. So make it at SIC is the least they can do to minimise losses. The huge winner is Malaysians. Forex, economic activities trickle down even to makcik pisang goreng stalls. Not to forget those 5-8% SST.
No. The country has other more pressing issues that need fixing, funds, and common sense thinking.
If potential return is 3x the amount spent. What’s the problem? It has every reason to host the permanent F1 race