Malaysia is considering bringing back Formula 1 (F1), potentially through races held every few years in partnership with other countries, as the government weighs the costs against the economic benefits.
Youth and Sports Minister Dr Mohammed Taufiq Johari said discussions were still at an early stage following a meeting between Prime Minister Datuk Seri Anwar Ibrahim, F1’s chief executive officer and its management.
He said hosting F1 required substantial investment, making it necessary for the government to assess whether the returns would justify the expense, particularly if races were held annually.
“There have been discussions in that direction, and we need to recognise that hosting F1 is not cheap. It involves considerable costs,” he said in the Dewan Rakyat on Thursday.
Mohammed Taufiq was responding to a supplementary question from Syahredzan Johan (PH-Bangi) on the possibility of Malaysia hosting F1 again, including the factors being considered and the annual costs involved.
He said the government was also exploring the possibility of holding the race once every few years in collaboration with another country.
The Youth and Sports Ministry has been tasked with joining an F1 Evaluation Committee comprising representatives from all ministries and the Chief Secretary to the Government. The committee will assess hosting costs, economic benefits and the potential return on investment (ROI) before any decision is made.
Mohammed Taufiq stressed that the assessment must extend beyond the Youth and Sports Ministry and the Sepang International Circuit (SIC), as the economic impact of hosting F1 could benefit multiple sectors and the country as a whole.
He said an evaluation report was expected to be presented to the Cabinet by November, after which the government would decide whether to bring the race back to Malaysia.
The minister added that projected economic returns from a recent F1 event held from Oct 2 to 4 were estimated at RM950 million, although the figures would need to be reassessed when considering future events.
He also highlighted the difference in ticket sales, noting that about 30,000 tickets were sold in 2017, compared with as many as 100,000 for the recent event.
The government would also need to determine whether similar economic returns could be sustained if F1 were held every year, while ensuring the country had adequate infrastructure to support the event.
Mohammed Taufiq said any decision must also take into account national sports development, ensuring that funding for athletes and other sporting disciplines would not be affected by the costs of hosting F1.
