Malaysia will not have to pay a Formula 1 hosting fee to the Fédération Internationale de l’Automobile (FIA) when it resumes staging the race, Prime Minister Datuk Seri Anwar Ibrahim announced.
Anwar said he was informed of the arrangement by Bahrain’s King Hamad bin Isa Al Khalifa during a phone conversation on Sunday. According to him, the hosting fee, which previously amounted to hundreds of millions of ringgit and was paid to Formula One’s commercial rights holder, has been waived.
“The initial payment that previously amounted to hundreds of millions has been abolished, so we no longer need to pay it. Our only significant expense will be upgrading the Sepang International Circuit, which I estimate will cost around RM16 million,” he said while speaking at the Semarak Kenegaraan programme at Dewan Garison Gemas, Kem Syed Sirajuddin.
He noted that many countries spend hundreds of millions, and in some cases up to RM1 billion, to host a Formula 1 race, making Malaysia’s arrangement significantly more cost-effective.
Anwar said the return of Formula 1 would once again place Malaysia in the global spotlight, attracting world-class drivers, technical teams and thousands of engineers from around the world.
He added that the exemption reflected Formula 1 management’s confidence in Malaysia’s security, stability and administrative capabilities.
“I assured them that our management will be carried out efficiently. The key is that Malaysia is a peaceful country, supported by strong security forces and an administration regarded as competent,” he said.
Malaysia last hosted a Formula 1 Grand Prix around a decade ago, with the event previously costing the country hundreds of millions of ringgit to organise.
