According to the CEO of the Sepang International Circuit, the single biggest obstacle preventing the country from hosting Formula 1 again is the enormous financial cost required to bring the series back.
Formula 1 without Malaysia
It has now been almost a full decade since Malaysia last hosted a Formula 1 Grand Prix. The final race was held in 2017, even though the contract with the FIA was originally due to run until the end of 2018. Since its debut in 1999, the Malaysian Grand Prix was always staged at the Sepang International Circuit, a track designed by the well-known German architect Hermann Tilke. The venue remains an active part of the MotoGP calendar, but Formula 1 disappeared after ticket sales dropped dramatically in 2017. As a result, the circuit management and the FIA reached a mutual decision not to continue hosting the event.
Mistakes of the past
Reflecting on that decision, the Chief Executive Officer of the Sepang International Circuit, Azhan Shafriman, spoke to the New Strait Times about the regret he still feels over the exit of Formula 1 from Malaysia. He also admitted that mistakes were made at the time and emphasized that his main priority is to avoid repeating them. “We do not want to repeat the mistakes of the past,” he said. “We let Formula 1 go, and now it is very difficult to get it back. I hope we do not make the same mistake with MotoGP.”
A difficult mission
The reason why bringing Formula 1 back to Malaysia is so complicated, Shafriman stressed, is entirely linked to cost. “There is a waiting list to return to Formula 1 and, of course, the costs are very high,” he explained. “Liberty Media asked us for 70 million US dollars as the race hosting fee. That is the cost for every single edition of the Malaysian Grand Prix, and it does not even include our own organizational expenses, which are between 10 and 20 million Malaysian ringgit for each event. Altogether, it would cost us more than 71 million dollars per year to bring the race back. Many countries are waiting in line, so it will not be easy, but if we are truly serious about this, perhaps we can begin negotiations.”
A national commitment
For Shafriman, the possibility of Formula 1 returning to Malaysia should not be seen as a responsibility only for Sepang, but rather as a project that requires the commitment of the entire country, starting with the government. “It is not just Sepang that wants Formula 1,” he concluded. “Many other stakeholders, from the government to the corporate sector, also want to see it return. We have to look at how Singapore hosts its race, just as an example. Everyone contributes to making it a success, from government ministries to private businesses to hotels. Everyone is involved. It must be that way if we want Formula 1 to come back here. It will take time. Even with MotoGP, it took time to increase the financial return. The important thing is that all stakeholders work together. MotoGP and Formula 1 have always been seen as Sepang events, but in reality, they are national events. We are on the front line in terms of management, branding, and operations, but essentially these are Malaysian events.”
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