Malaysia's dream of F1 comeback: Government blocks funding!

Malaysia's dream of F1 comeback: Government blocks funding!

Malaysia's return to Formula 1 could prove challenging as the Malaysian government has rejected any financial support for the event. The last Grand Prix in Malaysia took place in 2017, when countries like Malaysia withdrew from Formula 1 due to heavy financial burdens. Sepang International Circuit management sees this withdrawal as a “mistake” and is actively seeking a return. According to Azhan Shafriman Hanif, the circuit's managing director, there is great hope for an early return, but this cannot be achieved in the short term.

The financial burden is not insignificant. Liberty Media, the current Formula 1 rights holder, is demanding an entry fee of around $70 million. This sum places high demands on potential organizers and could further complicate the situation. While the Mariaysia government is focused on public needs, private funding remains the only realistic option for an F1 return. Azhan Shafriman emphasizes the need to find the “right partner” for financing to realize the project.

Current situation and possibilities

Sepang International Circuit management is optimistic that a return of Formula 1 without government funding is possible if the suitable sponsor can be found. Competition for a place on the F1 calendar is fierce, with countries such as Thailand, Rwanda and Argentina also expressing interest in joining the calendar. The current F1 calendar has already reached its maximum capacity of 24 races, further limiting the chances of a quick return for Malaysia.

However, there are positive developments that give hope. The increasing number of viewers worldwide in recent years and the increased popularity of Formula 1 since its takeover by Liberty Media could provide an incentive to overcome the financial challenge. The Sepang team has the necessary infrastructure to host F1 races, but needs some adjustments to meet Formula 1's high standards.

Future outlook

Despite the current challenges, those responsible in Malaysia believe that there is a long-term possibility of return. Azhan Shafriman Hanif expresses the belief that the return of Formula 1 in Malaysia is only a matter of time, even if the implementation seems unrealistic at the moment. The current contract for MotoGP at Sepang ends at the end of 2026, with the aim of concluding a multi-year agreement by early next year.

Overall, Malaysia is likely to remain a serious candidate for a return to the Formula 1 calendar, provided a suitable financing partner can be found. The developments in the coming months will be crucial to realize the dream of another Malaysia Grand Prix.