For all its glamour, hosting a Formula One (F1) event is not necessarily profitable for an industry pulling in so much cash. Just ask Malaysia.
In 1999, Malaysia’s Sepang International Circuit (SIC) was officially inaugurated with much fanfare. The circuit was the brainchild of motorsport enthusiast and Malaysia’s fourth prime minister at that time, Mahathir Mohamad. It was dubbed the “crown jewel of Malaysian motorsports” and touted as the world’s best F1 facility, which cost RM286 million to build.
Throughout the years, SIC saw various memorable events, such as Kimi Raikkonen’s first claim of F1 victory and Lewis Hamilton’s infamous meltdown following an engine failure in 2016. However, after almost two decades, Malaysia hosted its last F1 world championship in 2017.
A year prior, Nazri Abdul Aziz, the country’s then minister of tourism and culture, said the F1 races had become too expensive to host and were no longer attractive, adding that the number of spectators for the races had gone down globally, even in Singapore. He added that Malaysia spent about RM300 million a year to organise the F1 race at Sepang, but returns have not been up to the par.
Despite its best efforts to promote its events, SIC struggled to attract spectators to the races, especially among locals. One of the reasons cited is the high ticket pricing — in 2017, tickets for the F1 GP grandstand ranged from RM169.68 to RM613.68 per person.
The circuit also faced challenges in attracting international spectators despite its proximity to the Kuala Lumpur International Airport. Many have pointed out the unstrategic location. For one, even in ideal traffic conditions, Sepang is about an hour’s drive from the Kuala Lumpur city centre.
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Even in its heyday, the site barely had any nearby attractions and amenities. The area surrounding the circuit was largely undeveloped, consisting mainly of green patches and residential neighbourhoods. As such, there were not a lot of luxury hotels nearby; the five-star Movenpick, for instance, only opened in 2018.
The competition for spectators from Singapore’s Marina Bay Street Circuit in 2008 added to the SIC’s woes. Compared to SIC, the Singapore circuit is right at the heart of the city, making it more exciting to tourists and local spectators. It also makes for a more commercially attractive location for businesses and corporations riding on the race with side events and celebrations.
Although SIC is no longer used to host F1 races, it is still used for other motorsport events such as MotoGP, Malaysian Championship Series, Sepang 1000KM Endurance Race and Malaysia Superbike Championship.
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It also holds non-race events such as concerts and international music festivals, including the annual Good Vibes Festival.
There have been calls to revive F1 races at the SIC. Malaysia’s youth and sports minister Hannah Yeoh, however, deemed this as “impossible” at a press conference last year, reiterating the high costs the Grand Prix would incur. The ministry is instead focusing on giving SIC RM20 million ($6 million) in funds to upgrade its infrastructure to attract more organisers holding local and international events.
Earlier this year, Reuters reported that Malaysia’s state oil company Petroliam Nasional (Petronas) is planning to bring back F1 races to SIC in 2026, citing sources familiar with the matter. To note, the company had bought the naming rights to the circuit in October 2023 for three years for an undisclosed amount.
Despite this, Petronas was swift to dismiss the claim, stating that there have been no discussions on bringing the sport back to the circuit.
