Malaysia Bids Adieu to Formula One: Sponsorship Costs Too High

Malaysia's sports minister Hannah Yeoh announced that the country will not pursue hosting the annual Formula One race due to high sponsorship costs and a packed racing calendar. The event, held from 1999 to 2017, demands significant financial commitments, prompting the shift towards potential private sponsorships for future hosting opportunities.

Malaysia will not reinstate the annual Formula One race due to exorbitant sponsorship costs and scheduling challenges, as revealed by sports minister Hannah Yeoh in parliament. The prestigious event previously took place at Sepang International Circuit from 1999 to 2017.

According to Yeoh, a yearly financial commitment of around 300 million ringgit, spanning three to five years, is necessary to host the race. This figure significantly exceeds the development funding allocated for 20 national sports initiatives. Furthermore, Malaysia faces competition from Southeast Asian countries like Singapore and Thailand for a spot in the Formula One calendar, with Thailand already planning a $1.2 billion bid for 2028.

While the government currently avoids such plans, Yeoh mentioned that Malaysia remains open to hosting Formula One if private companies shoulder the costs. She encouraged potential sponsors to engage with Sepang International Circuit for further discussions.

(With inputs from agencies.)