Sepang CEO: Letting Go of Formula One Was a Mistake

Sepang International Circuit (SIC) CEO Azhan Shafriman Hanif has admitted it was a mistake for Malaysia to stop hosting Formula One, saying it is now extremely difficult to bring the race back. He explained that there is a long waiting list for a slot on the F1 calendar, while the costs have risen sharply.

The Malaysian Grand Prix ran from 1999 until 2017 before being dropped due to soaring fees, declining local interest, and weak ticket sales. Despite heavy subsidies from the government and Petronas, attendances continued to fall, compared to MotoGP.

Azhan revealed returning to the Formula One calendar today would cost more than RM300 million a year compared to RM160 million in 2016, excluding RM10–20 million in setup. “There is a waiting list to get back in and the costs are very expensive,” he said, stressing the need for government and corporate support.

Formula One has since grown under Liberty Media, which took over from CVC Capital in 2017. Netflix’s Drive to Survive and Saturday sprint races have boosted its global following, which Azhan believes Malaysia could tap into if the race was revived.

He cited Singapore’s model, where ministries, corporate sponsors and the hospitality sector work together to deliver the event. “It has to be like that if we bring it back here. These are national events, not just SIC’s,” he said.

SIC is currently in talks to extend its MotoGP hosting rights with Dorna Sports. Azhan noted that MotoGP provides 6.3 times return on investment, with more than 200,000 spectators expected this October. He stressed that while Formula One would take time to show similar returns, the commitment would need to be the same. 

To put it in context, MotoGP hosting costs about USD12 million (RM55 million) after a 20 percent hike this year. Compared to Formula One, MotoGP looks like a bargain and F1 more like an indulgence.