"RM100M Feels Like RM50M Now": Tun M Urges Malaysia To Buy Back Formula 1 Hosting Rights

Former Prime Minister Tun Dr Mahathir Mohamad has voiced his strong support for Malaysia regaining permanent hosting rights to Formula 1, arguing that changing money values make the cost far more manageable today than in previous years.

Speaking on the latest episode of the DR. M Podcast, the 101-year-old statesman emphasized that the economic returns from tourism and global exposure far outweigh the hosting fees, even as Sepang International Circuit (SIC) prepares to host a temporary race weekend from 2 to 4 October 2026.

"RM100 Million Is Not As Big As Before"

Reflecting on Malaysia's motorsport history during his podcast episode released on 13 August 2026, Tun M addressed the financial considerations that led to Malaysia stepping back from hosting the Grand Prix after 2017.

"Money values have changed. In the past, RM100 million was huge, but today RM100 million feels like RM50 million used to," Mahathir stated. 

Malaysia originally paid RM50 million annually to host the event, with national oil firm Petronas serving as title sponsor for 19 years (1999–2017). However, after Liberty Media acquired Formula 1 in late 2016, hosting fees jumped to RM100 million, prompting the government to exit the calendar.

According to Mahathir, the original decision to build Sepang on unused land near Kuala Lumpur International Airport (KLIA) was a strategic initiative to build national brand equity in place of traditional historic landmarks.

"When we started promoting tourism, people asked what we had since we didn’t have pyramids like Egypt. We had to create an event and we believed Formula 1 would bring in tourists from around the world," he explained.

The Economic Equation: Beyond Ticket Sales

Addressing critics who point to high hosting costs, Mahathir underscored that direct ticket revenue was never the sole metric for success:

• Foreign Exchange Inflow: Over 100,000 international visitors bringing foreign currency directly into hotels, restaurants, tourist attractions and more. 
• Global Media Exposure: Hundreds of millions of viewers watching the Malaysian Grand Prix globally, acting as a live advertisement for the country.
• Paid-Off Infrastructure: Because the initial construction costs of Sepang International Circuit have long been recouped, Malaysia operates the world-class facility at zero debt overhead.

However, a permanent return to the annual F1 calendar presents a modern financial hurdle. Last month, Sepang International Circuit CEO Azhan Shafriman Hanif revealed that securing a permanent multi-year slot on the modern F1 calendar requires a commitment of at least RM300 million annually, triple the figure cited from past contract negotiations.