KUALA LUMPUR – Malaysia cannot afford to lose another premier motorsport event after the painful exit of Formula One, with Sepang International Circuit (SIC) saying the experience was a key factor behind the decision to secure MotoGP’s future in the country until 2031.
SIC chief executive officer Azhan Shafriman Hanif said Malaysia’s stint as a Formula One host from 1999 to 2017 served as a stark reminder that once a world-class sporting event disappears from the calendar, bringing it back is an uphill battle.
He said the decision to discontinue Formula One was driven by escalating hosting fees, waning global interest in the championship and declining ticket sales in Malaysia.
“MotoGP is an investment by the Malaysian government and SIC that delivers long-term returns, not only through economic impact but also by developing local talent and strengthening Malaysia’s reputation on the global stage.
“We learnt an important lesson from Formula One. Once you let go of an event of this calibre, it is extremely difficult to bring it back.
“That is why extending the MotoGP agreement is the right decision and a strategic move by both the government and SIC to ensure Malaysia remains a leading destination for international motorsport,” he told Scoop.
Beyond securing MotoGP’s future, Azhan said the new hosting agreement also supports SIC’s long-term goal of becoming less reliant on government funding.
He said SIC has matured significantly since its establishment in 1999 and is now moving towards greater financial self-sufficiency.
“Just like a young adult entering the workforce and becoming financially independent, SIC is moving in that direction.
“Government support will be reduced progressively, beginning with a 10 per cent reduction before reaching 50 per cent by the fifth year,” he said.
To achieve that goal, SIC plans to diversify its revenue streams by expanding premium hospitality offerings, attracting more commercial sponsorships, securing festival naming rights and creating new investment opportunities.
Azhan also cited a PricewaterhouseCoopers economic impact study, which found that every RM100 million invested in MotoGP generates an estimated RM630 million in economic returns — a 6.3-fold return on investment.
He said the benefits extend well beyond ticket sales, creating positive spillover effects for tourism, hospitality, logistics and government tax revenue.
“Last year we welcomed around 160,000 spectators, and this year our target is approximately 200,000.
“However, our priority is not merely increasing attendance but enhancing the overall fan experience and maximising the value generated by the event,” he said.
Azhan added that MotoGP remains a strategic national asset, contributing not only to the economy but also to the growth of Malaysia’s motorsport ecosystem through talent development, technological advancement and greater international visibility.
Malaysia recently secured a five-year extension to host MotoGP at Sepang from 2027 to 2031.
Youth and Sports Minister Dr Mohammed Taufiq Johari said the Cabinet had approved the extension, which will take effect after the current hosting agreement expires at the end of this year. – July 2, 2026