Putrajaya hits the brake on unprofitable M'sian Grand Prix

Malaysia will no longer host Formula One (F1) races from 2018 onward, said Prime Minister Najib Abdul Razak.

"The cabinet has agreed to end the contract of hosting F1 races starting 2018 as its diminishing returns to the country becomes more obvious compared to the cost of organising the race," he added in a statement today.

He said this decision was made after considering reports and opinions from the Sepang International Circuit (SIC) about the financial impact of F1 events on all stakeholders.

He cited the decreasing number of spectators, visitors and foreign tourists during the championship over the past few years.

In 1999 when Malaysia first hosted the F1 championship, only 16 countries were hosts to this prestigious event, Najib said, but now it has increased to 21 countries.

This has also caused the low returns to the host countries, he said.

Once the government stops hosting the F1 race, he said Putrajaya can increase funding to develop talent, infrastructure, skills and knowledge in motorsports.

The government will also use the funding for other things, like to develop racing sports like MotoGP and Go-kart, build a special race track in Sungai Petani, upgrade SIC facilities and help the country's professional drivers become F1 drivers, he said.

The Sepang circuit will continue to play an important role in promoting Malaysia internationally, he added, as it will continue to host other spectator sports like MotoGP.

Despite all this, Petronas, he said, will continue its sponsorship for the Mercedes AMG Petronas team in the F1 race as a marketing strategy for the company.

Petronas is the title sponsor for the F1 race in Sepang.

"The Malaysian government acknowledge the support given by the Formula One Management (FOM) for the past 19 years throughout the hosting of the race in this country.

"I would also like to give thanks to FOM for understanding and agreeing that F1 2017 in Sepang will be the last race on that circuit," Najib said.- Mkini