How much potential revenue could Malaysia gain from hosting F1 annually?

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Malaysia could potentially gain up to RM1 billion in annual revenue from hosting F1
Malaysia’s potential return from hosting Formula 1 annually could reach RM1 billion if it spends RM300 million each year, according to Sepang International Circuit (SIC) Chief Executive Officer Azhan Shafriman Hanif. His estimate ties the annual cost to Formula 1 hosting rights fees and local preparation costs, with hosting rights fees currently estimated between US$70 million and US$80 million (RM289 million to RM340 million).
The annual spending figure tied to the return
Hanif said Malaysia would need to spend no less than RM300 million annually to secure a permanent place on the Formula 1 calendar. He described this as the cost that includes both hosting rights fees and local preparation work required to meet race specifications.
The potential return estimate if Malaysia spends RM300 million
He added that host countries, based on data he had seen, typically generate returns of at least three times what they spend. Using that three-times framing, RM300 million in annual spending could translate into potential returns of up to RM1 billion.
Hosting rights fees currently estimated in the cost breakdown
The hosting rights fees were estimated at between US$70 million and US$80 million, which he translated to RM289 million to RM340 million. These figures were presented as part of the overall RM300 million-or-more annual cost to support Malaysia’s bid for a permanent calendar slot.
The two conditions for any permanent slot on the calendar
Hanif said Malaysia would need both the ability to pay the hosting rights fees and an available slot on the Formula 1 calendar itself. Without a calendar slot, hosting would not proceed as a permanent arrangement, even if funding for rights fees is available.

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How much potential revenue could Malaysia gain from hosting F1 annually?

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