Beyond F1: How Malaysia's Sepang International Circuit Keeps Its Engines Running

( Note: This is part one of a three-part series examining Malaysia’s motorsport ecosystem, focusing on how Sepang International Circuit recalibrated its business model after Formula One’s exit through higher utilisation and recurring commercial activity)

KUALA LUMPUR, Feb 17 (Bernama) -- Malaysia’s Sepang International Circuit’s (SIC) post Formula One (F1) survival has been shaped less by the loss of global spectacle than by the strength of its utilisation-driven business model, anchored by high-frequency track usage and recurring commercial activities.

While F1 once defined the circuit’s international profile, daily track utilisation -- primarily track days, corporate bookings and manufacturer-led activities -- has long formed the backbone of SIC’s financial sustainability.

Former SIC chief executive officer (CEO) Razlan Razali said recurring usage, rather than marquee events, underpins the circuit’s operating model.

“In terms of daily track revenue, track days are our primary source of revenue. F1 and MotoGP were major revenue generators at the time, but for daily sustainability, track days are the priority,” he told Bernama.

Razlan said track utilisation levels were already high before the COVID-19 pandemic, with close to 90 per cent of available days typically booked, driven mainly by private corporations, car and motorcycle clubs, manufacturers and professional event organisers.

This high-frequency model, though less visible than race weekends, ensures consistent cash flow, year-round activity and the participation of a broader motorsport value chain, involving suppliers, manufacturers and service providers.


SIC POST-F1

Following F1’s exit in 2017, public debate often focused on perceptions of accessibility and pricing. 
Razlan said such criticism overlooked the fixed costs and regulatory obligations associated with operating a world-class motorsport facility.

He noted that operating expenses were shaped by international standards set by the Fédération Internationale de l'Automobile (FIA) and Fédération Internationale de Motocyclisme (FIM), covering track quality, safety systems and operational readiness.

These requirements limit how far pricing and access can be relaxed without undermining financial viability.

“The public often asks why SIC is so expensive or inaccessible, but it is not good to be too cheap,” Razlan said, adding that the circuit remains accountable to its stakeholders, particularly in terms of financial performance.
SIC is owned by the Ministry of Finance, with sporting direction and strategic engagement overseen by the Ministry of Youth and Sports, placing commercial sustainability at the centre of its operating mandate.


POST-PANDEMIC RECOVERY AND GROWING DEMAND

The COVID-19 pandemic temporarily disrupted operations, but utilisation rebounded sharply as restrictions eased.

Current SIC CEO, Azhan Shafriman Hanif, said track utilisation had exceeded 80 per cent in 2025, reflecting sustained demand from both domestic and regional participants.

“That has affected all maintenance, scheduled shutdowns, and everything we do to keep the track in top condition,” he said.

While higher utilisation strengthens revenue resilience, it also compresses maintenance windows, placing added pressure on infrastructure upkeep.

As utilisation intensifies, maintaining circuit standards has become increasingly complex.

Razlan cautioned that excessive cost-cutting or underinvestment could place SIC on an irreversible decline, drawing lessons from circuits that deteriorated due to funding constraints.

“The track is already built. If there’s no money and it runs down, what happens? The track closes,” he said, warning that restoration costs often become prohibitive once standards fall.



PROFESSIONAL TRACK DAYS AND DIVERSIFICATION STRATEGY

Azhan Shafriman, who took over SIC’s helm from Razlan on April 7, 2020, said a significant portion of the calendar is now taken up by professional track day organisers, many from overseas, alongside original equipment manufacturers using the circuit for car launches, filming and commercial activities.

Instead of attempting to replicate the prestige-driven model of the past, SIC has repositioned itself as a high-frequency motorsport facility, with diversification forming part of its longer-term risk management strategy.

He said SIC has developed a 10-year master plan extending to 2035, aimed at unlocking value from its undeveloped landbank through hospitality, commercial and motorsport-related developments.

The objective, he said, is not to move away from motorsport, but to support and stabilise core track operations by broadening revenue streams and strengthening the surrounding ecosystem.


STRUCTURED TRACK DAYS BENEFIT DRIVERS AND TEAMS

Professional race driver Tengku Djan Ley Tengku Mahaleel said track days today are far more structured than in their early years, reflecting changes in how motorsport participation is organised.

“Back then, track days were more for individuals who went out and kind of drove aimlessly. But nowadays, you see a very structured track day,” he said, adding that sessions now include safety briefings and driver training to help participants understand both safety and driving discipline.

Viper Niza Racing team principal and endurance racer Douglas Khoo said track days are essential for professional teams, particularly as a testing and preparation platform.

“Whenever there’s a track day at Sepang, and it doesn’t clash with my schedule, we will definitely take the car out for testing,” he said, noting that circuit access is critical as motorsport requires dedicated track time rather than informal practice.

Khoo, who founded the team in 2015, said regular track day availability allows teams to optimise preparation while managing costs, particularly for endurance racing, where extended seat time delivers greater value relative to incremental expenditure.

He added that Sepang’s consistent track day calendar provides local teams with a structural advantage that would otherwise require overseas testing at significantly higher cost.


HIGH STAKES: FUNDING THE FUTURE OF SEPANG

Khoo acknowledged that track day allocation reflects SIC’s commercial realities, with corporate bookings and manufacturer-led activities competing for limited calendar space.

While demand for additional track days exists, he said the current balance reflects utilisation discipline rather than under-provision, underscoring the circuit’s role as a revenue-generating asset that must prioritise financial sustainability alongside sporting access.

As Malaysia’s motorsport landscape evolves, Sepang’s future is increasingly determined by utilisation discipline rather than headline events, a shift that reflects the commercial realities of sustaining a world-class circuit in a post F1 era.
-- BERNAMA