20/08/2025

WEDNESDAY | AUG 20, 2025

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‘Return of GP motor races could lift economy with fiscal discipline’ PETALING JAYA: Reviving Formula 1 in Malaysia could inject fresh economic momentum, boost global recognition and restore national pride but only if the high-cost venture is tied to broader national strategies, experts say. Idham acknowledged the financial risks but said they could be offset through public-private partnerships. potential to create jobs, training opportunities for youth and business prospects for SMEs. profile internationally. “Realistically, Malaysia doesn’t need F1 to maintain its motorsport reputation. But F1 has a huge following and can put Malaysia back on the world stage while drawing attention to Sepang Circuit.”

“The government could set conditions on the use of land and facilities to ensure local communities benefit from the event. In that way, F1 could be a tool for inclusion and empowerment, not just an elite spectacle.” Regarding costly infrastructure upgrades, he noted that improvements to SIC should be seen as investments in Malaysia’s capacity to host world-class events. “Provided they are used and managed responsibly, these upgrades could benefit the wider population by improving the country’s transport network and facilities.” Motoring journalist and automotive expert Keshy Dhillon also welcomed the prospect of F1’s return, saying it could revive Malaysia’s

“The government’s role would be to weigh short-term pain against long-term gain. If delivered with fiscal discipline, F1 could even create additional fiscal space by generating tourism, foreign investment and business activity.” He, however, cautioned that Malaysia’s return to the sport must go beyond symbolism or nostalgia. “If integrated with industrial policy – such as positioning Malaysia in the global motorsports supply chain or attracting investment in green mobility technology – it could have longer-term benefits.” On social impact, Idham said F1 had the

Universiti Teknologi Mara senior economics lecturer Dr Mohamad Idham Md Razak argued that Malaysia could reap significant benefits by rejoining the circuit, provided it was managed with fiscal discipline and clear policy goals. “Re-entry into F1 could act as a circuit-breaker for economic malaise and help restore national pride at a time when Malaysia needs both. “While it might seem counterintuitive to invest in F1 amid economic strain, there’s potential for the move to open doors for future investment, job creation and international exposure.”

Madani housing campaign to boost growth, says Nga “However, these upgrades could allow SIC to host other events, helping to recover costs. While expensive, the improvements could put Malaysia back on the global motorsport map and generate tourism and business benefits.” – By HARITH KAMAL PUTRAJAYA: The Housing and Local Government Ministry is set to roll out the Madani Home Ownership campaign, aimed at spurring economic growth and boosting related industries. Minister Nga Kor Ming said the initiative could spur growth in as many as 200 industries tied to housing and construction. “With the Madani Home Ownership campaign, every Malaysian can own their dream home,” Nga told reporters after a press conference held following an engagement session with stakeholders nationwide in conjunction with Budget 2026 yesterday. Also present were his deputy minister Datuk Aiman Athirah Sabu and ministry secretary-general Datuk M Noor Azman Taib. Nga stressed that the government’s priority is not simply imposing a ceiling price for houses, but raising household incomes in line with Malaysia’s high-income nation aspirations. “Don’t focus on the wrong thing. We want to focus on how to raise the people’s income.” Among the new mechanisms being considered to tackle affordable housing and living costs is the use of advanced construction technology to shorten project timelines. Nga also announced he will table the first reading of the Urban Renewal Act this Thursday, with the second and third readings scheduled for Aug 27. “This is the new direction for the country to ensure that our cities continue to develop sustainably. We have held 101 engagement sessions with stakeholders, and the Act has been referred twice to the Parliamentary Special Select Committee.” He added that under the ‘traffic light’ system he introduced, local councils performing well will receive more funds, while underperforming ones risk budget cuts. “For those in the green, we will double their budgets, those in yellow, we will reconsider, while for those in red, I’m sorry, but their allocations will be withdrawn.” The ministry is also eyeing an additional RM1 billion allocation for public cleaning next year, with plans for 20% of vehicles used in city cleaning to be electric by 2027, in line with Malaysia’s net zero carbon emissions target. Looking ahead to Budget 2026, Nga said the ministry will propose 10 new initiatives focused on national development, including 10,000 public infrastructure projects. “Our strong track record last year saw us deliver 6,011 public facility projects, from recreational parks and public markets to food courts, hawker centres and toilets.” More than 300 stakeholders attended the engagement session, with over 30 representatives putting forward 50 proposals. Nga said he will present these to the Finance Ministry on Sept 4 for consideration in Budget 2026. On SIC’s readiness, Dhillon pointed out that the track was upgraded several years ago, mainly for MotoGP and is broadly fit to host F1. “Some additional work, such as improving drainage and installing proper lighting for a night race, would be needed. Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

F1 revival debate heats up

Ű BY HARITH KAMAL newsdesk@thesundaily.com

o Critics argue the RM300m price tag outweighs prestige, urging funds be channelled to struggling families instead

PETALING JAYA: The idea of reviving Formula 1 (F1) races at the Sepang International Circuit (SIC) has sparked scepticism, with experts warning that the multi-million ringgit price tag could outweigh potential benefits amid the country’s current economic and social pressures. Economist Prof Geoffrey Williams said the government should avoid using public funds to finance the event, which Malaysia hosted for nearly two decades before dropping it in 2017. “If hosting F1 is viable from an economic and business perspective, it should be funded entirely by the private sector. “If it is not viable from a private investment perspective, then government investment makes no sense either.” Williams added that F1 should serve as a lesson from the past rather than an aspiration for the future. “It was not sustainable and did not deliver the economic, social or multiplier effects often claimed by proponents of government

to return to F1 given Malaysia’s long history with the sport. “We have hosted F1 for 19 consecutive years. Isn’t that enough? With more countries vying to host, fees will only rise. The owners of F1 are savvy and business-minded, not generous. “A wiser approach would be to use that money to improve the lives of Malaysians rather than compete for prestige.” SIC chief executive officer Azhan Shafriman Hanif was reported as saying the circuit has not ruled out hosting F1 again but stressed it would require serious funding, strategic planning and nationwide commitment before any proposal could move forward. He added that SIC is ready to coordinate a potential comeback, acting as a bridge between government stakeholders and F1 management. Malaysia last hosted an F1 race in 2017, before ending a 19-year run that began in 1999.

involvement. “If it had delivered benefits, it would still be running. It did not, hence it was discontinued.” A businessman, who wanted to remain anonymous, echoed these concerns, calling the potential cost unnecessary and misaligned with national priorities. “Spending US$70 million (about RM295 million) for a single Formula 1 race is totally unnecessary. Once setup and related costs are included, Malaysia could pay more than RM300 million for just one event,” he said. He suggested the funds could instead uplift struggling Malaysians. “That RM300 million could subsidise 20,000 B40 families with RM15,000 each, helping them financially to own their first home. Supporting 20,000 families would directly benefit at least 100,000 Malaysians.” The businessman also questioned the need

The SIC, once home to 19 years of F1 races, is again in the spotlight as Malaysia debates a costly comeback. – AMIRUL SYAFIQ/THESUN

Education loan exemption for first-class honours starts next month

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

Mustapha said the government was open to such restructuring. “Setting income thresholds is a good idea. The education fund already allows repayment restructuring so borrowers can pay according to their means. Our aim is to ease their burden and be compassionate.” He added that the education fund operates on a revolving fund dependent on repayments and urged those in difficulty to seek help directly from the agency. As of July this year, the education fund has approved loan disbursements worth RM59.44 billion for 3.1 million B40 borrowers.

Eligible graduates, especially those with first-class honours, may reapply,” he said. Responding to Kepong MP Lim Lip Eng on the discontinued travel ban, Mustapha said the matter was still being studied but no decision had been made. “We may revisit it, but at present there are no plans to impose a travel ban. Our priority is to help borrowers meet their obligations,”he added. Muar MP Syed Saddiq Syed Abdul Rahman meanwhile, flagged repayment struggles among graduates earning below RM2,200, citing a 2020 proposal for deferred or phased payments based on income levels.

PETALING JAYA: Applications for the National Higher Education Fund Corporation first-class honours loan exemption will reopen on Sept 1, but the government says there are no plans, for now, to revive the travel ban on loan defaulters. Higher Education Deputy Minister Datuk Mustapha Sakmud told the Dewan Rakyat the loan exemption scheme, introduced in 2001, remains available for top graduates. “The education fund website has been updated and applications will reopen on Sept 1.