Nazri said it cost the country about RM300 million a year to host the event and “there have been no returns”.

He said Malaysia would not be extending the agreement once it ends in 2018.

However, he said the Sepang International Circuit (SIC) would not go to waste as it would be used for Moto GP sports, which is more lucrative.

“The circuit could also be used by Mat Rempit,” he said.

Furthermore, he said Malaysia’s hosting of the F1 races was meant to encourage local participation in international sports, which it had failed to achieve.

He was asked to respond to a tweet by Youth and Sports Minister Khairy Jamaluddin who wrote that F1 should be discontinued as it was not profitable.

Nazri said: “I can understand why he made the statement. It is becoming expensive to host F1.

“We have seen that over the years, attendance at the race has gone down. There is less traction from people.”

It was the same in Singapore, he said, which had seen fewer tourists coming to the country during F1.

“In Malaysia, there are more than 30 teams and drivers in the race. Hotel rooms are booked. But in the long run, it is not benefiting the country.”

Nazri pointed out that the scenario was different for Moto GP, which had a bigger fan base in the country.

Several weeks ago, SIC chief executive officer Ahmad Razlan Ahmad Razali had said that the fate of F1 events in Malaysia would be decided soon.

He had said the cost of hosting the F1 was too high and returns low.

Razlan had also said F1 ticket sales had been on the decline since 2014 and that recent sales had been only between 55% and 60%.

Comparatively, Razlan pointed out, Moto GP tickets were consistently sold out.