Tourism and Culture Minister Nazri Abdul Aziz today admitted there is no point for Malaysia to continue hosting the Formula 1 Grand Prix beyond 2018 due to the high costs and declining returns.

Based on discussions with industry players, Nazri said he was informed that on top of the USD50 million costs for the licence to hold the event, organisers would need to spend hundreds of million ringgit more for other preparations.

This is aside from the declining popularity of the annual event as an attraction for visitors, he said.

"So after I heard the discussions, when Khairy (Jamaluddin) issued the statement that Malaysia may stop hosting the race... I support it.

"Because when we can no longer even cover the cost, that is bad. There is no point," he told a press conference in Kuala Lumpur after launching the KL Bike Week 2016.

He said this when asked whether a final decision had been made on a reported proposal by Youth and Sports Minister Khairy Jamaluddin last month that Malaysia should put the brakes on hosting the F1 race.

Nazri also revealed that he had been approached by Sepang International Circuit to request for sponsorship but he had to inform them that his ministry could no longer afford to do so due to budget cuts.

Earlier in his speech, Nazri said his ministry also could not afford to sponsor the KL Bike Week, which he described as a good event to develop the motoring industry as a potential tourist attraction.

"If you want sponsorship, you have to tell the finance minister, don't cut my ministry's budget. If my budget is cut, it will be difficult for me to sponsor," he said.

Nazri, however, announced a contribution of RM30,000 for Red Garage Malaysia as organisers of KL Bike Week 2016, taking place on Dec 16 and 17 at The Lanai, Malaysian Tourism Centre on Jalan Ampang.

He also agreed to a request by KL Bike Week project director Dira Abu Zahar, who is also a Puteri Umno exco member, for the event to be included in the Malaysian Tourism Calendar of events for next year.