Singapore billionaire Peter Lim is planning to build a new FIA-compliant circuit in the Iskandar region of south Malaysia.
Lim said a 4.5 kilometre test track, to be conceived by an as-yet unnamed designer, will be part of a motorsports-themed development known as 'Motorsport City'.
The venture, of which Lim's FASTrack Autosports Pte has a 70 per cent holding, is valued at more than $1.2 billion.
It is planned for the Johor state, which borders Singapore, just five minutes drive from the Tuas Second Link border crossing between the two countries.
Malaysia already has a permanent grand prix track at Sepang, which has hosted 14 Formula 1 grands prix since first being included on the calendar in 1999.
Singapore meanwhile hosts F1's only night race, and agreed to a five-year extension with F1 supremo Bernie Ecclestone in September.
Lim plans for the circuit to achieve FIA Grade 2 certification.
"The region is fast becoming a hub for motorsports," Lim, a shareholder of McLaren Automotive, is quoted as saying by Bloomberg.
Malaysian developer UEM Land Holdings Bhd. will hold the remaining 30 per cent of the venture.
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