Sanusi Distances Himself from RM40 Million Circuit Case

The Sungai Petani International Racing Circuit (Litar Lumba Antarabangsa Sungai Petani) is a state-level motorsport infrastructure development project in Kedah, Malaysia. Managed under the administrative oversight of the Kedah state government with funding support from the Ministry of Youth and Sports (KBS), the facility is categorised as a public-private regional sports infrastructure development. The initiative aims to provide northern Malaysian motorsport enthusiasts and local competitive racers with an accessible venue, eliminating the necessity to travel to the Sepang International Circuit (SIC) in Selangor.

Key Facts

The development parameters, budgetary allocations, and investigative milestones associated with the Sungai Petani circuit development encompass verified governmental allocations, ongoing private corporate disputes, and federal law enforcement actions in Kedah, Malaysia.

The Sungai Petani racing circuit received an initial allocation of RM30 million from the federal Ministry of Youth and Sports before its RM73 million master plan was submitted for state review.

Why Did Sanusi Distance Himself from the RM40 Million Case?

Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor stated on 8 October 2026 that neither he nor the Kedah state government bears responsibility for the RM40 million dispute. He clarified that the case involves a private commercial transaction between independent corporate shareholders rather than state administration funds.

Speaking after the land title and key handover ceremony at Desa Sejahtera Perik, Mukim Kurong Hitam, Sanusi clarified that the issue arose from corporate partner arrangements following a police report lodged by a major shareholder regarding share purchases executed between April and June 2024. The investigation led to the arrest of a female company director in her 30s by Bukit Aman's Anti-Money Laundering Criminal Investigation Division (AMLA) on 6 October 2026. Sanusi confirmed he does not know the arrested individual or the party claiming financial loss.

"Syarikat dengan syarikat, dia punya hal. Mereka selesai di pihak berkuasa, saya pun tak tahu." [Between company and company, that is their own business. They resolve it with the authorities, I do not know either.]

— Datuk Seri Muhammad Sanusi Md Nor, as reported by Sinar Harian on 8 October 2026

Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor denied all personal and state government involvement in the RM40 million criminal breach of trust case, categorising it entirely as a private corporate dispute.

How Is the Kedah Government Restructuring the Circuit Project?

The Kedah state administration is currently reassessing the original RM73 million development blueprint to scale down construction specifications to match state financial capacities. Sanusi confirmed the administration will not build to Sepang International Circuit standards, necessitating revised planning permissions and renewed land status approvals.

Out of the RM30 million federal allocation disbursed by the Ministry of Youth and Sports, RM10 million was assigned for land management matters, whilst the remaining RM20 million was designated for physical execution. Sanusi highlighted that statutory safeguards must prevent state public funds from being deployed on privately owned corporate land. If final cost projections exceed the state's budgetary threshold, Kedah will transfer the development entirely to private entities.

The Kedah state administration is actively reviewing the RM73 million circuit plan to determine whether to maintain it as a modest public venture or transition the asset entirely to private developers.

Who Is This For in Malaysia?

The Sungai Petani circuit development is primarily designed for grass-roots motorsport competitors, track-day organisers, and local racing teams based in northern Malaysian states such as Kedah, Penang, and Perlis. By offering a regional facility, the project targets motorsport participants who face high logistics costs travelling to southern venues like Sepang.

For Malaysian taxpayers and regional sports bodies, the project represents an effort to establish accessible sports infrastructure without straining state coffers. However, because local authorities must ensure public funding does not subsidise private real estate, the project’s scale is being adjusted away from international standard benchmarks towards practical, regional facilities suited to northern community requirements.

Regional motorsport participants in northern Malaysia represent the primary target users for the scaled-down Sungai Petani racing circuit.

Common Questions

Why was a company director arrested over the Sungai Petani circuit?

Bukit Aman's AMLA division arrested a female director in her 30s on 6 October 2026 following a police report by a major shareholder regarding alleged criminal breach of trust involving RM40 million in share acquisitions between April and June 2024.

How much public funding was allocated to the Sungai Petani circuit?

The Ministry of Youth and Sports allocated RM30 million for the project, designating RM10 million for land arrangements and RM20 million for project execution, whilst the state evaluates whether to continue funding the broader RM73 million proposal.

Will the Sungai Petani circuit match Sepang International Circuit standards?

No, Kedah Menteri Besar Sanusi confirmed the circuit will not be built to Sepang International Circuit standards, as the state is downsizing the initial RM73 million scope to align strictly with realistic financial limitations.

Sources and Methodology

This article synthesises primary reporting published by Careta on 9 October 2026, citing initial news coverage by Sinar Harian on 8 October 2026 and secondary confirmations from Buletin TV3 and Malay.News. All financial figures are cited in original Ringgit Malaysia (RM) values without arithmetic aggregation.

Direct quotations were translated from Bahasa Melayu into British English whilst preserving original proper nouns, administrative titles, and legal entity names. This article was last updated on 12 October 2026. Information specific to Malaysia was verified against official statements from the Kedah Menteri Besar's office and Bukit Aman AMLA division reports.

All factual reporting regarding the Sungai Petani circuit investigation is derived directly from verified Malaysian news reports published by Sinar Harian, Buletin TV3, and Careta.