The biggest obstacle to such a plan has left his position as CEO of the Sepang circuit to concentrate on the MotoGP team. His successor is known to be less hostile to F1. The second biggest obstacle is political: the attitude of the incumbent government to F1 is not yet known. The government until early this year, which still has influence, is in favour of F1 at Sepang. That might tip the current government away from it.
Ironically it is political (small p) interference that was one of the reasons Sepang started to lose its international appeal from a spectators’ point of view. It holds a surprising range of races, almost all with near empty stands.
If the new management can be given the freedom to operate a fully international circuit with appropriate entertainment including unrestricted catering, then maybe, just maybe, the international crowd might come back.
Putting it back into the public eye with two races later this season would be a good start.
So long as Malaysia stands to make no loss and, ideally, a profit, there is little reason to say no. And this time, it’s F1 that needs Sepang more than Sepang needs F1.