A Singapore billionaire has revealed plans to build a second circuit capable of hosting an F1 race in Malaysia.

Peter Lim has announced that he hopes to build a motorsport-themed development in the Iskandar development region of Johor state in the south of the country, close to the border with Singapore.

The development, dubbed Motorsports City, would cover 27 acres and include showrooms, garages, entertainment outlets and a 4.5 kilometre circuit to be designed by an un-named F1 track designer.

"The region is fast becoming a hub for motor sports," Lim said in a statement.

Lim's FASTrack Autosports Pte will take a 70 per cent stake in the joint venture valued at more than $1.2 billion, with the remaining stake being held by developer UEM Land Holding Bhd.

Malaysia has hosted an F1 race at Sepang since 1999.