Malaysia was jubilant Tuesday as it won a place on the Formula One grid in an alliance between Lotus, the government and entrepreneurs including AirAsia's flamboyant founder Tony Fernandes.
"This is not only a dream, it is a reality. Malaysia is part of Formula 1 and we are determined to do our best to make our mark in this arena," said Prime Minister Najib Razak.
"I believe this is a meaningful development that will boost Malaysia's image," he said.
The team will be Asia's third in the glamour event, after Force India and Toyota. Honda pulled out last December under pressure from the economic crisis.
Najib said the racing cars would be designed, manufactured and tested at Malaysia's Sepang International Circuit outside the capital Kuala Lumpur.
"They will become made in Malaysia and they will be made by Malaysians," he said, adding that six shortlisted local and international drivers were being evaluated.
"We hope to officially introduce you to our two drivers by October 31, 2009," he added.
The Malaysian alliance beat off competition from BMW Sauber to be named as the 13th team to compete in next year's Formula One World Championship, motorsport's governing body the FIA announced.
The team is backed by 1Malaysia F1 Team Sdn Bhd, a public-private partnership. Fernandes, who has created Southeast Asia's biggest budget airline, will be team principal.
The role of technical director falls to Mike Gascoyne, who has more than 20 years of experience in Formula One having previously performed the same role for the Force India, Toyota, Renault and Jordan Formula One teams.
"The 1Malaysia F1 Team will rapidly integrate a Malaysian technical and pit crew totalling some 200 people managed by one of Formula One's most respected and accomplished technical directors," Najib said.
Lotus is making its return to F1 after competing in the event from 1958 through to 1994. Malaysian national carmaker Proton bought a controlling stake in the company in the mid-1990s.
The Lotus team will initially be based in Norfolk, England, near the Lotus Cars factory at a facility built by Toyota for its initial Formula One programme and then used by Bentley for its successful Le Mans programme.
The team has agreed an engine supply deal with Cosworth and a wide variety of technical partnerships including Xtrac and FondTech.