You guys are getting over complicated on the issue here. it all boils down to one thing, "money"!. It doesn't matter where it comes from, your own pocket, other peoples pocket, some company's pocket, or the governments pocket. As long as you have the money, you can do it.
If the government doesn't want to help, there is nothing wrong with that as well. To expect the government to pay for every single thing that "we" want isn't right. Sure, some people get lucky, and get the support from the govt. As Malaysians, we shouldn't expect a free lunch from the govt everytime we want something. Usually, its up to determined individuals or a group of them who can work out a great business plan, and convince either the banks, or companies to support their idea and loan or sponsor them the money.
Take a go-kart track for example. If you have managed to identify a piece of land, managed to lease it, or buy it, or if you're lucky, managed to inherit it, you could build up a business plan to get a bank to loan you money to start up.
You need to identify your target audience, how you're going to run your business, how big will you start out, whats your business all about, how much money you need and why, how much you expect to make back..etc .etc. If your case is strong enough, you could probably get a bank loan to start up and build your track..etc. Hopefully you'll make enough money to pay the bank back :)
As for running a motorsports event, if you dont have a track, you'll need to identify an area and get permission from the owner. if you do, you'll need to work out security, crowd control, safety..etc. You will also need to get public liability insurance. If you can get all these things done thru the proper channels, getting a police permit is usually not a problem. If AAM sanctioning is what you want, you will need to work thru an AAM motorsports club. Of course, all the above takes money, and you will need to source for sponsors, and convince the sponsors to give you money. There must be an equal return for a sponsor.
Remember, sponsorship money is not charity. Companies do sponsorship as a marketing activity. There must be a significant return on their investment. Most people do not fully appreciate and understand that, even some people who currently run motorsports events or participate in them.