He said Prime Minister Datuk Seri Najib Tun Razak had agreed to his proposal to include both states in the international sports meet, which Malaysia last hosted in 2001.
"We will bring raise this matter with Cabinet and look into the costs," the Rembau MP said after attending the Kota Belud Umno Youth Hari Raya open house.
He said the initial response from Sabah Chief Minister Datuk Seri Musa Aman has been a positive one while the Sarawak state government was also open to the move.
Khairy said his ministry was preparing a working paper for Cabinet and if the costs were agreeable, the country would bid for the 2017 SEA Games.
"This is important for our long term planning to ensure sufficient facilities and development in both states," Khairy said, adding that the move was part of overall strategy to to ensure a balanced development of youth and sports facilities nationwide including in urban and rural areas.
‘’Youth development programmes must reach to the grassroots and the challenge for us in states like Sabah was a scattered population, especially in rural areas,” Khairy added.
He said his ministry was thinking of innovative approaches to ensure rural youths benefitted from his ministry’s programmes.
Khairy said among the things they were looking at was the construction of a race car circuit in Kota Belud.
He said discussing this proposal with Kota Belud MP Datuk Abdul Rahman Dahlan, the Urban Wellbeing, Housing and Local Government Minister.