On the first weekend of October 2026, Formula 1 will return to the Sepang circuit in Malaysia, where the Bahrain GP race will take place. Thanks to statements from Malaysian authorities, we have learned details about the costs of organizing the race. If successful, there is a chance for the Malaysia GP to have a permanent presence in F1.
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As I mentioned in the text regarding the announcement of organizing the Bahrain GP in Malaysia in this year’s F1 calendar, the Sepang circuit returns after a nine-year break. The last Malaysia GP race took place in 2017, and no further races were organized despite an existing contract (which was shortened by a year). Organizing F1 events was too costly for Malaysian authorities, few fans attended the circuit, in short, it was not profitable for them. Additionally, political changes in the country decided the matter. Malaysia focused on motorcycle races, which are much more popular there; MotoGP races are held continuously (organizing the race is several times cheaper). They left Formula 1 just as Liberty Media took over, which greatly increased the sport’s popularity in subsequent years. Currently, almost all circuits sell out tickets, which are much more expensive than before. Malaysia’s situation now would be completely different; I believe this year’s return has a chance to lead to a permanent presence in the calendar in the future.
How much does the F1 return to Malaysia funded by Bahrain cost?
Information appearing in the media indicates that Bahrain will pay the full licensing fee for organizing the race, will also decide on ticket prices, and all revenues from this will go to them. The title sponsor will be Gulf Air airlines from Bahrain. The Sepang International Circuit will be rented by the authorities in Bahrain. The authorities of Bahrain and Malaysia will share the organizational costs of the race, which also include minor modernization of the Sepang circuit. Sepang circuit officials are negotiating with Bahrain to make cheaper tickets available for Malaysian residents, but this is not yet certain. I remind you that the Bahrain circuit has small stands with less than 40,000 seats, while Sepang’s capacity is nearly three times larger. Cheaper tickets must appear, otherwise they will not fill them. Bahrain will want to attract fans to Malaysia who planned to attend their race in April, but in my opinion, only a small portion will manage to do so. They need to come up with something else, reach other fans.
Azhan Shafriman Hanif, president of the Sepang International Circuit, said that the costs of organizing the F1 race itself are estimated at 40 million RM (local currency Malaysian ringgit), which corresponds to 36 million PLN or 8.5 million euros after conversion. These costs will be shared between Malaysia and Bahrain and also include minor circuit modernization (safety zones and buildings). The licensing fee that the Bahrain authorities will pay to Formula 1 is estimated by him at 70-80 million US dollars. This is an amount beyond Malaysia’s capabilities. The total costs of organizing the race are estimated at 300 million RM – about 275 million Polish zlotys.
According to Hanif, the economies of other countries benefit by three times the costs incurred for organizing F1 events, so Malaysia could potentially gain even a billion RM (900 million PLN). This is money left in the country by tourists who come for F1, but also other people and companies who decide to come/invest in the country attracted by promotion through F1 presence. Previously, Sepang circuit authorities tried hard to sell tickets, but the stands remained largely empty. Now the situation looks different. Malaysia was already supposed to receive offers from sponsors who want to promote themselves in F1. There is very high interest in tickets, which have not yet gone on sale. Potential benefits for the country’s economy will be greater than before when they organized F1 races.
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For Malaysia to return permanently to Formula 1 in the future, three conditions must be met: this year’s race must be a success, the Malaysian government must agree to finance the licensing fee, and there must be a free spot in the calendar in the following years.
Plans and possibilities for tourism in Malaysia
Organizing the F1 race in 2026 is a great opportunity for all of Malaysia. The national tourism CEO Mohd Amirul Rizal Abdul Rahim is directly involved. They expect a large influx of tourists, fully booked hotels, increased sales of food and drinks, and transport expenses during this weekend. A promotional campaign is being prepared in cooperation with Bahrain. Malaysia plans to organize a festival promoting the country around the circuit during the Grand Prix. Previously, competition from the nearby Singapore race was a problem for them, but now due to great interest in Formula 1, it will be an opportunity. They expect many fans to attend both races and spend several days between them in the area. Many tourists coming to the Singapore GP have already stayed in Malaysia. Malaysian authorities have received signals from Singapore, Indonesia, and Thailand about organized groups of fans who will come to the race.
When it became clear that organizing the race in early October in Bahrain would be impossible, the authorities of that country came up with the idea to rent a circuit in another country. Malaysia was chosen due to very good diplomatic relations. The King of Bahrain called the King of Malaysia directly, and they quickly reached an agreement. Later, Formula 1 and FIA entered the game to prepare and sign the contract.
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