F1 Is Coming Back to Malaysia: Here’s What It Means for the Economy (and Your Wallet)

Formula 1 is returning to Malaysian soil for the first time since 2017. On 26 July 2026, Formula 1 and the FIA confirmed that the Sepang International Circuit (SIC) will host the Formula 1 Gulf Air Bahrain Grand Prix from October 2 to 4, 2026, slotting in between the Azerbaijan and Singapore Grands Prix. The race was relocated after Bahrain, citing regional security concerns, opted to move its own Grand Prix to Sepang rather than cancel it altogether.

A race Malaysia barely has to pay for

One of the more striking details to emerge is just how little this is costing Malaysian taxpayers. Prime Minister Datuk Seri Anwar Ibrahim said Malaysia will not pay any FIA registration fees for the event, with government spending capped at around RM16 million, mainly to cover routine upgrades to the circuit. Anwar noted that other countries typically spend hundreds of millions, sometimes up to RM1 billion, to host a Formula 1 race, since Bahrain is footing the bulk of the hosting bill this time around.

That’s a sharp contrast to 2017, the last time Malaysia hosted an F1 race, when costs reportedly ran into the hundreds of millions.

The economic case, according to Putrajaya

According to Free Malaysia Today, Deputy Prime Minister Ahmad Zahid Hamidi has framed the race as a long-term win for Malaysia even though Bahrain is covering the heavy costs. Speaking in Sepang, he said the race will be watched by millions of viewers worldwide, further enhancing SIC’s international profile, while higher tourist numbers and greater global exposure could attract more investment and pave the way for future world-class events.

Zahid also pointed to SIC’s underused capacity, noting the circuit has world-class facilities that haven’t been fully utilised outside of MotoGP, and expressed hope that a successful staging could eventually help Malaysia secure funding and sponsorship to host its own full F1 race again in future years.

Industry voices echo the optimism, though with a more measured tone. Former SIC CEO Datuk Razlan Razali described Malaysia as simply the most cost-effective option on the table compared to alternative venues, and said the circuit itself needs no major changes to meet F1 requirements, any track upgrades would largely be Bahrain’s call.

Meanwhile, the Motorsports Association of Malaysia has flagged tourism, hospitality, airline, and F&B as sectors likely to feel the benefit directly, given that foreign visitors typically make up around 30% of the crowd at F1 and MotoGP events in Malaysia.

What this means beyond the track

For Malaysians, the race brings more than nostalgia. A confirmed October date means hotel bookings, ticket sales, flights, and everyday spending in the Klang Valley and Sepang area are likely to pick up in the run-up to race weekend, both for locals planning a trip to the circuit and for the broader tourism and retail ecosystem expecting a bump in visitor numbers.

It’s worth noting the deal is still subject to final sign-off from the FIA’s World Motor Sport Council, so some details, including ticket pricing, have yet to be finalised. Anwar has hinted that affordable ticket options are being considered, though not for front-row seats.

Planning ahead for race weekend?

Whether you’re budgeting for flights and hospitality packages to catch the action trackside, or simply making room in your monthly finances for the extra spending that comes with a big event season, it’s worth knowing where you stand before committing. If you’re weighing a personal loan or financing option to cover travel and event costs, check your eligibility first with iMoney’s pre-screening tool, it gives you a quick read on which products you’re likely to qualify for, without affecting your credit score.