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Ushar Daniele

Malaysia once decided Formula One was too expensive to keep, but Bahrain’s displaced Grand Prix has given it an unexpected route back to the calendar, as well as a chance to test whether the sport can still deliver value without the full financial burden of a long-term comeback.
Analysts say the one-off race, made possible by the war in Iran and the cancellation of April’s races in Bahrain and Saudi Arabia, offers Malaysia more than a nostalgic return to Sepang: it provides a timely tourism lift and a chance to position itself as a stable Southeast Asian base for global sporting events.
The race is set to be held at Sepang International Circuit, the former Malaysian Grand Prix venue outside Kuala Lumpur, on the weekend of October 2 to 4, restoring the F1 season to 23 races after disruptions caused by the Middle East conflict.
Formula One said the Sepang race would officially be designated the “Gulf Air Bahrain Grand Prix in Malaysia”, subject to final agreements and approval by the World Motor Sport Council.
Questions remain over whether the season’s closing races in Qatar and Abu Dhabi will proceed as scheduled, with Italy’s Imola circuit reportedly under consideration should further calendar changes be required.

“Sepang holds a special place in Formula One history. It will provide a spectacular setting for racing and an unforgettable experience for fans at the circuit and watching around the ‌world,” F1 CEO Stefano Domenicali said.
Malaysia hosted the Malaysian Grand Prix for 19 seasons, from 1999 until its final race in 2017, when the government pulled the plug on hosting because of increasingly high costs.
It had since ruled out reviving event, citing hosting fees of roughly US$73.3 million a year under a three- to five-year contract with F1 commercial rights holder Liberty Media, plus a further US$2.4 million annually for track maintenance.
But this one-off return is being framed as a far cheaper proposition, with Bahrain funding the primary costs while Malaysia is committing only 16 million ringgit (US$3.9 million) towards track maintenance fees, according to sports analyst Nicholas Anil.
Singapore currently hosts Southeast Asia’s only F1 race, drawing up to 300,000 spectators over the race weekend, while Thailand has bid to stage a street race in Bangkok from 2028 to 2032.
Economic upsides
Sunway University economist Yeah Kim Leng said the Sepang race could deliver a significant short-term boost to the economy by coinciding with Visit Malaysia Year 2026, the country’s national tourism campaign.
Tourism accounts for roughly 15 to 16 per cent of Malaysia’s gross domestic product, with spending flowing through airlines, transport, hotels, food and beverage, retail, leisure and entertainment.
“Given its large footprint in the economy, increased tourist arrivals and spending will have a sizeable economic impact,” Yeah said.
He added that the arrangement made commercial sense, since Sepang already had purpose-built facilities and hosting experience. Expected ticket revenue could exceed the cost of refurbishing the track, Yead added, while reviving the circuit would help offset maintenance costs.

Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid described the relocation as a “blessing in disguise”, arguing the Middle East crisis had created an opportunity for Malaysia.
“It also highlights Asean as a peaceful region with a conducive environment for organising such major events,” he said. “Malaysia can be seen as a reliable partner, which could strengthen diplomatic ties and benefit both sides.”
Mokhzani Mahathir, president of the Motorsports Association of Malaysia, said F1’s return to Sepang could generate a substantial economic impact, with the hospitality, tourism, airline and food and beverage sectors expected to benefit.
He noted that about 30 per cent of F1 and MotoGP spectators were foreigners, and was optimistic that many would extend their stay in the region, given the Malaysian race was scheduled to occur just before the Singapore one.
“A lot of people will stay on in this part of the world, benefiting both countries. I do believe that most will be in Malaysia because it’s less expensive than across the border,” Mokhzani told state media Bernama.
‘Long-awaited wish’
While there is no indication that F1 will return to Malaysia on a permanent basis, the economic value of international motorsport has kept Sepang firmly on the map.
Malaysia has renewed its contract to host the MotoGP, securing the circuit’s place on the two-wheel motorsport calendar until 2031.
The country’s Youth and Sports Ministry said earlier this month that MotoGP generated up to US$169.5 million in revenue and created 4,400 jobs in 2024.

Minister Mohammed Taufiq Johari said in a statement on Sunday that the coming race was expected to strengthen Malaysia’s motorsport ecosystem, cement its status as a leading destination for international sporting events and stimulate economic growth through sports tourism.
“The return of Formula One to Sepang will undoubtedly fulfil the long-awaited wish of Malaysian motorsport fans to once again witness the event on home soil,” he said.
Anil, the sports analyst, said F1’s return to Malaysia – even for a one-off event – would allow the country to stand out in terms of its location, geopolitical security and warm hospitality.
“The fact the government is not busting the bank to host this race is a bargain, as compared to the economic impact this event will deliver in the coming months and over the weekend, with hotels in the nearby locations close to the Sepang circuit already sold out,” he said.
“This is an indication of how well the country has done in this Visit Malaysia year.”

For fans, the return is more than an economic windfall.
Justin Yip remembers watching his first F1 race at the age of 13 and is now excited to share that same thrill with his five-year-old daughter.
“I watched it back in 1999, and now I have a daughter; I am really excited to bring her along [for the race],” the 40-year-old told This Week in Asia, recalling how he had watched racing legend Michael Schumacher take on the Sepang circuit.
“The V10 engines were so loud it would pierce through your ears. Who knew it could be so loud,” he said.
For others, the pride of having the Grand Prix back on Malaysian soil is unbeatable.
Hisham Jaafar, 47, who has attended four races since the 2000s, said the announcement was thrilling enough for long-time fans like him.
“It’s like the circus is back – even for a one-time stop,” he said.


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Fernando Alonso of Renault during the first practice session at the F1 racetrack in Sepang, near Kuala Lumpur, Malaysia, on March 17, 2006. Photo: EPA

Malaysian fans watch the race line-up on the Sepang International Circuit grandstand. Photo by Ushar Daniele

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Sepang International Circuit still hosts races and championships even after F1 exited Malaysia in 2017. Photo by Ushar Daniele

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MotoGP riders compete on a wet track during the 2017 Malaysia Motorcycling Grand Prix at Sepang International Circuit in October 2017. Photo: EPA-EFE

Alex Yoong (centre) meets young fans at the Sepang International Circuit in Malaysia. Photo: Ushar Daniele

Alister Yoong, son of Malaysia’s only F1 driver Alex Yoong. Photo Handout

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The one-off race in Sepang could deliver an economic boost and position Malaysia as a stable regional base for global events, analysts say


The one-off race in Sepang could deliver an economic boost and position Malaysia as a stable regional base for global events, analysts say.


How a displaced F1 race could be Malaysia’s ‘blessing in disguise’

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The one-off race in Sepang could deliver an economic boost and position Malaysia as a stable regional base for global events, analysts say

The one-off race in Sepang could deliver an economic boost and position Malaysia as a stable regional base for global events, analysts say