Malaysia's F1 Return Offers Economic Upside

KUALA LUMPUR, July 27 (Bernama) -- Malaysia's hosting of the Formula 1 Gulf Air Bahrain Grand Prix (Bahrain GP) in October could provide an economic boost through tourism and related industries.

It would also serve as a "litmus test" for the government to evaluate the future of Formula 1 (F1) in the country, motorsport industry leaders said Sunday. 

Speaking to Bernama Sunday, Sepang International Circuit’s (SIC) former chief executive officer, Datuk Razlan Razali said the one-off race made sense from that perspective.

"I think it makes sense for Malaysia to be the chosen track. If you look at the commentary on the situation with other alternative tracks, including Portimao, at the end of the day, Malaysia is the most cost-effective circuit.

"This is good for Malaysia regardless of whether it is the Bahrain GP or whoever is organising it, all Malaysians can enjoy this one-off event," he said.

On Sunday, Formula 1 and the Fédération Internationale de l'Automobile (FIA) confirmed that Malaysia will host the Bahrain GP at the SIC from Oct 2–4, 2026, subject to final agreements and official sign-off, including the approval of the World Motor Sport Council.

The race will be held between the F1 Azerbaijan GP and the F1 Singapore GP.

Razlan said there were unlikely to be significant operational bottlenecks in staging the Bahrain GP on such short notice, adding that the SIC required no major changes for F1, while any infrastructure upgrades would depend on Bahrain.  

“The SIC is managed and operated to the highest standards at all times, especially our track, which is homologated to the highest FIM level. The FIA would need to conduct an inspection first, as we are not currently homologated for F1, but I don't see any major technical issues.

"Any changes to the track will not really affect four wheels. Operationally, I think there's not much that can be done at this time unless Bahrain is willing to make the changes and make the upgrade, which could benefit SIC, infrastructure-wise.  But even as it is, I believe it's okay already," he added.

Asked whether the race could pave the way for F1's permanent return to Malaysia, Razlan said the prospect remained "very remote", given the high costs of hosting the championship, unless Prime Minister  Anwar Ibrahim decides to explore the possibility further during the race weekend.

On the potential impact of the race, he said it would benefit domestic tourism, although the short lead time before the event could limit the number of overseas visitors, as F1 fans typically plan their trips at least six months in advance.

“Nevertheless, I'm also confident that diehard F1 fans from all over the world who crave the race at the SIC will make an effort to come. So how much impact we will have, we will only know when the time comes," he said.

Razlan added that the race would also create opportunities for local suppliers and food and beverage (F&B) operators, and is confident that Malaysians would turn out despite ticket prices.

"It is Bahrain's job to sell, advertise, and promote. From what I gather, this is subject to the final details.

"There is not much that Malaysia and the SIC have to do; I think it is a straightforward rent-the-track. Of course, it makes sense for them to appoint local contractors and suppliers if needed, as well as the local workforce for the weekend," Razlan said.

Meanwhile, Motorsports Association of Malaysia (MAM) president Mokhzani Mahathir described the return of F1 to Sepang -- albeit under the Bahrain GP banner -- as a welcome development for motorsport fans, particularly the younger generation who missed the championship before it left Malaysia after the 2017 season.

He said MAM's role would be limited to ensuring the event complied with FIA rules and regulations, including safety standards, circuit readiness and manpower requirements.

"Our role is to make sure rules and regulations, safety for participants, spectators, and the like are adhered to. We have to make sure the circuit is ready for the race," he said to Bernama.

On the economic impact, Mokhzani said the hospitality, tourism, airline and F&B sectors are expected to benefit from the race, noting that typically, around 30 per cent of F1 and MotoGP event spectators are foreigners.

He opined that Malaysia would benefit from the race being held a week before the Singapore GP.

"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 Bernama.

He noted that Malaysia's financial risk profile would be significantly lower, with Bahrain footing the bill.

"Well, you can imagine if somebody else is paying for it, our return on investment, whatever that might be, is going to be sky high," he said.

Mokhzani said Malaysia has the infrastructure and experience to host an event of F1's scale and does not expect the short lead time to pose major logistical challenges.

"I don't think it is a problem at all. Malaysia is always ready to host international-class events of this size. We have five-star hotels everywhere in Kuala Lumpur, Putrajaya, and around that area. So hosting this event is not going to be a problem," he said.

Meanwhile, former F1 driver Alex Yoong said any return of the championship to Sepang should be viewed beyond a single race weekend, with the potential to strengthen Malaysia's broader motorsport ecosystem.

While acknowledging the tourism and business opportunities that the F1 could generate, he said the championship should also serve as a catalyst for greater investment in grassroots motorsport and driver development.

“We have a world-class track, and, as someone who raced in F1 and has spent much of my career developing motorsport in Malaysia and the region, it would be great to see a Southeast Asian circuit back on the F1 calendar.

"But bringing F1 requires a strong commercial case and a clear vision of what the event can deliver for Malaysia beyond just one race weekend," he told Bernama.

Yoong added that he hoped the event would reignite support for Malaysia's entire motorsport ecosystem, from sim racing and karting to professional championships, while encouraging greater investment in developing local talent.

-- BERNAMA