RM950 Million From F1 At Sepang. So Why Is Malaysia Still Hesitating?

Nearly RM950 million in estimated economic impact, huge crowds and Formula 1 roaring around Sepang once again. On paper, Malaysia's recent F1 comeback sounds like a major success.

So why isn't the government rushing to bring back the Malaysian Grand Prix every year?

The answer isn't simply about whether Malaysians still love F1. It's about who pays, how much it costs and whether the economic benefits justify a long-term commitment.

And when that commitment could potentially reach RM1.5 billion over five years, the government's caution becomes easier to understand.

After nine years without Formula 1 racing at Sepang, the circuit welcomed the sport back from 2 to 4 October 2026, hosting the Gulf Air Bahrain Grand Prix under a special arrangement.

The event attracted approximately 261,000 attendances across three days, including 103,000 on race day.

According to the Youth and Sports Ministry's parliamentary reply reported by Bernama, the event generated nearly RM950 million in estimated economic impact, based on figures attributed to Formula One Management (FOM).

The ministry also reported more than 97,000 tickets sold, over 50,000 international tourists and approximately 5,000 foreign personnel associated with the event.

For Sepang International Circuit (SIC), the response was especially encouraging. As Carz previously reported, ticket sales had already reached record levels before the race weekend.

But the benefits weren't limited to the circuit.

These figures help explain why hosting major international sporting events can benefit businesses beyond the racetrack.

However, generating economic activity is not the same as making an annual Grand Prix financially sustainable.

Here's the crucial detail: the October race wasn't actually the Malaysian Grand Prix.

It was the Bahrain Grand Prix held at Sepang, with Bahrain covering the F1 hosting-rights fees under the special arrangement.

According to Bernama's July report citing SIC CEO Azhan Shafriman Hanif, those rights fees were estimated at between US$70 million and US$80 million  (~RM289M – RM340M).

Malaysia still had circuit preparation and local operational responsibilities, with SIC estimating around RM40 million in preparation costs to be shared with Bahrain.

Separately, Prime Minister Datuk Seri Anwar Ibrahim had earlier estimated Malaysia's circuit preparation expenditure at approximately RM10 million to RM16 million.

These were earlier estimates describing different expenditure scopes, not confirmed final accounts of Malaysia's total spending.

The key point is that Malaysia did not have to bear the enormous hosting-rights bill for this particular race.

That makes the October event financially different from what Malaysia would face if it wanted its own permanent Formula 1 calendar slot.

Securing an annual Malaysian Grand Prix would involve a considerably larger financial commitment.

SIC CEO Azhan Shafriman previously estimated that hosting F1 permanently could cost Malaysia at least RM300 million annually, including hosting-rights fees and local preparations.

But here's where the numbers become even more significant.

According to The Edge Malaysia, F1 host countries typically enter three- or five-year hosting agreements.

Based on SIC's RM300 million annual estimate, that could translate into approximately RM900 million over three years or RM1.5 billion over five years.

Those are illustrative calculations rather than confirmed contract values. Actual costs and terms would depend on any future negotiations.

Still, it changes the conversation.

Malaysia wouldn't necessarily be deciding whether one race weekend is worth RM300 million. It could be considering a financial commitment stretching across several years.

For a deeper look at the challenges of securing a permanent race, read Carz's earlier analysis of whether a Malaysian GP is worth RM300 million annually.

This is perhaps the most important distinction in the entire discussion.

Economic impact isn't the same as event profit, ticket revenue or money collected by the government.

The nearly RM950 million figure represents estimated economic activity associated with the race. That can include visitor spending on accommodation, restaurants, transport, shopping and other services.

Some of that activity benefits Malaysian businesses and workers. But it doesn't mean the government earned RM950 million, or that the event organiser made that amount in profit.

For the same reason, subtracting the estimated RM300 million annual hosting cost from RM950 million wouldn't tell us how much Malaysia could earn.

The complete economic-impact methodology, verified expenditure figures and relevant revenue breakdowns would be needed for a more meaningful assessment.

The October race demonstrated substantial economic activity. What remains uncertain is whether comparable benefits could be sustained under a conventional annual Malaysian GP arrangement.

Interestingly, an annual Malaysian Grand Prix might not be the only option.

Youth and Sports Minister Dr Mohammed Taufiq Johari has acknowledged an early-stage proposal for Malaysia to host Formula 1 periodically through a rotating arrangement with another country.

According to Bernama's report on his parliamentary remarks, the government is assessing whether the economic returns would justify the substantial costs of hosting F1 regularly.

A rotating arrangement could offer a different approach to the financial commitment. However, its feasibility, costs and potential commercial terms remain unconfirmed.

There's also another challenge: securing a place on Formula 1's crowded calendar.

Even if Malaysia decides to pursue a comeback, it would still need a suitable commercial agreement and a calendar slot.

As Carz previously reported, Prime Minister Anwar Ibrahim has already discussed the possibility of restoring the Malaysian GP with Formula 1 President and CEO Stefano Domenicali.

The government is assessing whether the economic benefits of hosting Formula 1 regularly would justify the financial commitment.

A committee's findings are expected to reach Cabinet in November 2026, although no final decision date has been confirmed.

The recent Bahrain GP has shown that Sepang can still attract major crowds and generate substantial economic activity.

But the next challenge is different: finding a hosting arrangement that makes financial sense over the long term.

After all, bringing Formula 1 back for one spectacular weekend is one thing. Making the numbers work year after year is an entirely different race.