Malaysia spent RM70 million hosting the Formula 1 Bahrain Grand Prix at the Sepang International Circuit from October 2 to 4, generating an estimated RM950 million in economic activity.
Fantasy & Market Impact
- Ticket demand surged past 100,000 sales for the three-day event, marking a dramatic leap from the roughly 30,000 tickets sold during Malaysia’s previous F1 hosting stint in 2017.
- Total attendance reached approximately 261,000 visitors, heavily driving regional hospitality, tourism, and transportation revenues.
- The Sepang International Circuit and an appointed consulting firm are conducting a comprehensive cost-benefit analysis to determine future fiscal viability.
Federal and Local Costs Differ from Parliamentary Disclosures
The federal expenditure of RM70 million covered circuit maintenance and operating costs, while Bahrain absorbed the remainder of the total estimated RM350 million price tag, which included hosting and preparation fees, according to a written parliamentary reply detailed by Free Malaysia Today.
On July 27, Prime Minister Anwar Ibrahim said that the government would only require the RM16 million allocated annually for circuit upkeep and upgrades. Just a day later, Sepang International Circuit chief executive Azhan Shafriman Hanif estimated local preparations at RM40 million to be shared between Malaysia and Bahrain. The youth and sports ministry did not address the variance between those early figures and the final ledger.
The event returned Formula One to Sepang for the first time since 2017 following a scheduling shift caused by conflict in West Asia.
Grand Prix Creates 7,300 Jobs Across Multiple Sectors
The ministry reported that the grand prix created 7,300 job opportunities across multiple sectors, drawing on data provided by Formula One Management. NST Online said that these roles included 6,167 positions within businesses and services catering to visitors, 757 jobs in race operations and infrastructure, and 376 roles involving F1 teams, sponsors, and race operations.
| Metric | Previous Benchmark (2017) | 2026 Bahrain GP at Sepang |
|---|---|---|
| Total Visitors | Not Disclosed | 261,000 |
| Ticket Sales | ~30,000 | 100,000+ |
| Estimated Economic Impact | Not Disclosed | RM950 million |
| Government Expenditure | Not Disclosed | RM70 million |
The Star reported that the broader financial footprint approached RM950 million, encompassing hotels, tourism, international aviation, transport, food and beverage services, and the Litar Rasa Madani programme.
Despite the positive economic indicators, the ministry omitted figures regarding total tax collections, rental income, or administrative fees gathered by the state. Youth and Sports Minister Dr Mohammed Taufiq Johari explained that evaluations of direct costs require a comprehensive review based on ongoing assessments.
“The event also successfully generated an economic impact of close to RM950 mil for the country, across sectors including hotels, tourism, flights, transport, goods and services, food and beverages and circuit operations based on information obtained by Formula One Management,” the ministry said in a parliamentary reply reported by The Star.
Taufiq said the Sepang International Circuit and an appointed consulting firm are studying fiscal sustainability to help decide if Malaysia will host future F1 races.
“These findings will also be among the basis considered by the government when it comes to evaluating the fiscal sustainability, economic returns and suitability of Malaysia hosting Formula 1 races in the future,” the ministry said in coverage published by NST Online.
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