SEPANG — The Bahrain government will bear the multi-million-dollar Formula 1 hosting rights fee for the upcoming Formula 1 Gulf Air Bahrain Grand Prix, while Malaysia and Bahrain will jointly share approximately RM40 million in operational and event preparation costs.
Sepang International Circuit (SIC) Chief Executive Officer Azhan Shafriman Hanif confirmed that Bahrain will pay the Formula 1 rights fee—estimated to be between US$70 million and US$80 million (approximately RM280 million to RM327 million)—to Formula 1, significantly reducing Malaysia’s financial commitment to hosting the race from October 2-4.
“Regarding the hosting rights fees, I can confirm that it is being paid by Bahrain,” said Azhan during a media briefing at Sepang.
“There are certain costs which we have to share, particularly track preparations and local organising expenses. This will cost roughly RM40 million.”
Minimal Track Upgrades Required
Despite not hosting Formula 1 since 2017, Azhan said Sepang International Circuit remains in excellent condition after consistently maintaining its FIA Grade 1 certification.
Formula 1 officials have already completed an initial inspection and approved the circuit, with only minor improvements required before the race weekend.
“We do not need to resurface the track. We just have to make a small number of improvements, such as enhancements to the run-off areas,” he explained.
An official FIA inspection is expected in the coming weeks before final approval is granted.
To facilitate preparations, the circuit is expected to close for approximately two weeks before the event.
Ticket Prices Yet to Be Confirmed
Ticket pricing remains under the authority of the Bahrain government, as Bahrain retains all ticketing revenue from the event.
SIC is currently negotiating for a special ticket allocation and preferential pricing for Malaysian fans.
“I will try my best to negotiate for a special price, perhaps a MyKad price for Malaysians,” Azhan said.
“But the final decision rests with Bahrain because they are paying the rights fee.”
Petronas has also clarified that it will not be handling ticket sales for the event.
RM1 Billion Economic Potential
Although Malaysia is contributing to operational costs, SIC believes the economic returns could be substantial.
Azhan estimated the race could generate more than RM1 billion in economic impact through tourism, hospitality, transportation, retail spending and commercial activities.
“Countries hosting Formula 1 often see returns of more than three times their investment,” he said.
“Malaysia has the potential to generate over RM1 billion in economic impact.”
He added that enquiries from sponsors, festival organisers and commercial partners have surged since the race announcement.
“Formula 1 today has built an enormous global fanbase under Liberty Media. We’ve already received enquiries on sponsorships, festivals and commercial activities. It’s a good problem to have.”
Focus Remains on Delivering a Successful One-Off Event
While the unexpected return of Formula 1 has reignited excitement among Malaysian fans, SIC is not yet looking beyond this year’s race.
Instead, the immediate priority is to successfully stage the Bahrain Grand Prix at Sepang before discussing any long-term return of Formula 1 to Malaysia.
“We’ll focus on delivering this event first,” Azhan said.
“If we gain the confidence of all stakeholders and produce something special, then perhaps we can look at the future.”
Originally scheduled to be held in Bahrain, the race was relocated to Malaysia following the escalating conflict in the Middle East, allowing Formula 1 to maintain its 2026 calendar while bringing Grand Prix racing back to Sepang for the first time in nearly a decade.
