Can Malaysia turn ‘free’ F1 race into tourism win?
Malaysia should try packaging race tickets with cultural and dining experiences to showcase the country as a choice destination for tourists, observers say.
Red Bull’s Max Verstappen attempts to overtake Mercedes’ Lewis Hamilton during the Formula One Malaysian Grand Prix at the Sepang International Circuit on Oct 1, 2017. (File photo: Reuters/Lai Seng Sin)
New: You can now listen to articles.
This audio is generated by an AI tool.
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
KUALA LUMPUR: Since 1999, Malaysian Kevin Lee has watched almost every Formula One race at least on television, even convincing his wife to stay home on their wedding anniversary in 2016 so he could watch the season finale held in Abu Dhabi.
So when it was confirmed on Sunday (Jul 26) that a Grand Prix will be held at his home country’s Sepang circuit – for the first time in nearly a decade – the 37-year-old was determined to get tickets to the Oct 4 event.
The Malaysia event will replace the Bahrain race that was cancelled due to the Middle East conflict which broke out in February.
“I’m very excited. Many Malaysians wouldn’t think that they would see the ‘new Formula One’ (era) make it to Sepang,” Lee told CNA.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
“So much has changed in the sport over the last couple of years … and more people follow it now. So I think it’s a very different vibe compared to when the race was last held in Sepang in 2017.”
Lee was referring to the Netflix documentary series “Drive to Survive”, which premiered in 2019 and covers an entire Formula One season. Attracting millions of viewers, it has drummed up interest in and dramatised what was once considered a relatively niche motorsport.
Lee, who works in performance marketing, said he expects a full house at Sepang as interest in the sport has grown in recent years, and that the event will give Malaysia an economic boost through dining, entertainment and merchandise spending during the race weekend. Sepang can hold 130,000 spectators.
He has already heard of hotels near the circuit being booked out and brands starting to capitalise on the fanfare by posting online mockups of Formula One cars in their livery.
“I think the event would (have economic benefits), especially since Malaysia is not footing the bill,” he said, urging Malaysia to improve the facilities at Sepang circuit in time for the race and ensure a smooth ticketing experience for everyone.
“In order to really maximise this golden opportunity that we’ve been given, we Malaysians need to put Malaysian hospitality at the forefront and be as welcoming as possible, and overall make it a great experience.”
CNA has reached out to the Malaysian Association of Hotels and the Malaysian Association of Tour and Travel Agents for comment.
AN UNLIKELY RETURN
Speculation swirled last week that Malaysia could host a race in October on behalf of Bahrain after the Gulf state’s race was called off earlier this season.
Malaysia reportedly emerged as the frontrunner to host the replacement event as its Sepang track retained motorsport governing body Federation Internationale de l’Automobile (FIA)’s Grade 1 status needed to host a Formula One race.
Malaysia’s proximity to Singapore also made it logistically ideal given the following race would be held the next weekend in the city-state.
On Sunday, the Liberty Media-owned sport said in a statement that the race at the circuit near Kuala Lumpur International Airport (KLIA) would officially be designated the “Gulf Air Bahrain Grand Prix in Malaysia”.
That day, Malaysia Prime Minister Anwar Ibrahim said in a social media post that the collaboration reflected the “enduring friendship” between Malaysia and Bahrain, while reaffirming Malaysia’s capability to host major international events.
Malaysia’s Ministry of Youth and Sports added in a statement that the race is expected to generate “significant” economic benefits through tourism, investment and sports-related economic activities.
Malaysia stopped hosting Formula One races after 2017 due to rising costs and dwindling returns, and in 2025, then-youth and sports minister Hannah Yeoh said the country had no plans to bring back the event due to the high costs involved and the number of races already in the region.
Yeoh had estimated that hosting fees payable to Liberty Media were around RM300 million (US$73.3 million) annually, with contracts typically lasting three years to five years and a total financial commitment of between RM900 million and RM1.5 billion.
On Monday, Anwar confirmed that Bahrain had agreed to absorb the substantial registration and hosting fees, with Malaysia needing to spend only up to RM16 million on minor track repairs at Sepang.
“So, we are effectively hosting it for free; imagine that,” he said in a speech in Negeri Sembilan, adding that Malaysia will become the “focus of the world”.
Analysts told CNA that Malaysia is expected to pull in around RM500 million in tourism revenue, citing official figures from the last race it hosted in 2017 that attracted 200,000 international visitors.
“A race weekend fills hotels across the Klang Valley, spikes demand for restaurants and transport, and normally lifts spending for three to four days,” said Mohd Hafiz Hanafiah, a professor of tourism economics at Universiti Teknologi MARA (UiTM) Selangor.
“I believe Malaysia will get visitor spending across its airlines, hotels, food and beverage, transportation and retail. This is a genuinely valuable tourism-related stream with low risk as there is no need to pay hosting fees.”
But given that Sepang sits well outside the main tourist hub of Kuala Lumpur – about a 1.5-hour drive from the city centre – analysts urged organisers to package tickets with accommodation, shopping, cultural attractions and domestic tours to extend visitors’ stays, with benefits shared across surrounding communities.
A well-rounded experience that generates significant interest could put Malaysia in contention for a permanent spot on the Formula One calendar again, observers said, and even if this does not happen, international fans would be enticed to return to Malaysia for a holiday.
Jake Abdullah, who runs marketing agency Malaysian Dynamic Media, said he believes international visitors who have not been to Malaysia will “come for the cars and leave talking about the food”.
“My honest belief is that a serious percentage of them will come back, and next time they bring people and they stay longer,” he told CNA.
“That is the part I would want Tourism Malaysia obsessed with. Formula One is not just an event. For three days it is the cheapest and most powerful marketing tool this country has ever been handed, and somebody else paid for the media buy.”
INCREASING INTEREST, BUT ROADBLOCKS AHEAD
There are already signs of increasing interest in the race.
On Sunday, a post on the Instagram page bojomalaysia, which gives suggestions on dining and activities in Malaysia, talked about a queue already forming for tickets when official details have not been released. The post attracted more than 7,000 “likes” and 5,000 shares, even as commenters were sceptical about the content.
Most of the chatter on Formula One social media groups in Singapore and Malaysia that CNA monitored focused on people rushing to secure accommodation near Sepang even before tickets go on sale.
Checks by CNA on the websites of three hotels close to the Sepang circuit show they are fully booked from Oct 1 to Oct 5. A hotel located near KLIA that was available on those dates quoted almost RM1,000 for a single room per night, four times its normal rate.
“What worries me is pricing. Triple your rates for four nights and we win the weekend but lose the reputation. A guest who feels cheated tells the internet, and the internet is not forgiving,” Jake said.
“Package it, please. Anyone can raise a room rate. Almost nobody will bundle three nights with transport, food and something local worth remembering, then sell it to a fan who has never set foot here. That is where the margin is.”
Hafiz agreed, encouraging tourism operators to bundle Kuala Lumpur city stays with add-ons like cultural experiences in heritage-rich Melaka.
“This is where the money actually compounds. Showcase the Malaysia Truly Asia slogan and a chance to promote Visit Malaysia 2026,” he said.
“The circuit sits well outside Kuala Lumpur, so unless visitors are deliberately routed into the city and beyond, a lot of the spend stays trapped in a small radius around the track for a few days and then stops.”
While shuttle buses were provided from Kuala Lumpur to the Sepang circuit during the 2017 race, some spectators complained about massive traffic jams, and Jake hopes connectivity to and from the capital can be improved.
This also comes as the Putrajaya leg of the Tour De Langkawi – which will take cyclists to the administrative capital between Kuala Lumpur and Sepang – and the Standard Chartered Kuala Lumpur Marathon will be held on Oct 4, the same day as the race.
“I want to see transport that moves, because nobody enjoys an RM7,500 weekend that ends in a two-hour crawl,” Jake said.
Jake estimated that Malaysia could pull in between RM450 million to RM600 million in visitor spending from the three-day event, but said this would “depend on ticket pricing, whether people overseas can book in time, hotel capacity, and how painful the drive to the circuit is”.
While Anwar has hinted at more affordable pricing for Malaysians, Sepang International Circuit chief executive Azhan Shafriman Hanif told local news agency Bernama on Tuesday that Bahrain will decide on ticket prices and collect all proceeds.
For the 2017 event at Sepang, ticket prices ranged from RM58.68 for a Hillstand K2 ticket to RM613.68 for a Main Grandstand ticket, making it one of the most affordable Formula One races in the world, local media reported then.
When asked what would be acceptable ticket prices for the 2026 event, Malaysian Formula One fan Lee Seng Foo told CNA “the cheaper the better”, though he admitted he was willing to “fork out a little”.
“Because it could really be a one-off and we might not get another Formula One race at Sepang in my lifetime,” said the 38-year-old, who works in sports media.
Online, CNA has seen various accounts of fans who are already attending the Singapore Grand Prix changing flight bookings and extending their trips to squeeze in the Malaysia race and capitalise on the “double header”.
Ultimately, Jake urged the Malaysian federal government to measure the economic impact of this year’s event and publish the figure, calling it “the best pitch we will ever make” for Sepang to return as a permanent fixture in Formula One.
“If it means paying that RM300 million again, I am happy to have that conversation. I want us to have it about value instead of price. October tells us which one we are really looking at,” he added.
“LITMUS TEST” FOR PERMANENT F1 RETURN
The October event is a “litmus test” for the future of Formula One in Malaysia, said UiTM’s Hafiz.
“The whole point of a free one-off is to gather evidence before deciding on a permanent deal. I see this as our advantage,” he said.
Hans Westerbeek, professor of international sport business at Victoria University in Australia, however warned that it will be “difficult” to maximise the economic impact of the event with such a short lead time.
Despite that, he expressed confidence that stakeholders like national oil company Petronas, which sponsors the Mercedes-AMG Formula One team, were keen to bring back the Malaysia race for the long term.
“Everybody knows that Netflix shows like ‘Drive to Survive’ have increasingly made this event super popular amongst target markets that previously weren’t interested,” Westerbeek told CNA’s Asia Now.
“And so Malaysia in a way can revamp the 2017 era and almost start again, but now with renewed knowledge, interest and obviously short-term investment in order to reap long-term benefits.”
Lee Seng Foo, the Malaysian Formula One fan, has fond memories of attending the Sepang Grand Prix in 2012, recalling it as a “chaotic rainy race” that he really enjoyed.
“I think I speak for everyone when asking for the full Sepang experience of having a dry and wet race happen. But not too much rain until it gets red flagged,” he said.
He hopes both drivers and fans get to experience a “good and fun race”, which could encourage relevant parties to sit together and have a serious discussion about Sepang’s permanent return to Formula One.
“A one-off return could reignite local interest and if it’s a success, it can potentially pave the way for Liberty Media and the Malaysian government to make Sepang a permanent fixture on the Formula One calendar again,” he said.
Source: CNA/hz(ao)
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
