Sepang wants cheaper F1 tickets for Malaysians but Bahrain has the final say. The unusual financial arrangement behind F1’s one-off return to Malaysia.

Bahrain will have the final say on ticket prices and retain all ticketing revenue from the one-off 2026 Formula 1 race at Sepang, according to Sepang International Circuit chief executive Azhan Shafriman Hanif. SIC is attempting to negotiate a more affordable rate for Malaysian spectators, but it cannot determine the prices independently.

The commercial arrangement forms part of the agreement bringing Formula 1 back to the Sepang International Circuit for the event scheduled from 2 to 4 October. Although Bahrain is covering the hosting rights fee, the two parties will share the substantial operational costs required to prepare and stage the Grand Prix.

Bahrain to decide Sepang F1 ticket prices

Speaking during a media session at Sepang on 28 July, Azhan Shafriman Hanif explained that SIC lacked complete authority over ticketing because the full revenue would be returned to Bahrain. The circuit is nevertheless pushing for a special price aimed specifically at Malaysian supporters.

Azhan Shafriman Hanif suggested that this could potentially take the form of a MyKad ticket rate, although no such discount has yet been confirmed. He emphasised that Bahrain would make the final decision because it is responsible for paying Formula 1’s hosting rights fee.

The arrangement means Malaysian fans must wait for Bahrain’s approval before the complete ticket structure can be finalised. Any preferential local price therefore remains the subject of negotiations rather than a confirmed part of the event.

Sepang F1 operating costs estimated at RM40 million

While Bahrain is funding the rights fee, it will not carry every expense associated with holding the race. SIC and Bahrain are expected to share the costs of preparing the circuit, installing the necessary event infrastructure and staging the Grand Prix weekend.

Azhan Shafriman Hanif placed those operational costs at approximately RM40 million, equivalent to around S$12.7 million. That figure does not include the separate fee required to secure a place on the 2026 Formula 1 calendar.

The hosting rights alone are estimated at between US$70 million and US$80 million, with the lower end of that range equivalent to approximately S$90.5 million. Once the rights payment and operational expenditure are combined, the overall cost of delivering the event could exceed RM300 million.

Malaysia could receive more than RM1 billion in economic benefits

Despite the scale of the financial commitment, the Sepang chief believes the cost must be considered alongside the broader economic impact generated by Formula 1. Previous host-country reports have indicated that a Grand Prix can produce returns worth more than three times the money invested.

On that basis, Azhan Shafriman Hanif estimated that Malaysia could receive an economic impact exceeding RM1 billion. The benefits would be expected to extend beyond the circuit through tourism, accommodation, transport, sponsorship, festivals and other commercial activity connected to the race weekend.

Interest has already increased since the race was announced. SIC has received enquiries concerning sponsorship opportunities, festivals and related business activities, creating what Azhan Shafriman Hanif described as a welcome challenge for the organisers.

He expects the commercial impact to be substantially greater than during Malaysia’s previous period on the Formula 1 calendar. Under Liberty Media, the championship has expanded its international audience and created much stronger demand among spectators seeking to experience races in person.

Sepang avoids resurfacing ahead of October race

Formula 1 representatives have completed an initial inspection of the Sepang International Circuit and found no major obstacles that would prevent the venue from hosting the race. The track surface will not need to be replaced, reducing the amount of major work required during the limited preparation period.

Several upgrades will still be completed before the event, including work on the run-off areas and other parts of the circuit’s infrastructure. With only around two months available before the Formula 1 weekend, preparations are continuing around the clock to ensure that Sepang meets every requirement.

Long-term Formula 1 return remains uncertain

SIC is concentrating on delivering the one-off event before pursuing a permanent place on the calendar. Azhan Shafriman Hanif indicated that a successful Grand Prix could build confidence among the relevant stakeholders and potentially reopen the discussion about a longer-term Formula 1 return to Malaysia.

However, any future bid would depend on two important conditions: the Malaysian government would need to be prepared to finance the hosting rights, and Formula 1 would need to have an available calendar slot. Neither condition is currently guaranteed.

For now, SIC’s priority is to complete the required upgrades, secure the best possible ticketing arrangement for Malaysian fans and stage the October event successfully. If the race delivers the projected tourism and economic benefits, it could provide Malaysia with a stronger case for restoring Sepang as a regular Formula 1 destination.