PETALING JAYA: The return of Formula 1 (F1) to Malaysian soil next month could contribute up to RM1.3bil in total economic output, according to Hong Leong Investment Bank (HLIB) Research.
The research house views the event as a net positive for the economy, potentially generating RM1.1bil to RM1.3bil, while providing an additional boost to tourism-related services and supporting the current account surplus.
This projection is based on its estimate of average F1 attendee spending at around RM8,879 per tourist, factoring in that the sport’s typically affluent audience, which tends to spend 1.5 to 3.6 times more than the average visitor.
HLIB Research said F1’s strong global popularity, coupled with favourable timing, is likely to drive robust turnout, while Malaysia’s relatively low financial burden strengthens the case for hosting.
From Oct 2 to Oct 4, 2026, the Sepang International Circuit (SIC) will host the rescheduled Bahrain Grand Prix as a one-off replacement due to geopolitical tensions in West Asia, marking F1’s first return to Malaysia since 2017.
Unlike Malaysia’s 1999 to 2017 tenure as a full-season host, the brokerage said this iteration is likely to offer better economics.
Bahrain will absorb the F1 rights fee of RM285mil to RM326mil, while Malaysia’s costs are limited to an estimated RM40mil in local preparations, according to SIC chief executive Azhan Shafriman.
“Under the current arrangement, Bahrain will receive all ticket sales revenue while Malaysia will benefit from tourism spending spillover effects,” it said.
Malaysia previously stopped hosting the Malaysian Grand Prix after 2017 due to rising costs and declining interest and ticket sales.
However, the sport’s global popularity has surged since then, particularly after Liberty Media reinvented F1 into a global media and entertainment brand after acquiring it in 2017.
HLIB Research said global attendance rose from around 4.2 million in 2019 to a record 6.7 million in 2025, with all 11 races in the first half of 2026 sold out.
The upcoming race will also coincide with China’s National Day Golden Week and Visit Malaysia 2026, increasing the likelihood of higher-spending visitors, it said, highlighting that Chinese tourists spent an average of RM6,291 per capita in 2024, compared with RM3,753 for other nationalities.
Additionally, Malaysia is expected benefit as the only Asean country besides Singapore hosting an F1 race, reducing the risk of attendance being split across multiple regional venues.
Moreover, HLIB Research added that hosting the Bahrain Grand Prix should bring additional support to tourism-related industries, contributing to services trade and the current account surplus.
“Notably, travel receipts stand as the second-largest contributor to the current account surplus after goods,” it noted.
As tourism-related sectors constitute a relatively large share of formal employment at around 30%, HLIB Research noted that spillover effects from the race could support jobs and household income, despite wage levels in retail and food and beverage segments remaining comparatively low.
“This positive momentum could, in turn, support improved service quality and worker retention in these customer-facing sectors, reinforcing Malaysia’s appeal as a tourism destination and encouraging further visitor spending,” it said.
