For someone who had the privilege of covering the race previously at Sepang, the announcement came out of the blue as no one expected it to make a return.
The comeback has created a buzz among Malaysians, especially the new generation of Formula 1 fans who did not have the chance to catch the event, which we last saw in 2017.
But this year’s race will differ from previous rounds during Malaysia’s extensive history as the host country from 1999 to 2017.
The 2026 edition will be a bizarre one-off race with Malaysia stepping in for Bahrain due to disruptions from the Middle East conflict in West Asia.
When Malaysia hosted the F1 between 1999 and 2017, the main point of contention was the annual licence fee paid to Formula One Management (FOM), which amounted to hundreds of millions of ringgits.
Now we will be paying RM0.
SIC chief executive officer Azhan Shafriman Hanif was quoted as saying that Bahrain’s FOM fees are estimated to be between US$70mil (RM298mil) to US$80mil (RM340mil), which Malaysia will be exempted from paying as it had already been paid by Bahrain.
These whopping FOM fees, coupled with fluctuating attendance and broadcast rights value, were repeatedly cited by the government as reasons to end the contract in 2017.
Malaysia is effectively getting the global F1 spotlight this year without the single largest cost item that made the race politically and financially contentious in the past.
However, Malaysia will still have to fork out an estimated RM40 mil to prepare SIC for the return of Formula 1.
The potential economic impact though will be substantial, with tourism receipts from the race anticipated.
Hotel bookings, particularly around the Kuala Lumpur International Airport, have already sold out and each tourist attending the race weekend is expected to contribute significantly to the local economy.
SIC boasts a seating capacity of 130,000 people, though the venue can accommodate over 170,000 visitors across its extended areas and hospitality zones.
It has to be reminded that proceeds from ticket sales will go to Bahrain management as it’s their event after all.
Sepang also boasts an advantage many other circuits just do not have in that the track is located just next to the airport.
But from a cost-benefit angle, the biggest advantage for Malaysia as a host country for the prestigious sport will be the global TV exposure and tourist inflow, all achieved without bearing the multi-hundred-million-ringgit licence fee that once made the sport a hard sell to taxpayers.
But more important than a nostalgic return to Sepang, this provides the chance for Malaysia to position itself as a stable Southeast Asian base for global sporting events.
So let’s welcome the circus back – even for a one-time stop.
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