Just days ago, whispers from the Hungarian Grand Prix paddock suggested that Malaysia's Sepang International Circuit had emerged as a leading candidate for an unexpected return to the 2026 F1 calendar. 

The speculation didn't come out of nowhere. The ongoing conflict in the Middle East has thrown the F1 calendar into chaos. Races in Bahrain and Saudi Arabia were cancelled earlier this year. And with Qatar and Abu Dhabi now also at risk, F1 bosses are scrambling for alternatives.

Strategically located near Singapore and Kuala Lumpur International Airport, Sepang circuit makes a rapid turnaround feasible. 

It already meets FIA standards. And the track is still race-ready, having hosted MotoGP and other international events every year since F1 left.

The Ghost of 2017

Hosting F1 is not cheap. When Malaysia last hosted the race, the government was paying around RM300 million a year just in hosting fees. Maintaining the circuit to FIA standards costs another RM10 million annually. 

It also didn't help that ticket sales were declining year after year. In 2017, just 45,000+ spectators turned up at a track designed for 120,000. That was a far cry from the 90,000 who came in 2013. The government decided against renewing its hosting agreement after the 2017 race, citing escalating sanction fees and declining commercial returns.

In 2025, then-Youth and Sports Minister Hannah Yeoh told Parliament that Malaysia had no plans to bring F1 back. The cost was simply too high, she said — RM300 million that could be better spent on athlete development across 20 sports, benefiting 363 podium athletes and nearly 10,000 talent development athletes annually. 

She also stressed that any money spent on hosting fees could better be allocated to other sports, noting that contracts typically last three to five years, amounting to a commitment of RM900 million to RM1.5 billion.

The Investment Argument

Former Sepang International Circuit chief Razlan Razali, however, has a different view. He argues that F1 shouldn't be seen as a cost but as an investment. He points to the economic impact of tourism, global exposure, and putting Malaysia back on the map. "The F1 GP should not be viewed merely as an annual RM300 million hosting expense, but as a long-term investment with broad economic returns," he said.

And he has a point. The F1 brand has exploded in popularity, thanks in part to Netflix's Drive to Survive. Since the show premiered in 2019, Formula One reports a striking 63 percent increase in its worldwide fanbase. 

Fans are younger. More diverse. The share of female fans jumped from 10 percent to over 18 percent. And Gen Z and Millennials now make up approximately 60 percent of the fan base. The demand for tickets is higher than ever.

Meanwhile, Malaysia's tourism sector is bouncing back. Domestic tourism spending hit RM34 billion in the first quarter of 2026, a 15.8 percent year-on-year increase. International arrivals are forecast to surpass pre-pandemic levels by year-end. 

An F1 return could supercharge that recovery — but only if the government and private sector are willing to make it work.

The Reality Check

But let's not pretend this is simple. Realistically, with the financial challenges we've seen before, hosting F1 again — even as a one-off replacement — would be a gamble. A big one.

The current F1 calendar was originally scheduled as a 24-race championship. The cancellations of Bahrain and Saudi Arabia reduced it to 22 rounds. 

Adding Malaysia would bring the number back to 23 and satisfy broadcasting commitments. But a one-off race is not a long-term return. And a long-term return requires the kind of commitment that Hannah Yeoh warned against just last year.

There's also the question of whether the appetite is truly there. In 2017, even with ticket prices slashed by 82 percent, crowds were on the wane. 

Sepang was removed from the calendar after rising hosting costs and falling attendances made the race increasingly difficult to sustain. What's changed since then? The F1 brand has grown. But Malaysian fans — the ones who actually buy tickets — haven't exactly been clamouring for a return.

Will Malaysia be on the F1 calendar in 2026? Still unsure. But at least we're talking about it again. And for a country that once hosted one of the most exciting races on the calendar, that's already a win.

But let's be honest with ourselves. A return to F1 — even a temporary one — cannot be justified by nostalgia alone. The government is right to ask the hard questions. Is RM300 million worth a single race weekend? 

Can we guarantee that the grandstands won't be half-empty like they were in 2017? And if we do this, are we doing it as a one-off favour to F1, or are we laying the groundwork for something sustainable?

Razlan Razali has a point: F1 should be seen as an investment, not a cost. But an investment requires a return. And that return has to be measured not just in global exposure, but in ringgit and sen. Tourism spending is up. International arrivals are recovering. The F1 brand is hotter than ever.

Maybe — just maybe — those empty grandstands from 2017 won't be empty this time. Maybe we'll fill them. Maybe we'll finally see the economic return that always seemed just out of reach.