“Effectively Free” — Anwar Says Malaysia Hosting F1 After Multi-Million Fee Waived

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Malaysia is hosting this year's Formula 1 Bahrain Grand Prix after its multi-million ringgit hosting fee was waived, said Prime Minister Datuk Seri Anwar Ibrahim

According to the New Straits Times, Anwar said Bahrain agreed to absorb the substantial upfront hosting fee payable to Formula 1 after deciding to relocate its Grand Prix to Malaysia due to regional security concerns.

As a result, Malaysia would only need to spend between RM10 million and RM16 million on minor maintenance works at the Sepang International Circuit.

"The initial payment of hundreds of millions of ringgit had already been paid by Bahrain. We do not have to pay it.

"We are effectively hosting it for free. If there is any expenditure, it is only to carry out minor repairs to the track, which is currently used for other racing events.

"I expect that to cost between RM10 million and RM16 million," he was quoted as saying yesterday, 27 July.

Anwar said the amount is significantly lower than what countries typically spend to host a Formula 1 race

"Other countries spend hundreds of millions, even up to RM1 billion, to organise Formula 1. We have only been asked to spend RM16 million, yet Malaysia will become the focus of the world.

"All the world's top drivers, the most advanced racing cars, and thousands of engineers will be coming to Sepang," he said.

He noted that Malaysia had previously spent hundreds of millions of ringgit to host Formula 1 races before the country's last Grand Prix at Sepang in 2017.

When first approached about hosting the one-off replacement race, Anwar said his initial response was to prioritise more pressing issues such as the cost of living, housing, and public welfare

However, after discussions with Bahrain, the hosting fee was eventually waived altogether.

He attributed the arrangement in part to the close ties between His Majesty Sultan Ibrahim, King of Malaysia, and Bahrain's King Hamad bin Isa Al Khalifa.

According to The Star, Anwar also said Malaysia was chosen over dozens of other countries because of its peace and stability, efficient administration, and strong infrastructure.

"The secret is that this country remains peaceful because of the strength of the Armed Forces, police, and all our security agencies.

"Secondly, it is because our administration is efficient," he said.

The Formula 1 Bahrain Grand Prix at Sepang will take place from 2 to 4 October, between the Azerbaijan Grand Prix and Singapore Grand Prix on the 2026 Formula 1 calendar.