While the immediate economic excitement surrounding the F1 return is palpable, some observers remain cautious about the long-term benefits of hosting a one-off race. Critics point to the historical challenges that led to Malaysia's departure from the F1 calendar in 2017, specifically the astronomical hosting fees and high licensing costs that often outweighed the direct financial returns. There is a concern that without a long-term commitment or a sustainable business model, the temporary boost to retail and F&B SMEs may not justify the significant public resources required to organize such a massive event.
There is also the risk of market displacement, where the sudden surge in demand favors large, international franchises over local SMEs. If the event infrastructure is not carefully managed, local businesses may struggle to compete with established global brands that have the resources to dominate the prime exhibition and retail spaces. Furthermore, the reliance on a substitute hosting arrangement—due to conflicts elsewhere—highlights the unpredictable nature of the event, making it difficult for local businesses to plan for sustainable growth based on a race that may not return in future years.
Finally, skeptics argue that the focus on mega-events can distract from the structural challenges facing Malaysian SMEs, such as the need for consistent digital transformation and sustainable supply chain management. While a race weekend provides a temporary spike in revenue, it does not address the underlying issues of fair competition and market stability. For many small traders, the real challenge lies in building a stable customer base throughout the year, rather than relying on the fleeting, high-pressure environment of an international sporting event.