The Italian rider lost his life in an accident on the second lap of last year's race, held on October 23.
The 24-year-old had been fighting for fourth when he lost the front of his bike and slid across the circuit, into the path of oncoming riders.
He was taken to the circuit's medical centre, but did not survive the injuries he sustained.
In tribute to the Italian, who had established himself as one of the most exciting new stars in MotoGP in what was his second year at the top level, a bronze plaque will be installed at Turn 11.
Sepang's CEO Razlan Razali said riders and team officials would gather at the corner on Thursday in remembrance of the Italian.
"A bronze plaque will be installed at turn 11 in remembrance of Simoncelli," Razlan told AFP.
He added that a new 'Marco Simoncelli rookie of the year' trophy would be unveiled on the Saturday of the Malaysian Grand Prix, and would then be awarded to the best MotoGP newcomer at the Valencia season finale.
Simoncelli had taken his best grand prix finish of second just one week before losing his life at Sepang.
- Marco Simoncelli