F1 race at Malaysia’s Sepang generated nearly US$232 million: Sports ministry

KUALA LUMPUR: The Gulf Air Bahrain Grand Prix held at Malaysia’s Sepang International Circuit generated nearly RM950 million (US$232 million) in economic impact, the youth and sports ministry said on Tuesday (Oct 13). 

In a written parliamentary reply, Malaysian Youth and Sports Minister Taufiq Johari said the Oct 2 to Oct 4 event attracted about 261,000 spectators over three days, including an estimated 103,000 on race day. 

The turnout surpassed Sepang’s previous F1 record of 126,690 at the 2008 Malaysian Grand Prix, local media previously reported. 

The race earlier this month was also watched by 827 million viewers worldwide, Taufiq said, citing figures from the Formula 1 management. 

The Gulf Air Bahrain Grand Prix was relocated to Sepang in Malaysia as a one-off event after the original Bahrain race could not go ahead in April because of the Iran war and wider tensions in the Middle East. 

More than 97,000 tickets were sold while over 50,000 international tourists and about 5,000 foreign workers travelled to Malaysia for the event, Taufiq said. 

“The presence of overseas spectators also increased revenue for the tourism, hospitality and aviation sectors as well as local small and medium enterprises and strengthened Malaysia’s profile as a world-class sports and investment destination,” he said in the parliamentary reply, as quoted by Free Malaysia Today. 

Rodiyah Sapiee, the MP for Batang Sadong in Sarawak, had asked the ministry for the estimated economic benefits of hosting the race, compared with the costs borne by the government, and whether a cost-benefit assessment would be conducted. 

Taufiq said the Malaysian government had yet to determine whether hosting the event was worthwhile, with a cost-benefit assessment still under way. 

The Sepang International Circuit has appointed a consulting firm to examine the hosting costs and economic impact of the race, the minister said. 

“The findings of the cost-benefit assessment will serve as one of the considerations for the government in determining whether it is appropriate for Malaysia to consider hosting F1 again in future,” he said.

Local media previously reported that Bahrain bore the cost of staging the race, while Malaysia spent between RM10 million and RM16 million on preparations.

Malaysia Prime Minister Anwar Ibrahim said on Oct 4 that the government had held talks with Formula 1 about bringing the Malaysian Grand Prix back as a permanent fixture.

However, he acknowledged that a return would “take time”, given the crowded race calendar and existing contractual commitments to other host countries. 

The International Automobile Federation (FIA), Formula 1’s governing body, has said that Malaysia would need a business plan of at least five years covering the commercial, promotional and logistical requirements of hosting the race if it wants a permanent return. 

A Sepang International Circuit official previously estimated that securing a permanent spot on the Formula 1 calendar would cost Malaysia RM300 million a year, according to local media. 

Sepang hosted the Malaysian Grand Prix from 1999 to 2017 before dropping out because of rising costs and licensing fees. 

In July, Formula 1 confirmed Malaysia as the host of the Bahrain GP following an agreement between Formula 1, the FIA and the governments of Malaysia and Bahrain. 

The race drew a record crowd but was marred by complaints about transport and crowd management.

Fans complained of long queues for shuttle buses and poor crowd control, prompting some to walk several kilometres out of the area along main roads and motorways.