F1's RM950m impact puts Malaysia's possible return in the fast lane

The Formula One Gulf Air Bahrain Grand Prix held at the Sepang International Circuit (SIC) from Oct 2 to 4 generated an estimated RM950 million in economic impact for Malaysia, said Youth and Sports Minister Dr Taufiq Johari.

The figure comes amid renewed interest in bringing F1 racing back to Malaysia.

In a written parliamentary reply to Batang Sadong MP Rodiyah Sapiee, Taufiq said the event attracted about 261,000 fans over the...

The Formula One Gulf Air Bahrain Grand Prix held at the Sepang International Circuit (SIC) from Oct 2 to 4 generated an estimated RM950 million in economic impact for Malaysia, said Youth and Sports Minister Dr Taufiq Johari.

The figure comes amid renewed interest in bringing F1 racing back to Malaysia.

In a written parliamentary reply to Batang Sadong MP Rodiyah Sapiee, Taufiq said the event attracted about 261,000 fans over the race weekend, including an estimated 103,000 on race day.

“According to information from Formula 1 Management, the event generated an economic impact of nearly RM950 million for the country.

“It also benefited Malaysia in terms of international promotion and visibility, with the race broadcast worldwide and watched by 827 million viewers.

“Based on the latest data from the event’s ticket sales report, more than 97,000 tickets were estimated to have been sold,” he said.

Taufiq (below) added that the event drew more than 50,000 international tourists and about 5,000 foreign workers to Malaysia.

Rodiyah had asked the minister to estimate the event’s economic benefits against the costs borne by the government, and whether Putrajaya would conduct a cost-benefit analysis before deciding on future F1 races in the country.

In his reply, Taufiq said this year’s event differed from previous editions because Bahrain bore the cost of the hosting rights, allowing Malaysia to reap the economic benefits.

The Sungai Petani MP added that SIC had engaged a consultancy firm to conduct a cost-benefit analysis, with the findings to be one of the factors in the government’s decision on whether to host F1 again.

Why it previously ended

Malaysia first hosted the F1 championship in 1999, but ended its run in 2017 amid high hosting costs and declining returns.

In 2016, then youth and sports minister Khairy Jamaluddin said F1 ticket sales and television viewership were declining.

He also noted that foreign spectators had other options, including the Singapore, Chinese and Bahrain rounds of the championship.

Last year, SIC chief executive officer Azhan Shafriman Hanif reportedly said bringing F1 back to Malaysia would cost about RM300 million annually.