KUALA LUMPUR: Malaysia’s return to the Formula 1 calendar has generated an estimated RM950 million in economic impact, with Bahrain covering the hosting rights fees for the event at Sepang International Circuit (SIC).
The Youth and Sports Ministry said the Formula 1 Gulf Air Bahrain Grand Prix, held from Oct 2 to 4, drew about 261,000 spectators over the race weekend, including 103,000 on race day.
Based on data from Formula 1 Management (FOM), the event also reached an estimated global television audience of 827 million, the ministry said.
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“More than 97,000 tickets were sold, with over 50,000 international tourists and approximately 5,000 foreign workers entering Malaysia in conjunction with the event,” it said in a written parliamentary reply to Batang Sadong MP Rodiyah Sapiee on Tuesday.
The ministry said the arrival of international visitors had benefited the tourism, hospitality and aviation industries, as well as local small and medium enterprises (SMEs).
It added that the event had helped raise Malaysia’s profile as a destination for international sporting events and investment.
The latest race also differed financially from previous Malaysian Grand Prix editions, as Bahrain covered the hosting rights fees.
“The hosting model this time was different as the hosting rights costs were borne by Bahrain, allowing Malaysia to enjoy the economic benefits,” the ministry said.
However, it did not disclose the total expenditure incurred by the Malaysian government to facilitate the event.
SIC and an appointed consultancy firm are conducting a cost-benefit analysis to establish the event’s actual financial returns, including organisational expenses and the economic benefits generated.
“The findings of this cost-benefit analysis will form one of the bases for the government’s consideration in determining the suitability of Malaysia hosting Formula 1 again in the future,” the ministry said.
It added that the event had been organised through close cooperation between SIC and Bahrain International Circuit, with support from the government.
Malaysia last hosted a Formula 1 Grand Prix in 2017 before leaving the calendar amid rising hosting costs and concerns over declining returns.
The findings of the ongoing assessment are expected to help inform the government’s decision on whether to pursue another Formula 1 event in Malaysia.