F1 Bahrain GP in Sepang generated RM950 mil in total monetary value for Malaysia – youth and sports ministry

Last week, it was reported that the Formula 1 Gulf Air Bahrain Grand Prix in Sepang had brought a positive impact to Malaysian micro, small and medium enterprises, with the SMEs having reaped over RM345 million in economic spillover effects from the race.

Now, those numbers have been expanded on a larger canvas, The Star reports, with the youth and sports ministry saying that nearly RM950 million in total monetary value was injected into the Malaysian economy from the event, which attracted approximately 261,000 spectators over the race weekend, including an estimated 103,000 on race day itself.

“Based on information from Formula 1 management (FOM), the event, which was broadcast worldwide and was watched by 827 million viewers, generated an economic impact of nearly RM950 million. More than 97,000 tickets were sold, with over 50,000 international tourists and approximately 5,000 foreign workers arriving in Malaysia in conjunction with the race,” the ministry said in a written parliamentary reply issued today.

The ministry said this in response to questions posed by Rodiyah Sapiee (GPS-Batang Sadong), who asked about the economic benefits of the race compared with government expenditure and whether a cost-benefit study would guide any decision to resume regular F1 hosting.

It added that the influx of international visitors benefited the tourism, hospitality, aviation and local small and medium enterprise sectors, while strengthening Malaysia’s profile as an international sporting and investment destination.

From a cost perspective, the ministry said that the hosting arrangement differed from previous editions, as Bahrain covered the hosting rights fees through its collaboration with SIC. However, it did not disclose the total costs borne by the Malaysian government.

With regards to a possible return to the F1 calendar, the ministry said that Sepang International Circuit (SIC) and an appointed consulting firm were conducting a cost-benefit assessment following the conclusion of the race. The assessment will examine the detailed costs of organising the event against the economic benefits generated.

“The findings of this cost-benefit assessment will serve as one of the considerations in determining whether Malaysia should consider hosting Formula 1 again in the future,” it said. Earlier, Tengku Datuk Seri Zafrul Abdul Aziz said that bringing F1 back requires more than just the race, with the need to ensure the economic benefits are worth the hosting costs, and to establish whether Malaysia can make F1 profitable enough.

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