It was recently announced that Formula One (F1) will be returning to Malaysia, with the Sepang International Circuit (SIC) being selected to host the Bahrain Grand Prix. This would mark the return of the circuit hosting the racing event in nearly a decade. That being said, Malaysia is spending very little this time around to host the event. To return to the F1 calendar proper, the country will need to spend over RM300 million.
The figure comes as an estimate by SIC CEO Azhan Shafriman Hanif. Bernama cites him as saying that the rights to host F1 alone could cost between US$70 million (~RM286 million) and US$80 million (~RM327 million). Then there’s the local preparation costs to meet specifications for staging the race. Beyond the monetary element, there’s also just the availability of a slot in the championship calendar.
Azhan Shafriman also says that “the government’s current focus is not spending money on international events but on helping the people with economic challenges and the cost of living. Perhaps in the future, based on the data we obtain from hosting this event, it could serve as a starting point for our decision”. On that note, he says there’s the need to look at the possible overall returns, and that “most host countries generate returns of at least three times the amount they spend”. With that in mind, he estimates that Malaysia’s spending of RM300 million would potentially lead to a return of RM1 billion.
None of that applies to this current race, as Berita Harian cites Prime Minister Anwar Ibrahim as saying Malaysia has only spent the amount needed to maintain the SIC to meet the standards to host the race, which is “about RM16 million” annually. Separately, FMT cites Azhan Shafriman as saying that Malaysia’s share is limited to around RM40 million to bring the circuit up to F1 specifications. Most proceeds from the race in Sepang will go to Bahrain, as the country that paid the hosting fee.
(Source: Bernama, Berita Harian, FMT)
