Malaysia spent RM70mil on Bahrain F1 race, says ministry

 Youth and sports ministry says the event cost RM350 million overall, with Bahrain covering the remaining expenses.

The Bahrain Grand Prix was held at the Sepang International Circuit from Oct 2 to 4 following the conflict in West Asia, marking Formula 1’s return to Malaysia for the first time since 2017. (Bernama pic)

PETALING JAYA:

Malaysia spent RM70 million hosting the Bahrain Formula 1 Grand Prix at the Sepang International Circuit (SIC) last month, the government says.

The figure is higher than the RM40 million estimated by SIC chief executive Azhan Shafriman Hanif in July for local preparations ahead of the race.

In a written parliamentary reply to Nazri Abu Hassan (PN-Merbok), youth and sports minister Dr Taufiq Johari said the event, which ran from Oct 2 to 4, cost an estimated RM350 million, including hosting fees and preparations at the circuit.

He said Malaysia’s RM70 million share covered circuit maintenance and operating costs, while Bahrain bore the remaining expenses.

On July 27, Prime Minister Anwar Ibrahim said the government would only need to spend the RM16 million allocated annually for maintaining and upgrading the circuit.

A day later, Azhan estimated that local preparations would cost about RM40 million, with the expenses to be shared between Malaysia and Bahrain.

The ministry did not explain the discrepancy between the earlier estimates and the latest figure.

It said the race generated an estimated RM950 million in economic activity, citing figures from Formula One Management.

The benefits included spending on hotels, tourism, aviation, transport, food and beverage businesses and other services.

Taufiq also said the event created about 7,300 job opportunities, comprising 6,167 in businesses and services catering to visitors, 757 in race operations and infrastructure, and 376 involving F1 teams, sponsors and race operations.

However, he did not disclose how much the government collected in taxes, fees and rental income from the event.

Taufiq said SIC and an appointed consulting firm were still assessing the event’s costs and economic benefits.

He said the findings would help the government decide whether Malaysia should host future F1 races.

The Bahrain Grand Prix was moved to Sepang following the conflict in West Asia, marking Formula 1’s return to Malaysia for the first time since 2017.

Malaysia hosted the F1 Grand Prix from 1999 to 2017, before the race was dropped because of rising costs. - FMT