SEPANG: The Bahrain government will determine Formula 1 ticket prices and keep ticket sale revenue for its one-off race at Sepang, says Sepang International Circuit (SIC) chief executive officer Azhan Shafriman Hanif.
He said SIC was still negotiating with Bahrain to secure more affordable ticket prices for Malaysians, but stressed that the final decision rests with Bahrain.
"All the ticket sales revenue will go back to Bahrain, so we don't have the absolute power to determine certain things," Azhan told reporters at a media session at Sepang on Tuesday (July 28).
"I will try my best to negotiate for a special price, maybe a MyKad price for Malaysians, but the final decision is with Bahrain because they are paying the rights fee," he added.
Azhan also clarified that while Bahrain is paying the Formula 1 hosting rights fee, SIC will share operational costs with Bahrain, including track preparation and event staging.
However, Azhan said the expenditure must be viewed alongside the wider economic returns expected from hosting Formula 1.
"Looking at the total picture, we have to look at the spillover effect. From reports of countries that host Formula 1, they can get more than three times the value," he said.
"This means Malaysia has the potential to gain more than RM1bil in economic impact," he added.
Azhan said Formula 1 representatives had conducted an initial inspection of the Sepang circuit and found no major issues preventing it from hosting the race.
He said the circuit would not require resurfacing, although several upgrades, including improvements to runoff areas and infrastructure, would be completed ahead of the event.
With only two months before the race, he said preparations were being carried out around the clock to meet Formula 1 requirements.
Azhan also expects the race to generate significantly greater economic benefits than when Malaysia previously hosted Formula 1, citing the sport's rapid global growth under Liberty Media.
"In the past, we had to work hard to sell tickets. Today, Formula 1 has built a huge global fan base and created a fear of missing out," he said.
"Since the announcement, we've received enquiries on sponsorships, festivals and commercial activities. It's a good problem to have," he added.
He said Formula 1's popularity today would translate into stronger tourism, business opportunities and economic spillover for Malaysia.
However, Azhan stressed that SIC remains focused on successfully delivering the one-off event before considering any long-term return of Formula 1 to Malaysia.
He said any future bid would depend on the government's willingness to fund hosting rights and the availability of a slot on the Formula 1 calendar.
"We'll focus on delivering this event first. If we gain the confidence of all stakeholders and produce something special, then perhaps we can look at the future," he said.
