PETALING JAYA: Major international motorsport events such as Formula One (F1) can stimulate Malaysia’s economy by attracting more tourists and encouraging spending beyond the race venue, says Malaysia Retailers Association president Datuk Andrew Lim.
He said the return of F1 would provide a boost to the hospitality, hotel, and food and beverage sectors while generating wider economic activity through tourist spending.
“Hospitality, hotels, and food and beverage businesses are expected to do well, and our members are excited about the event in October,” said Lim.
Malaysia will stage the F1 Gulf Air Bahrain Grand Prix from Oct 2-4 under a special arrangement at Sepang International Circuit (SIC).
During its 19-year run at SIC from 1999 to 2017, the Malaysian Grand Prix attracted international visitors, generating wider economic benefits and strengthening the nation’s profile as a motorsport and tourism destination.
“International events bring in more tourist footfall, creating more opportunities for visitors to spend and helping to stimulate the local economy,” he said.
He noted that the economic benefits would extend beyond Sepang, as many visitors would take the opportunity to explore other parts of the country.
“They may go up to Cameron Highlands or visit Penang or Melaka. They will take the opportunity while they are here to visit other parts of Malaysia,” he said.
Lim added that tourist spending creates a multiplier effect across the economy.
“Every ringgit they spend has a multiplier effect because what they spend becomes income for someone else, and that person will spend again.
“That is why such events are very good for the economy. Even in the old days when we had F1 in Sepang, it benefited the Malaysian economy,” he said.
He said the association welcomed the prospect of F1 returning to Sepang in the future.
Similarly, SME Association of Malaysia president Dr Chin Chee Seong said the economic benefits would extend well beyond the hotel industry to sectors including restaurants, tourism, event management, logistics, digital services, entertainment and local attractions.
He said international visitors would spend not only on accommodation but also on food, shopping, sightseeing and business activities, creating opportunities for small and medium enterprises (SMEs) supplying goods and services to larger businesses.
“This is a chance for SMEs to showcase the quality of Malaysian products and services to a global audience.
“If properly promoted, many visitors may return in the future as tourists, business partners or even investors,” he said.
Chin said the event should form part of a broader economic and tourism strategy to ensure its benefits translate into sustained business growth for local SMEs rather than providing only a short-term boost.
He said the government, tourism agencies and industry players should encourage visitors to extend their stay by offering attractive travel packages featuring different states, cultural experiences, eco-tourism, shopping and local cuisine.
“If strategically planned, F1 can become a catalyst for tourism growth, exports, investment and international business collaborations that continue well beyond the race weekend.
“This will spread the economic benefits beyond the Klang Valley,” he said.
Chin added that F1 also presents an opportunity for SMEs to raise their international profile, forge new partnerships and expand into overseas markets.
“They should take part in exhibitions, business networking, tourism programmes and supply chain opportunities linked to the event.
“However, success will depend on how well we coordinate our efforts. Government agencies, business associations and the private sector should work together to ensure Malaysian SMEs are actively involved rather than merely as spectators.
“If we maximise these opportunities, F1 will not only boost tourism but also strengthen Malaysia’s position as a preferred destination for investment, trade and business growth.”
