KUALA LUMPUR: Local micro, small and medium enterprises (MSME) reaped over RM345mil in economic spillover effects of the Bahrain Gulf Air Formula 1 (F1) Grand Prix (GP) at Sepang International Circuit.
Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong added that almost half of the 261,000 spectators were foreign tourists.
"The impact reflects the important role of large-scale international sporting events in stimulating economic activities, especially through the rise in tourism expenditure and demand for local goods and services.
"The Bahrain F1 GP in Malaysia has had a very drastic impact on the SMEs, especially those in the hospitality, food and beverage, retail, transport, entertainment, tourism-related services and support industries,” he said in a statement on Thursday (Oct 8).
Those who attended the F1 race were projected to have spent 2.17 times more than at ordinary events, he said, adding that foreign tourists usually spend more due to longer stays and expenditure on accommodation, food and beverages, transport, shopping and recreational activities.
Based on the success and economic spillover effect, Malaysia could benefit from international sporting events such as the G1 as a platform for SMEs to have wider opportunities and market access.
"This effort includes strengthening ties between SMEs and bigger industry players, event organisers, tourism operators and local suppliers so that the economic benefits generated by such large-scale events can be enjoyed by more small businesses,” he said. — Bernama
