KUALA LUMPUR: Nearly RM950mil in total monetary value was injected into the economy from The Formula 1 Grand Prix held in Sepang earlier this month, says the Youth and Sports Ministry.
The ministry said the Oct 2 to 4 event at the Sepang International Circuit (SIC) attracted approximately 261,000 spectators over the race weekend, including an estimated 103,000 on race day.
“Based on information from Formula 1 Management (FOM), the event generated an economic impact of nearly RM950mil. The championship was broadcast worldwide and was watched by 827 million viewers.
“More than 97,000 tickets were sold, with over 50,000 international tourists and approximately 5,000 foreign workers arriving in Malaysia in conjunction with the race” it said in a written parliamentary reply on Wednesday (Oct 13).
The ministry added that the influx of international visitors benefited the tourism, hospitality, aviation and local small and medium enterprise sectors, while strengthening Malaysia's profile as an international sporting and investment destination,” it said.
The ministry added that the hosting arrangement differed from previous editions, as Bahrain covered the hosting rights fees through its collaboration with SIC.
However, the ministry did not disclose the total costs borne by the Malaysian Government.
It said SIC and an appointed consulting firm were conducting a cost-benefit assessment following the conclusion of the race.
The assessment would examine the detailed costs of organising the event against the economic benefits generated.
"The findings of this cost-benefit assessment will serve as one of the considerations in determining whether Malaysia should consider hosting Formula 1 again in the future," it said.
The ministry was responding to Rodiyah Sapiee (GPS-Batang Sadong), who asked about the economic benefits of the race compared with government expenditure and whether a cost-benefit study would guide any decision to resume regular F1 hosting.
