Malaysia Needs Over RM300 Mln For Permanent F1 Slot - SIC CEO  

SEPANG (Selangor, Malaysia), July 29 (Bernama) -- Malaysia would need to spend at least RM300 million annually if it hopes to secure a permanent place on the Formula 1 (F1) world championship calendar, according to Sepang International Circuit (SIC) Chief Executive Officer Azhan Shafriman Hanif.

He said the estimate covers Formula 1 hosting rights fees, currently estimated at between US$70 million and US$80 million (RM289 million to RM340 million), as well as local preparation costs required to meet the specifications for staging the prestigious race.

"My estimate is no less than RM300 million. That is the cost. But we also need to look at the overall returns. Based on the data I have seen, most host countries generate returns of at least three times the amount they spend.

"In other words, if we spend RM300 million, the potential return to the country could reach RM1 billion," he told a press conference at SIC on Wednesday.

He said there are two main requirements if Malaysia is to regain a permanent slot on the Formula 1 calendar: the ability to pay the hosting rights fees and the availability of a slot on the championship calendar.

"The government's current focus is not on spending money on international events but on helping the people with economic challenges and the cost of living. Perhaps in the future, based on the data we obtain from hosting this event, it could serve as a starting point for our decision.

"The other factor is the availability of a slot on the F1 calendar itself. If there is no slot, it will not happen. So the two main criteria are having the funds to pay the rights fees and having an available slot on the calendar," he said.

He said hosting the Formula 1 Gulf Air Bahrain Grand Prix in Malaysia from Oct 2 to 4 would be a one-off event, with the current priority being to ensure its successful organisation.

"For now, our focus is to deliver this event successfully. We are working together with Bahrain and Formula 1 on this one-off event. We will see if we can gain the confidence of the stakeholders, the government, Formula 1 and the Bahrain government. Perhaps then we can consider it again," he said.

Malaysia previously hosted the Malaysian Grand Prix at Sepang from 1999 to 2017 before the race was dropped from the Formula 1 calendar.
-- BERNAMA