Bahrain F1 race in Malaysia delivers $108.1 million windfall to local micro SMEs
Those who attended the race were projected to have spent 2.17 times more than ordinary events.
KUALA LUMPUR – The Formula 1 Bahrain Grand Prix at Sepang International Circuit provided a significant economic boost for local micro, small and medium-sized enterprises (MSMEs), with over RM345 million (S$108.1 million) in windfall effects, according to Malaysia’s Entrepreneur Development and Cooperatives Minister Steven Sim. Almost half of the 261,000 spectators were foreign tourists, contributing to a surge in tourism expenditure and demand for local goods and services.
Sim highlighted that the impact was particularly notable for businesses in hospitality, food and beverage, retail, transport, entertainment, tourism-related services, and support industries. Attendees were expected to spend 2.17 times more than those at regular events, with foreign tourists typically spending more due to longer stays and greater expenditure on accommodation, food, beverages, transport, shopping, and recreational activities.
Sim emphasized that the success of such international sporting events presents opportunities for SMEs to access wider markets and stressed the importance of strengthening alliances with larger industry players, organizers, tourism operators, and local suppliers to ensure that the economic benefits are shared among more small businesses.
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