Malaysia's F1 hosting generated RM345mil spillover impact for MSMEs

KUALA LUMPUR: The Formula 1 (F1) Gulf Air Bahrain Grand Prix hosted in Malaysia generated an estimated RM345 million in economic benefits for local micro, small and medium enterprises (MSMEs), according to Entrepreneur Development and Cooperatives Minister Steven Sim. This demonstrates the potential for large-scale international sporting events to stimulate economic activity and provide opportunities for MSMEs to expand their market reach.

Sim believes that Malaysia can capitalize on the success of such events to support MSMEs by connecting them with larger industry players, event organizers, tourism operators, and local suppliers. This collaboration would help ensure that the economic benefits are distributed more evenly across small businesses.

The event drew 261,000 spectators, with nearly half estimated to be foreign tourists. These visitors are expected to spend significantly more than regular attendees, primarily due to longer stays and additional expenditures on accommodation, food, transportation, shopping, and leisure activities.

SME Corp Malaysia CEO Rizal Datuk Nainy highlighted that hosting large-scale international sporting events like F1, combined with MSME participation, can indirectly support the agency's long-term goals, especially in line with the MSME scaling-up agenda under the 13th Malaysia Plan. The Gulf Air Bahrain GP is set to be hosted in Malaysia from October 2 to 4, 2026, following an agreement between Formula 1, the Federation Internationale de l Automobile (FIA), and the governments of Malaysia and Bahrain.