RM345mil economic boost for local MSMEs at F1 race

The recent Formula 1 Bahrain Grand Prix in Malaysia resulted in an estimated RM345 million in economic benefits for local micro, small, and medium enterprises (MSMEs), according to the government. Officially known as the Sepang International Circuit, the venue hosted the Malaysian Grand Prix from 1999 to 2017 before it was dropped from the calendar due to escalating hosting costs and licensing fees.

Steven Sim, minister for entrepreneur development and cooperatives, revealed that the three-day motorsport event attracted a record-breaking 261,000 spectators, nearly half of whom were international tourists. The minister emphasized that the event showcased the potential of large-scale international sporting competitions in driving economic activity through heightened tourism spending and a surge in demand for local goods and services.

Sim stated, "Malaysia can leverage international sporting events such as F1 to enable MSMEs to tap wider market opportunities and strengthen their participation in tourism." He further noted that spectators at the event spent 2.17 times more than those attending regular events, attributing this to extended stays by foreign tourists.

Their expenditures covered accommodation, food and beverages, transportation, shopping, and leisure activities. Sim highlighted the importance of fostering connections between MSMEs, major industry players, event organizers, and local suppliers to ensure that economic benefits reach smaller businesses.