Malaysia belanja RM70 juta untuk F1 Bahrain di Sepang, kata menteri

Malaysia allocated RM70 million to host the Formula 1 Bahrain Grand Prix at the International Sepang Circuit last month, following conflicts in the Middle East, signaling the return of Formula 1 to Malaysia for the first time since 2017, according to the government. This amount exceeded the RM40 million estimate provided by SIC Chief Executive Officer Azhan Shafriman Hanif in July for pre-race preparations.

In Parliament's written reply to Nazri Abu Hassan (PN-Merbok), Sports and Youth Minister Dr Taufiq Johari stated that the event is estimated to cost RM350 million, including ticket sales revenue and circuit-related preparations. Malaysia's portion of the budget, RM70 million, covered circuit operation and maintenance costs, while Bahrain covered the remaining expenses.

Prime Minister Anwar Ibrahim had previously stated in July that the government would only need to allocate RM16 million annually for circuit development and enhancement. Bahrain then estimated local preparations to cost RM40 million, with this expense to be shared between Malaysia and Bahrain. The ministry did not explain the discrepancy between the earlier estimate and the latest figure.

According to the ministry, the race generated an estimated RM950 million in economic activity, based on figures from Formula One Management. This included spending on hotels, tourism, air travel, transportation, food and beverage services, and other amenities. Taufiq also noted that the event created roughly 7,300 jobs, including 6,167 in the hospitality and service sector, 757 in race operations and infrastructure, and 376 in F1 teams, pit crews, and race officials.

However, he did not disclose the government's assessment of taxes, fines, and service income generated by the event. Taufiq said SIC and the appointed accounting firm still value the costs and economic benefits of the event. He said the assessment's findings would help the government decide whether Malaysia should host F1 in the future.

The Bahrain Grand Prix was moved to Sepang due to conflicts in the Middle East, marking Formula 1's return to Malaysia for the first time since 2017. Malaysia hosted the F1 Grand Prix from 1999 to 2017 before the race was canceled due to increased costs.