The subject of potentially bringing Formula 1 racing back to the Sepang International Circuit (SIC), or at least the idea of it, has come up once again, but not everyone is keen on the thought being explored, given the associated high costs that would be involved.
Some quarters are saying that the multi-million ringgit price tag could outweigh any potential benefits of having the race return to Malaysia, considering the country’s current economic and social pressures, as The Sun reports.
Economist Geoffrey Williams said the government should not be made to foot the bill to finance the event using public funds. “If hosting F1 is viable from an economic and business perspective, it should be funded entirely by the private sector. If it is not viable from a private investment perspective, then government investment makes no sense either,” he told the publication.
He added that the country’s F1 journey, which ran for 19 years from 1999 to 2017, should serve as a past lesson rather than an aspiration for the future. “It was not sustainable and did not deliver the economic, social or multiplier effects often claimed by proponents of government involvement. If it had delivered benefits, it would still be running. It did not, hence it was discontinued,” he said.
The publication also spoke to a businessman, who wanted to remain anonymous, and he echoed the same concerns, saying that the potential cost was unnecessary and would be misaligned with national priorities.
“Spending US$70 million (about RM295 million) for a single Formula 1 race is totally unnecessary. Once setup and related costs are included, Malaysia could pay more than RM300 million for just one event,” he said.
He suggested the funds could instead be used on helping Malaysians in need of aid. “That RM300 million could subsidise 20,000 B40 families with RM15,000 each, helping them financially to own their first home. Supporting 20,000 families would directly benefit at least 100,000 Malaysians,” he said.
He questioned the need to return to F1 after its long involvement with the sport. “We have hosted F1 for 19 consecutive years. Isn’t that enough? With more countries vying to host, fees will only rise. The owners of F1 are savvy and business-minded, not generous. A wiser approach would be to use that money to improve the lives of Malaysians rather than compete for prestige,” he explained.
The talk about a potential return resurfaced after SIC CEO Azhan Shafriman Hanif said earlier this week that it was a mistake for Malaysia to stop hosting Formula 1 one races, prompting the discussion to take off once again. Following some reports indicating that the race was set to return, Azhan came out to state that it was not.
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If this event can really make money, private sectors with fight to organise it. No need gov involvement.
Using government funding for hosting F1 return is No No…SIC shld make effort to pull the sponsorships, I believe many big companies are willing to make their sponsorship. If our neighbor country like S’pore can manage it and bring in tourist from all over the world and boost their local tourism and bring in people to spend in Malaysia, why not in Malaysia? Even the The Land of Smile also fighting very hard to host the F! event, so what happen to Msia? Build a world class circuit but manage only small events locally? What a waste!
Let’s face it. Singapore F1, took away the crowds from sepang. Non point watching Singapore and two weeks later, sepang.
Janji Gaya dulu – Aiya tax payers money saja ma dan cronies-cronies tengah tunggu lama untuk makan pie ini dan goyang kaki sama tak perlu ubah apa-apa pun.
Before singapore grand prix, we had malaysian grand prix. it was a success since this is the only place to watch F1 in south east asia. but as we knows it, the tourist attraction has wane over the years and singapore grand prix had taken hold of the lead. perhaps we should forget about it for now. there is other use for this sic race track which singapore cant offer. MotoGP is one. perhaps we should develope our cub prix with schedule for foreign participation in this region. making sic race track event a premium event for key races. moreover, we sic could also be an active course for other races.
Stupid businessman comment. If following his logic, then please don’t spend money at all. All government revenue just divide and give to all Malaysian
with Singapore GP made us redundant..
We just don’t have the unique selling point to draw the spectators..
F1 and other such international events raise the awareness of the existence of our country to foreigners and westerners. People know Singapore and Thailand off-hand but as odd as it may seem, a lot of North Americans, South Americans, and Europeans don’t know where Malaysia is. You have to explain to them that we’re the country sandwiched in between Thailand and Singapore.
Without instant recognition we don’t get tourists. Without instant recognition we don’t get foreigners exploring to set up businesses here.
Those that only know how to harp about how money is better spent on the B40 don’t seem to understand why the B40 are in their predicament in the first place. How much handout is enough handout? Small-minded people like those should try convincing the B40 to try and toil like our foreign workers to extricate themselves from poverty and see for themselves, instead of always proposing to pour more money and give more free stuff to that demographic.
Having been a co-owner of a rural agro SME, let me just summarize it this way. Despite surrounded by thousands of able-bodied youths and paying decent wages, we still had to hire mainly foreign workers because we couldn’t find or retain local workers.
You needed experts to tell us that? Any fool would know to not spend that much to host an F1 race in Malaysia.
who’s fault? Tun M’s fault and he even wasted public’s money to build SIC.
why? because sepang is so bloody far from KL
19years wont be enough because it will disrupt someone’s deep pocket.
Tun Dr. M was the great patriot and a serious deep thinker in regards to making Malaysia great. He obviously loves cars, but he had the international mindset and realisation that this kind of event was a fantastic way to attract tourists (directly, or as it turned out even moreso indirectly, check the figures) as did the building of the Petronas twin towers – these acts and so much more were the sparks that Tun Dr. M made to ignite international attraction to Malaysia, I feel I do not need to expand further here.
Additionally, are you aware that hosting the F1 event in Malaysia using the F1 circuit here back then was not just about hosting a prestigious event?
SIC CEO Azhan Shafriman Hanif is absolutely right in thinking about vying to host F1 in Malaysia again. People are more affluent now to be able to afford tickets, national mindset has changed a lot and international tourism numbers are lower than it should be.
I would be available to discuss with Mr. Hanif and more particularly with Dato’ Seri Anwar Ibrahim as to how this issue would be addressed in such a way that could perhaps, hopefully, be successfully achieved as a government initiative and worth every sen.
hello , CEO Azhan Shafriman Hanif is that you ?
Perhaps it was a mistake to hire CEO Azhan Shafriman since he doed not have foresight and only care about himself
F1 is about branding for the country. The other industries related will greatly benefit from it and the overall economics. Short sighted ministers.