31/08/2025

theSunday Special XV ON SUNDAY AUG 31, 2025 Formula One is a good thing for Malaysia

Drivers pose for a farewell group photo before the start of the last Malaysia Grand Prix race in 2017. – REUTERSPIC

NOW that the storm surrounding the pos sible return of Formula One has settled, it is time to talk about it pragmatically. I am a big fan of Formula One, ever since I saw Ayrton Senna in the red and white McLaren of the early 90s, I was hooked. I still am. But I know that Formula One is not for everyone. Just like MotoGP. Or cricket. There are billions of cricket fans around the world, but I can’t stand two minutes of it. I respect the sport and its fans, but it’s not for me. However, anything with an engine and wheels gets me excited. Racing is life and life is racing. So, I was quite excited about the prospect of Formula One returning to Malaysia. For those not in the know, our Sepang International Circuit is considered to be one of the best circuits in the world. It is highly regarded as a fast, technical circuit with plenty of overtaking opportunities. And it suits the size of the current crop of Formula One cars really well. The cars have grown significantly in size. For example, the cars from the 2007 season measured in at 4.6m in length and 1.8m in width. The 2025 cars are about 5.4m in length and over 2m in width. With that, there are very few circuits in the current calendar that can accommodate and offer a proper racing spectacle. Monaco for example has been demoted to being more of a parade race than an actual race. So has Canada and some of the other street circuits. Sepang International Circuit though has all the right ingredients to put on a good show. We just need the will, and the money, to pull it off. Now let’s look at the financial side of this. Apparently, we will need about RM300 mil lion to pull this off. I am not sure if this is what we need to pay per year or per con

tract, but I believe it is the for mer. I know this is a lot, especially for a country that still has a lot of debt to pay off and we are not exactly economically strong as yet. We are growing and doing better, but not quite there yet.

tors. Formula One cannot and should not be a one trick pony. It should not only be about the race. Malaysia Airlines and AirAsia can benefit hugely from this by offering tickets that fly into Kuala Lumpur for the race and package travel and accommodation into this. After a few days in the city, the ticket holders can then fly to other

tiple industries. It is also safe to say that Formula One has done wonders for the international image of Azerbaijan. Just like what our beloved Petronas Twin Towers has done for Malaysia. It put us on the map. As for urban development, because the Baku Grand Prix is a street circuit, it cata pulted the value of properties along the cir cuit. It also ensured the authorities invested into creating better infrastructure to sup port the race and the influx of tourists. Azerbaijan is just one example. Saudi Arabia is also tapping into Formula One to rebrand itself and so has Abu Dhabi. Have you ever wondered why Spain wants multi ple races in one year? Malaysia has benefited from Formula One before and we can do it again. Sure, we have Singapore and Thailand as competi tors now and that changes the game. But we have an ace in hand in the form of the spectacular Sepang International Circuit, a permanent circuit which the other countries do not have. I have personally travelled to Le Mans in France for the 24-hour race and witnessed what a well organised race can do. Families came out by the thousands to camp; there were all-night barbecue pits and hundreds of small vendors who clearly made a lot of money from the race. In fact, the tiny room with one single bed and a toilet with no door that I stayed in cost RM2,000 per night during race week. It otherwise costs RM250 per night. Malaysia can benefit hugely from Formula One, and the best thing is we have done it before. So, we know what to do and what not to do. “I’ll end by saying that Formula One is good for us, we just need to find the money and execute it properly.

However, this RM300 mil lion can be considered as invest ment into a business, and as with any business, return on investment takes time. With the recent storm that followed the reports of the possible return of the sport to Malaysia, there were a few points that were popular among ministers and social media troopers. One was about the money, RM300 mil lion which I have already agreed was a big investment. The sports minister said that it’s a big sum and it can be used to improve other things. Some social media users also said the same. But there can be repercussive busi nesses that stem from this. A ripple effect of sorts. That amount is paid to the licence hold ers to put Malaysia on the calendar. And for them to hold a race here. Then it all depends on the management of Sepang International Circuit to put on a good show. They can do this by organising concerts. They can work with local organisers to bring in big names, and this generates income for the companies and their ven dors. Smaller vendors can then benefit from this as well by setting up shop at the venue. As can security companies which can pro vide their services for the artists, the racers and the teams. Local F&B suppliers will also benefit from this by providing their serv ices. And then there are the tourism opera

WRITTEN BY KESHY DHILLON

local destinations such as Penang, Langkawi and Sabah. The ripple will be huge and beneficial for all. Did you know that local motorcycle rental companies make a huge sum every time MotoGP comes into town? And their main clientele are from Australia, New Zealand, England and our neighbouring countries. They usually fly in for the race, then go on a road trip around the country for a few days. Formula One can have that same effect as well. This is not just a theory, this has bene fited countries that are currently in the cal endar, like Azerbaijan. According to reports online, the Grand Prix in Baku has helped Azerbaijan in three key areas: economic growth, international branding and even urban development. Official reports indicate that direct and indirect revenue from hosting Formula One now stands at an estimated US$100 million per year for the tourism and hospitality sec tors. In fact, Mastercard reports that its trans actions in Baku during race weekend rise by as much as 77% compared with similar periods when the race is not in town. And then there are job creations. The race creates thousands of temporary jobs such as race organisation, hospitality and related services. The Baku Grand Prix gen erates jobs for 2,000 volunteers across mul