KUALA LUMPUR — The recent Gulf Air Formula 1 (F1) Bahrain Grand Prix (GP) at the Sepang International Circuit (SIC) is estimated to have generated a spillover impact of more than RM345 million for local micro, small and medium enterprises (MSMEs).
The event attracted 261,000 spectators, with nearly half expected to be foreign tourists, providing a significant boost to Malaysia’s economy, particularly the MSME sector.
Entrepreneur Development and Cooperatives Minister Datuk Seri Steven Sim Chee Keong said the positive impact demonstrated the important role of large-scale international sporting events in stimulating economic activity, particularly through increased tourism spending and demand for local products and services.
The F1 Bahrain GP had a significant impact on MSMEs, particularly those operating in the accommodation, food and beverage, retail, transportation, entertainment, tourism-related services and other supporting sectors.
Spectators attending the F1 event were projected to spend 2.17 times more than visitors to regular events, while foreign tourists typically spend more due to longer stays and expenditure on accommodation, food and beverages, transportation, shopping and recreational experiences.
Sim said Malaysia could leverage the success and spillover benefits of international sporting events such as F1 as a platform for MSMEs to gain wider market opportunities and access, as well as increase their participation in tourism, hospitality and event-related value chains.
He said efforts should include strengthening linkages between MSMEs and larger industry players, event organisers, tourism operators and local suppliers so that the economic benefits generated by large-scale events could reach more small businesses.
Meanwhile, SME Corp Malaysia chief executive officer Rizal Datuk Nainy said the broader benefits of hosting large-scale international sporting events such as F1 and MSME participation also indirectly supported SME Corp Malaysia’s long-term objectives, particularly the MSME scaling-up agenda under the 13th Malaysia Plan (RMK13).
