“I’ve always believed that you should never, ever give up and you should always keep fighting even when there’s only a slightest chance.”
– Michael Schumacher, Formula One legend
SO, it has been confirmed. The Sepang International Circuit (SIC) will host the Formula 1 Gulf Air Bahrain Grand Prix from Oct. 2-4 this year. It will be the first F1 race at Sepang since 2017, ending a nine-year absence.
Why is the Bahrain event being held in Malaysia? The original Bahrain and Saudi Arabian Grands Prix were cancelled because of the geopolitical/security situation in the Middle East.
Rather than lose the Bahrain race altogether, Bahrain, Malaysia, F1 and the FIA agreed to relocate it to Sepang.
Before we, Malaysians, get carried away by the excitement, there is one fundamental question that must be answered. Will the Bahrain Grand Prix, even if
it is only a one-off event, benefit Malaysia and Malaysians?
If the answer is anything less than a convincing “yes”, then let us not make the same expensive mistake twice.
Let us recap where we had erred and why we had to finally close shop. Malaysia hosted the Formula One Malaysian Grand Prix at Sepang from 1999 until 2017.
During those 19 seasons, the event undoubtedly placed Malaysia on the global sporting map. Millions of television viewers around the world watched races from Sepang, and tourism officials often pointed to the international exposure generated by the event.
But global exposure alone does not pay the bills. By the time the government decided to discontinue hosting Formula One after the 2017 season, it had become increasingly obvious that the event was no longer commercially sustainable.
Successive governments had to pay enormous annual sanction fees to Formula One’s commercial rights holder, in addition to bearing operational and maintenance costs associated with staging the race.
Reports at the time estimated that Malaysia was paying about RM300 million annually to host the event, while revenues from ticket sales, sponsorships and tourism were nowhere near sufficient to offset the expenditure.
Former prime minister Datuk Seri Najib Razak himself admitted in 2016 that the government had incurred cumulative losses of around RM3.5 billion from hosting Formula One since its inception in 1999.
That staggering figure alone should serve as a warning against any hasty decision to bring Formula One back.
The declining attendance at Sepang also told its own story. During the early years, race weekends attracted well over 100,000 spectators.
However, attendance gradually declined as fans found alternative ways to follow the sport through television and digital platforms. Competition from neighbouring Singapore’s glamorous night race further reduced Sepang’s appeal.
Simply put, Formula One was no longer delivering value for money. It was therefore a sensible and responsible decision when Malaysia finally stepped on the brakes in 2017.
Interestingly, several political leaders who are today discussing Formula One’s possible return had previously acknowledged that hosting the race was financially unjustifiable.
Former Youth and Sports Minister, Hannah Yeoh, was among those who questioned the wisdom of reviving Formula One. She argued that government funds should instead be channelled towards developing grassroots sports, improving facilities and nurturing young Malaysian athletes rather than subsidising a mega-event enjoyed by relatively few.
This does not mean Malaysia should permanently shut the door on Formula One. Circumstances change. Commercial arrangements evolve. New business models emerge.
If projections show that Malaysia can actually profit from hosting Formula One, create meaningful employment, boost tourism, stimulate local businesses and generate sufficient tax revenues, then by all means proceed.
However, if the numbers resemble those that eventually forced Malaysia to withdraw from Formula One nine years ago, then the answer should remain “no”.
There is absolutely nothing embarrassing about declining to host an event that does not make economic sense.
On the contrary, it demonstrates fiscal discipline and responsible governance. The rakyat expect prudent management of public money.
Formula One undoubtedly provides excitement, glamour and international prestige. But prestige cannot become an excuse for financial irresponsibility.
Interestingly, the Bahrain Grand Prix to be hosted by Malaysia has an important caveat – it was “subject to final agreements and official sign-off, including approval by the World Motor Sport Council”.
However, subsequent FIA reporting has moved beyond the original announcement and confirmed the race arrangements, including its official timetable. The race is set for Sunday, Oct 4, with qualifying on Saturday, Oct. 3.
This will be an extraordinary F1 event because a Grand Prix is effectively being transferred to another country while retaining the name of the country whose race was cancelled. Bernama described it as the first time in F1 history that a cancelled race has been relocated to another country.
Many are wondering whether this one-off event, if it proves to be a resounding success, could pave the way for Malaysia to bring Formula One back to the country on a permanent basis.
While I would urge caution and restraint, I would readily welcome its return if we can manage it without repeating the costly mistakes of the past or placing an undue burden on taxpayers. If we can do that, then let us welcome F1 back to Malaysia.
If not, we can certainly live without the roar of Formula One engines. Cheap thrills should never come at the expense of the nation’s finances.
The lesson from the past is crystal clear. This time, let commercial viability, and not national pride, determine whether Formula One deserves a permanent lap at Sepang, after the Bahrain event in October.
The views expressed here are those of the columnist and do not necessarily represent the views of Sarawak Tribune. He can be reached at sirsiah@gmail.com.
