Bahrain Grand Prix fuels up Malaysian MSMEs with RM345m in spillover

Malaysia’s one-off turn as host of the Formula 1 Gulf Air Bahrain Grand Prix has paid off for local small businesses, with micro, small and medium enterprises (MSMEs) reaping more than RM345 million (around US$84.3 million) in economic spillover from the race at Sepang International Circuit.

Steven Sim Chee Keong, Entrepreneur Development and Cooperatives Minister, said in a statement on 8 October that almost half of the 261,000 spectators were foreign tourists. 

Attendees were projected to have spent 2.17 times more than visitors to ordinary events, with foreign visitors typically spending more because of longer stays and outlays on accommodation, food and beverage, transport, shopping and recreation.

"The impact reflects the important role of large-scale international sporting events in stimulating economic activities, especially through the rise in tourism expenditure and demand for local goods and services,” the minister said in the statement.

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Sim said the impact was felt most by MSMEs in hospitality, F&B, retail, transport, entertainment, tourism-related services and support industries. He added that the figures reflect the role large-scale international sporting events play in stimulating economic activity through tourism spending and demand for local goods and services.

Looking ahead, Sim said Malaysia could use international sporting events as a platform to widen market access for SMEs. This includes strengthening ties between SMEs and bigger industry players, event organisers, tourism operators and local suppliers so that more small businesses share in the benefits.

The race also had a diplomatic side. Prime Minister Anwar Ibrahim said he met Bahrain’s Crown Prince and Prime Minister Prince Salman bin Hamad Al Khalifa, who was in Malaysia for the race. 

During the meeting, it was conveyed that Malaysia welcomes Bahraini investment. Both sides discussed expanding cooperation in healthcare, Islamic finance, technology, tourism, food security, AI, cybersecurity and smart manufacturing. Anwar added that Malaysian companies are ready to use Bahrain as a gateway to the Gulf Cooperation Council market.

The prime minister has also said that Malaysia is in talks to host F1 again, The Star reported. 

The Bahrain Grand Prix was staged at Sepang from 2 to 4 October under a special arrangement between Formula 1, the FIA and the governments of Bahrain and Malaysia, bringing the sport back to the circuit for the first time since 2017. 

According to media intelligence firm CARMA, the return created a strongly positive tourism halo for Malaysia, with tourism-related conversation at 68.6% positive sentiment against 3.7% negative. Talk of a permanent Malaysian Grand Prix drew 90% positive sentiment, following Prime Minister Anwar Ibrahim’s meeting with F1 CEO Stefano Domenicali. 

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