APRIL 13 — After 20 years of operation, Formula 1 race no longer matches economic benefits. It is only in tune with the trend to announce stopping to host the race. Instead, the capitals can be used to upgrade basic facilities of the circuit and develop car racing at grassroots level in a bid to upgrade the standard of Malaysian car races and technical experts.

As the government has announced its decision to stop hosting the race in 2018, the 2017 Malaysia F1 Grand Prix at the Sepang circuit will be the last race.

Since hosting the race in 1999 for the past 19 years, F1 has helped promote the country. Based on the increasing number of tourists visiting Malaysia due to F1, it has driven tourism revenue in the region.

The techniques of car racing, talents and knowledge in the country have been upgraded. Back then, there were only two Asian countries hosting F1, Malaysia being one of them. With this advantage, F1 has significantly contributed to the country’s economic development.

However, as the number of Asian countries hosting F1 increases over the years, the demand for F1 in Asia has far exceeded saturation. This has directly slimmed the market share of the Malaysia stop. Even as we have to bear the exorbitant cost of hosting the event, the number of audience, tourists and sponsors continue to drop. Return of the race keeps sliding. The government has no choice but to end the contract with F1.

Taking the market into consideration and after 20 years in operation, if the race no longer meets economic benefits, the public should not be sentimental about F1’s departure as the youth and sports ministry and Sepang International Circuit have shared the same view.

The F1 organisers increase the fee for hosting rights every year at a rate of 7per cent to 10per cent. Based on the formula, the costs of hosting right for Malaysia must have increased many folds since it started hosting the event in 1999.

The decision to stop hosting F1 does not have a major impact on the local tourism industry. In the past, Malaysia used to rely on hosting F1 for the fans and tourists across the world to get to know Malaysia. This objective can be said to have been achieved. To retain tourists, we do not necessarily need to rely on F1 again. Tourists come to Malaysia not entirely because of F1. It is the culture, customs and natural beauty of this country that have lured the tourists.

While people may be worried about the Sepang International Circuit being redundant after F1 race is no longer held in Malaysia, it is not the case. The circuit can still be used for other racing events such as GT-Racing. Other international racing events can be as popular as F1. The money spent on F1 can be used to develop the circuit, including upgrading the basic facilities of the circuit and the development of car racing at grassroots level to lift the standard of experts’ techniques and car racers in Malaysia. Hence, stopping to host F1 can be good news to many local car racers.

F1 and other car races are among sports events promoted by Malaysia. Due to marketing reason, the government has re-aligned the development plan both on its software and hardware to match the economic benefits and chain effects generated by the sport.

We hope the government can apply similar planning philosophy and mentality on other sports events for national sports to flourish. — Sin Chew Daily

* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail Online.