F1 team can stimulate innovative investment

Malaysia's participation in the Formula One (F1) through the setting up of a 1Malaysia F1 Team can stimulate innovative and creative investment for the country, the Dewan was told on Monday.

Deputy Youth and Sports minister Datuk Razali Ibrahim said the initiative of setting up the 1Malaysia F1 team was in line with the Budget 2010 presented by Prime Minister Datuk Seri Najib Tun Razak.

Razali said the country would benefit from the branding and marketing strength of the F1 sport which has about 600 million fans worldwide, especially tourism, as it is one of the most popular sports in the world.

"With live telecasts throughout the year from strategic locations worldwide, this would help promote Malaysia continuously and stimulate our tourism industry," said Razali in reply to a question raised by Lim Lip Eng (DAP-Segambut) at the Dewan.

Lim had wanted to know the rationale behind the government's decision to invest in the team and whether it would be financially beneficial to the country in the long term.

Razali added that whatever revenue earned from the venture, would be used to build facilities including a research and development centre for the team, at the Sepang International Circuit (SIC).

"The returns from the venture will also depend on the placing of the team on the grid at every race and the team's ability to attract sponsors," he said.

Razali added that the '1Malaysia F1 Team' would also provide an avenue for the transfer of technology between Lotus and Proton, as well help Composites Technology Research Malaysia (CTRM) to build the chassis of F1 cars.

"Malaysians can also be proud of the F1 car as it will be produced locally and with components from Malaysia. This would increase the profiles of local companies involved in the motor industry and also boost the world's confidence in sophisticated Malaysian technology.

He said that at the initial stage, 30 percent of the workforce for the 1Malaysia F1 Team would be made up of Malaysians while participation from foreigners would account for 70 percent.

"For the first year, the management, Chief Executive, Chief Financial Officer, Legal Department, Human Resource, Marketing and Public Relations will be filled up by locals.

"Once the facilities are in place and completed in two to three years, the proportion will be reverted to 70:30," he said. - Bernama