- Azhan Shafriman Hanif was named CEO of Sepang International Circuit in April
- Formula 1 had talks with the circuit about a potential GP this year
- The venue has plans to be a leading regional sports hub
The Covid-19 pandemic has hit motorsport venues and events in Asia hard. Travel restrictions and quarantines have seen Formula 1 and MotoGP races wiped off the region’s sporting calendar for 2020, among other events.
Malaysia’s Sepang International Circuit has been one of the affected businesses, losing revenue as races, testing sessions and major events have been cancelled. Steering the asset through this period has been the job of Azhan Shafriman Hanif, who was appointed chief executive in April.
Speaking about the challenge to SportBusiness, Shafriman said, “I want to bring SIC to a greater level, but due to the unprecedented pandemic I am working with the team to tackle the business shortfall in the short term and strategise the way forward, to overcome the current economic uncertainties.”
SIC has so far managed without layoffs or major salary cuts.
“As an event-based entity, the impact is huge,” Shafriman says. “The original calendar for both local and international events totally changed and we have been financially affected. But we have alternative plans as backups to keep us running…Up to now, there is no retrenchment of staff and no reduction of salary. As part of cost-cutting efforts, staff work at home so that we can save on utilities.”
Prior to taking up the role of chief executive at SIC, Shafriman headed Malaysian state energy company Petronas’s sponsorship unit, which has a strong focus on motorsport. A mechanical engineer by training, majoring in manufacturing and material science, he was part of the Petronas business for more than 13 years.
Looking beyond the pandemic, in the mid-term Shafriman said his plans for the racing hub include a focus on “operational excellence, governance and process control”. In the long-term, he wants to ramp up sustainability efforts and forge new commercial partnerships.
Reviving F1
With Sepang sitting just a few kilometers away from the Kuala Lumpur International Airport, and the circuit complex a standalone facility that could establish Covid-19 containment protocols, the new CEO says he was close to hosting a flyaway F1 race this year.
“There was a discussion between SIC and Liberty Media in regard to hosting F1 in Malaysia after the Chinese GP was officially cancelled…They were looking for another alternative venue to reduce the logistics and other costs. However, looking at the current conditions, we were unable to proceed.”
Shafriman was diplomatic when asked if a Malaysian F1 race will return to the calendar, perhaps even as a night race now the circuit has installed floodlights.
“All I can say for sure is that if a good offer presents itself, we will listen carefully. If we want to bring back F1 to Malaysia and portray something different than before then we need to look at all angles. But if the offer from F1 is interesting, we will definitely look into it.”
Domestic solution
Sepang also lost this year’s Malaysian MotoGP event, the circuit’s biggest annual event, due to the pandemic. Shafriman and his team are turning to smaller races for revenue to cover some of the expected losses.
“Our contingency plan is to focus on local races for both 2-wheels and 4-wheels, and track day sessions remain our bread-and-butter.” Sepang allows drivers and riders access to the 3.4 mile world class circuit several times a year and draws interest from both local and international motorsports enthusiasts happy to pay for the experience.
Getting fans through the gates would also help the bottom line but that option remains on hold.
“To be honest, I would love to see the spectators cheering for their heroes at the circuit. Despite running local championships and other events, something is missing.
“However, due to the ongoing pandemic we do not want to jeopardise the health and safety of others. For now, fans can enjoy the races at home via live streaming on our official page.”
Growing motorsport region
A major part of Shafriman’s role as chief executive is to oversee the SIC Master Plan, which seeks to turn the circuit into Asia’s leading “sports and edutainment” hub, a multi-faceted facility that encourages repeat visits throughout the year.
“We are currently reviewing the plan and timeline based on the current pandemic situation, but upcoming developments include the Driving Experience Centre, which will be the first of its kind in Southeast Asia…The centre will offer defensive driving programs for private and corporate companies, with equipment that will simulate real-life conditions such as rain simulations, skid pans and kick plates.”
With Vietnam joining the F1 calendar and Thailand inking a new deal extending its role as a host of MotoGP races until 2025, Southeast Asia is growing in importance as a motorsport venue. This is a trend Shafriman expects to continue.
“It is growing rapidly in recent years. It has been remarkable. also boosts talent from this region to expand further in the arena of international motorsports championships. Opportunities are there and we will expand more and more.”
