SEPANG: Sepang International Circuit Sdn Bhd (SIC) is heading for a challenging and exciting year with its RM1 billion master plan to create more streams of income in order to return to the black.
Chief executive officer Datuk Razlan Razali said among the projects under its master plan was a safe driving centre.
“While much testing can be done on closed tracks, real-world car testing needs to take place in real-world conditions.
“The safe driving base will enable members of the public to test their cars in all types of environments.
“The process will cover everything, from performance and comfort to reliability and safety,” he told Business Times.
Other projects include a commercial park and hotel development.
The projects under the master plan will take up 47 per cent of the 300ha owned by SIC.
Razlan said the commercial park, consisting of shoplots, was 60 per cent tenanted to international teams.
“On hotel development, SIC is looking to have a four-star hotel with 200 to 250 rooms.”
He said the master plan was necessary to fix the company’s stagnant revenue growth.
“The current operation is running at maximum capacity, which results in stagnant revenue, albeit at its highest rate,” he said.
The circuit will be closed for the first time since 2007 for resurfacing and upgrading works next year to ensure that it retains its FIA (International Automobile Federation) and FIM (Federation of International Motorcycling) Grade 1 and Grade A status.
The drainage system, kerbs and run-off area will be upgraded while the gravel bed area at Turn 1 and 15 will be rebuilt.
Last year, SIC swung to a loss due to the unfavourable foreign exchange rate.
“The weakening ringgit has caused our business to incur losses,” said Razlan.