KUALA LUMPUR – When Covid-19 hit our shores in March 2020, the nation went into a lockdown and many industries and communities were left in uncertainty without a possible resolution in sight.
At the dawn of this pandemic when all activities were put on hold indefinitely, one man decided to do the unthinkable and accept the responsibility of managing an entire racing circuit despite being aware of the many unknown challenges that lay ahead.
Azhan Shafriman Hanif took on the role of Sepang International Circuit (SIC) chief executive officer on April 8, 2020, not knowing what the future may hold − for him, his charges and the motorsports industry at large.
Speaking exclusively with The Vibes, Shafriman shares his thoughts and feelings in assuming the top post at the iconic racetrack at a time when many would not have opted to do so.
The former Petronas man also reveals his plans for the circuit and after hearing his visionary ideas, there appears to be a shining beacon of light at the end of the tunnel for SIC as Malaysia transitions into the much-awaited endemic phase.
The Vibes: You took over as SIC chief executive officer (CEO) during the pandemic when it was not the best time for sports. Could you tell us why you went ahead and took the job?
Azhan Shafriman Hanif: At that point, I was with Petronas for about 13 years − since 2007. Since 2012, I was handling motorsports, where I worked my way up from manager to head of department. Although motorsports had been scaled down from a department to a small unit, the portfolio was the same. At that time, Petronas was managing the Mercedes AMG Formula One team as well as other portfolios.
Despite the portfolio growing, the number of people shrunk so it was quite a challenge with the motorsports team. When I heard that Datuk Razlan Razali was leaving and he had interviewed a couple of candidates but couldn’t find the right person, I texted him: “Datuk, is the position still available? If it is, I would like to try.
Later that day, I got a reply saying: “Thank you for your interest in taking over the position of CEO of SIC, it’s good that I know someone is doing the job of motorsports. Send me your résumé and we will see.” I got the job before the pandemic hit.
When it came, I had already accepted the job and I had already told my previous employers that I was leaving. I joined SIC on April 8. You ask me why again? I wanted something new, something different, a new challenge. Coming in wasn’t easy, not as rosy as it was before − it was a big shoe to fill − but I relish a challenge and I hoped to take SIC to the next level.
TV: What were your first thoughts when you took over?
AS: I’ve been coming to SIC every year − the circuit has been here for quite some time. My aim was to upkeep the facilities. The track is amazing − one of the best tracks in the world in terms of design. I looked at details, such as cleanliness − the things that we had overlooked.
I focused on managing the circuit, the facilities − not easy to care for it in its entirety as the grass needed to be cut, drains needed to be cleaned and the people needed to be taken care of. At the moment, we have a staff count of about 90, who are all capable of taking care of the circuit. Best bunch of people I have ever worked with − I owe it all to them as I couldn’t have done it alone. But there were some things when I came in, in terms of governance − those are my strengths − those things needed improvement.
I am glad we have improved. We have an Integrity and Governance Unit (IGO) and Malaysian Anti-Corruption Commission (MACC) staff to look into all the integrity and governance issues. Integrity has always been one of the things that SIC has been strong with but there were certain areas that needed to be tightened up.
TV: With the pandemic, there were no events, and no one knew when it would end. What was your plan for SIC?
AS: This pandemic wasn’t something you could learn about nor was it something that could be taught. I had no experience managing a company during a pandemic. So, I learned to do it by using common sense and my previous experiences.
There are two elements to managing a company − one is revenue, and the other is cost. We knew there was no revenue coming in − we couldn’t control that, but we could control the cost. So, we went into cost optimisation or cost control and tightened our belt.
There was a lot of things I cut during the pandemic to manage our cost. One of the things that was not very favourable was cutting allowances and overtime. We also looked into the utilities and see how we could cut on unnecessary spending − we discovered that if we really open our eyes, we can really save.
TV: Now that your contract has been renewed, what are your current and forthcoming plans for SIC?
AS: One of the things that the pandemic allowed us to do is plan, and we plan to make SIC more of a lifestyle venue as opposed to just a venue for motorsports.
I would love it for more non-motorsports people to come and support SIC. In the past, SIC has been focused on the motorsports segment but now I want to expand that to include more lifestyle activities, such as cycling, running, photography as well as holding lifestyle-based events.
One of the things I want to do is attract more youth and students to come in and experience the circuit. I also want to look into projects that have been part of the SIC master plan – the one that has already been approved by the board is a driving experience centre next to the go-kart circuit, which is going to offer the public a different product suite that is more focused on safety.
We are also planning to refurbish the lake and set up more lifestyle-oriented conveniences, such as a café where people and their families can chill and relax. I’m also focused on bringing in commercial outlets and franchise eateries.
TV: What motorsports are you a fan of?
AS: Although I have not driven or ridden professionally, I tend to lean more towards the four-wheeled segment compared to the two-wheeled one. But all in all, both Formula One and MotoGP appeal to me. Similar to how I like and follow football as a Manchester United fan, I follow the weekend races.
TV: How does it feel to actually work at such an iconic racetrack?
AS: Honestly, I look forward to it every day, sometimes, even on the weekends, too. Because I’ve been working in offices every day before this − at the (Petronas) Twin Towers for so many years − and to have an office with a view like this, it’s like: “Okay, let’s go!” My motivation is really good, I look forward to coming here (to the track).
Maybe because I am under contract – contract-wise, I do have my calendar and I tick every box − but I do count my blessings every day.
TV: It is such a great accomplishment for SIC to be granted the privilege of hosting the MotoGP for the next few years. How does that make you feel, especially amidst an ongoing pandemic?
AS: It was not an easy feat because the contract wasn’t signed yet (when I found out) and I had to somehow convince the government/ministry to continue. But with the changing of the government, the team had a tough time doing it.
But we did do it and, of course, we would like to thank the Finance Ministry as well as the (Youth and Sports Ministry) KBS for supporting us, and we have the next three years to look forward to for MotoGP. But it was not easy, there were a lot of meetings, letters going around until the government finally decided that we could continue with MotoGP.
But after we did the winter test, I saw a light at the end of the tunnel. After two years of not doing anything and with the motorsports bubble, I saw the potential of what we could do to make things happen.
TV: As SIC has remained stagnant for quite some time, do you have any refurbishment plans and if so, what would they be?
AS: When it comes to upgrading the SIC, I want to talk about the people − people are also assets − and we have a bunch of gung-ho people that work day and night to ensure that the track is able to host local and international events.
We had the consumer fun-walk and the minister was all praise when we showed how well we took care of the circuit. The circuit is very well maintained – we replaced the roof of the grandstands and changed all the toilets.
I think the next thing to do would be to change the seating for the grandstands as well as the floorings because a lot of people pay a lot of money to be on that side. We will also be looking at improving the paddock side as well. We are doing something, and hopefully, we can do a lot more.
TV: Since there are no plans for SIC to host Formula One in the near future, what else can SIC do to stay relevant to motorsports apart from MotoGP?
AS: Apart from MotoGP and Formula One, there isn’t many other events. If you talk about Le Mans, it is well liked and followed in Europe but, here in Asia, the culture isn’t there yet in terms of endurance racing.
But I would want to look into developing our own signature programmes − the Malaysian Championship Series (MCS) and also the S1K (Sepang 1000Km). We have had numerous successes in the past, such as the Merdeka Endurance Race − those are the things we need to look into before looking at international events.
I am very blessed to still have MotoGP on the calendar and I agree we should have international events as well but we should look into what we have here on the domestic front first.
TV: You have mentioned that SIC will start hosting concerts, but do you think organisers would opt to have it in SIC or have it in other hotspots, such as the Axiata Arena, which provides better transportation services and conveniences?
AS: I think Sepang is unique in terms of distance. Although it may seem quite far (from Kuala Lumpur), we have had concerts here before with international artists. One thing that is advantageous is the space that we can offer.
For example, Good Vibes did their event in Genting but in terms of space, it was very limited. We are far from residential areas so complaints are not an issue. At the moment, we are well placed to host events and it is a fairly good choice to do concerts here.
TV: As SIC is still synonymous with Formula One, how do you plan to change the mindset and bridge it with other events not related to Formula One?
AS: We can’t run away from people saying that we are closely associated with Formula One since one of the reasons the track was built was for Formula One.
Perhaps, Formula One will return one day, we don’t know. But for the time being, I would like SIC to be seen as a venue where people can come and experience the circuit during local and international events as well as sporting events.
SIC is a venue for everyone similar to how the (Bukit Jalil) National Stadium is open to the public. I want people to think of Sepang as a place to conduct activities.
TV: How can SIC help boost the economy?
AS: During those times when Sepang hosted Formula One, the spillover effect really helped boost the economy. We had done some studies − by having international events − in terms of the spillover, the number of jobs created goes up.
It can also help in terms of tourism and entertainment tax. But entertainment tax is one of the things that we need to manage as it is quite high. We’ve heard a lot of noise since we announced MotoGP so we need to resolve this with the state government to move forward.
TV: What Formula One team do you support?
AS: Mercedes. Before they came in, I was a McLaren fan. – The Vibes, April 8, 2022
