SIC Bets On Premium Positioning For Driving Experience Centre Despite Slow Take-up

By Siti Radziah Hamzah

KUALA LUMPUR, May 18 (Bernama) -- Sepang International Circuit (SIC) is maintaining a premium positioning for its newly completed Driving Experience Centre (DEC) despite modest early utilisation as the initiative forms part of efforts to sweat its non-race assets and diversify revenue streams.

The DEC is a driver safety-focused facility with specialised equipment designed to simulate everyday driving conditions, providing a safe, controlled environment for drivers to sharpen and train their skills on the DEC handling track.

SIC chief executive officer Azhan Shafriman Hanif said the purpose-built centre is currently operating at 20 to 30 per cent utilisation rate.

He said the utilisation rate is expected to increase over the next five years, with a target of reaching levels comparable to the main track’s 80 to 90 per cent utilisation rate.

“The project itself basically is a diversification from our main business,” he told Bernama recently.

The DEC is one of SIC's key projects in the previous long-term master plan that focused on infrastructure modernisation and commercial offerings and was constructed to bridge motorsports to automotive and road safety as an effort to reduce the circuit's dependency on large-scale events.

It focuses on safety driving and experiential programmes for corporate clients and everyday drivers.

Physical construction commenced in 2021, subsequently navigating through execution challenges during the COVID-19 pandemic, which altered the initial scale and timelines of the development. 

The second phase, comprising the hospitality wing, was recently completed, enabling the entire facility to become fully operational for integrated theoretical and practical training sessions.

Despite the relatively low utilisation rate, SIC is not looking to compete on price, positioning the DEC as a premium facility.

“I would say that we do not want to sell ourselves cheap because this is a world-class facility,” he said.

The DEC features a 1.5-kilometre handling circuit, skid control modules and training infrastructure, and was developed in phases after the project was rescaled due to rising material costs.

The hospitality component, which includes classrooms and meeting facilities, was recently completed to support training activities.

Azhan Shafriman said early traction has been driven mainly by automotive manufacturers, safety programmes and experiential events, including vehicle launches and driving activities.

He said the utilisation rate is expected to improve as awareness grows and more manufacturers incorporate the facility into their programmes, alongside potential demand from corporate clients and government-related training programmes.

Operationally, SIC is maintaining a lean cost structure for DEC, with a small in-house team supported by outsourced services and training providers.

SIC did not disclose the DEC’s revenue contribution or breakeven timeline, noting that the focus remains on building long-term utilisation rate and expanding the broader ecosystem around the facility.

-- BERNAMA