Process for Award of Contract to Run Formula One Singapore Grand Prix for Another Seven Years
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the award process for the seven-year Formula One contract renewal and whether the Ministry is reviewing it following reports of possible conflicts of interest. Minister for Trade and Industry Gan Kim Yong stated the race has generated S$1.5 billion in tourism receipts and over 550,000 visitors since 2008. He explained that the Singapore Tourism Board commissioned an independent study in 2021 which recommended the extension based on significant economic and reputational benefits. The Government accepted this seven-year term to account for post-pandemic recovery and the construction of NS Square, signing the contract in January 2022. Minister for Trade and Industry Gan Kim Yong added that the Ministry cannot comment on ongoing Corrupt Practices Investigation Bureau investigations.
Transcript
57 Mr Gerald Giam Yean Song asked the Minister for Trade and Industry (a) whether the Ministry will release a breakdown of the process by which the award of the contract to run the Formula One Singapore Grand Prix for another seven years was made; and (b) whether the Ministry is currently reviewing this contract in light of new information that has emerged relating to possible conflicts of interest in the decision-making process.
Mr Gan Kim Yong: The Formula One (F1) Singapore Grand Prix began in 2008 for a term of five years until 2012. This was renewed in a subsequent contract for five years until 2017 and, following that, for four years until 2021. The years 2020 and 2021 were disrupted by COVID-19. Since its debut in 2008, the race has generated more than S$1.5 billion incremental tourism receipts and attracted more than 550,000 unique international visitors. In addition, the race continues to reinforce Singapore’s reputation as a global city, attract Meetings, Incentives, Conferences and Exhibitions (MICE) events and business meetings, generate local business spend and create jobs for Singaporeans.
The current contract to host the Singapore Grand Prix is the fourth contract renewal. Towards the end of the third contract term in 2021, the Singapore Tourism Board (STB) commissioned an independent consultancy study to evaluate the costs and benefits of a fourth term extension. The study concluded that the race would continue to bring significant benefits to Singapore. To allow time for international travel to recover after COVID-19 and to take into account the construction of NS Square, MTI and STB ascertained that an extension of seven years would be appropriate. The Government accepted STB’s recommendation in September 2021. Subsequently, STB entered a seven-year contract with Singapore Grand Prix in January 2022.
We are unable to comment about any Corrupt Practices Investigation Bureau (CPIB) investigations that are ongoing.