Mr Gerald Giam Yean Song: To ask 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.
Written Answer by Minister for Trade and Industry Gan Kim Yong
1. The 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. 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.
2. The current contract to host the Singapore Grand Prix is the fourth contract renewal. Towards the end of the third contract term in 2021, 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 SGP in January 2022.
3. We are unable to comment about any CPIB investigations that are ongoing.