Oral reply to PQs on F1 Contracts

Questions

Mr Gan Thiam Poh: To ask the Minister for Trade and Industry (a) how has the Ministry assessed that the F1 contracts were not structured to the disadvantage of the Government; (b) whether any audits have found areas of non-compliance in the Ministry’s processes that may have compromised the structuring of the F1 contracts; and (c) whether such areas of non-compliance, if any, involved the Minister exercising his discretion to make exceptions to standard operating procedures, without requiring the approval of the Cabinet.

Mr Edward Chia Bing Hui: To ask the Minister for Trade and Industry in light of CPIB's findings on former Minister S Iswaran (a) whether he has directed the Singapore Tourism Board to conduct a full assessment of the relationship between former Minister S Iswaran and Mr Ong Beng Seng concerning the F1 Singapore Grand Prix; and (b) if so, whether there have been possible areas of lapses in due diligence and reporting processes.

Mr Yip Hon Weng: To ask the Minister for Trade and Industry (a) how will the ongoing corruption allegations against former Minister S Iswaran affect the conduct of our economic and investment-oriented agencies in attracting business and investors; (b) whether the Ministry will review and strengthen current guidelines for how these agencies engage with private entities; and (c) what steps will the Government take to address any public concerns and uphold Singapore's reputation for integrity and good governance in the international business community.

Oral Answer (to be attributed to Minister-in-Charge of Trade Relations Grace Fu)

1. Mr Speaker, may I have your permission to take Parliamentary Questions 25 to 27 on today’s Order Paper together? These questions pertain to the Formula One (F1) races and the conduct of economic agencies in working with private entities. My response today will also cover the Parliamentary Question filed by Associate Professor Jamus Jerome Lim[1] for a subsequent sitting, and if the Member is satisfied with the response, he may wish to withdraw the question after this session.

2. Sir, I would first say that many parts of these questions relate to matters which may have to be dealt with during the trial of Mr Iswaran. It is not appropriate for us to speculate or prejudge the outcome of the proceedings. I will answer in so far as it is possible to do so.

3. Mr Edward Chia asked if the Singapore Tourism Board has conducted an assessment of the relationship between former Minister S Iswaran and Mr Ong Beng Seng concerning the F1 Singapore Grand Prix. Mr Gan Thiam Poh asked how we assessed the benefits of the F1 contracts. Associate Professor Jamus Jerome Lim asked about Government’s contracts with Mr Ong Beng Seng’s companies. More than one Member asked if there has been non-compliance with processes.

4. In 2007, the Singapore Tourism Board (STB) entered into a contract with Singapore GP Pte Ltd to organise the F1 night race in Singapore. STB renewed this contract three times, in 2012, 2017 and 2022. We are in the fourth term of our contract, which will end in 2028.

5. MTI had previously said that: “The terms of all the agreements were considered carefully by the Government. There was an independent consultancy study. There is nothing to suggest as of now that either the F1 contracts or other contracts were structured to the disadvantage of the Government.”

6. But as Members will appreciate, given the allegations of corruption, we are reviewing the terms of deal again. We have also asked STB to conduct an audit of the most recent race, held in 2022, of which accounts are ready for audit. Members will understand that I cannot say more on this at this point.

7. Whilst we will review any Government contracts to safeguard Singapore’s interest, we remain committed to the F1 Singapore Grand Prix. Preparations for the 2024 race have started.

8. Mr Yip Hon Weng asked about the conduct of economic agencies in working with private entities, to ensure we uphold Singapore's reputation for integrity and good governance in the international business community. Like other Government agencies, our economic agencies abide by the Public Service Code of Conduct, which sets out the principles and rules of engagement. These include interactions with private entities, such as rules on accepting gifts and hospitality. Minister Chan will share more details about the Code, and the practices Public Service officers are required to adhere to, in his reply later.

[1] To ask the Minister for Trade and Industry (a) whether Government projects that have been planned with Mr Ong Beng Seng’s companies will (i) proceed as planned or (ii) have the contracts reviewed; and (b) whether the terms of any such contracts have been amended.