SINGAPORE – There is nothing to suggest, as of now, that Formula One (F1) contracts or other contracts were structured to the disadvantage of the Government, the Ministry of Trade and Industry (MTI) said in a statement on Jan 18.
“The terms of all the agreements were considered carefully by the Government,” MTI added. “There was an independent consultancy study.”
In a written reply in August 2023 to a parliamentary question, Trade and Industry Minister Gan Kim Yong said the Singapore Tourism Board had commissioned the independent consultancy study towards the end of the third contract term in 2021 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, he added.
This comes as former transport minister S. Iswaran was handed 27 charges, including two counts of corruption, in court on Jan 18. He had been involved in government engagements involving F1 from as early as 2008.
Iswaran allegedly obtained valuable items, such as tickets to musicals and football matches, either from property tycoon Ong Beng Seng, or through Como Holdings (UK) or Singapore GP. Mr Ong is the man who brought F1 to Singapore.
In July 2023, the Corrupt Practices Investigation Bureau (CPIB) told Prime Minister Lee Hsien Loong that it needed to interview Iswaran as part of investigations into a case it had uncovered. PM Lee gave his approval for CPIB to conduct a formal investigation.
Iswaran and Mr Ong were both arrested on July 11, 2023, and later released on bail.
On July 12, PM Lee said he had instructed Iswaran to take a leave of absence until the investigation was completed.
MTI said all preparations for the F1 Singapore Grand Prix in 2024, which is scheduled for Sept 20 to 22, are on track.
Since its debut in 2008, the F1 Singapore Grand Prix has attracted more than 550,000 international visitors and generated about $2 billion in incremental tourism receipts, MTI said. Between 2008 and 2022, more than a billion viewers watched the race.
In September 2023, the race drew at least 264,108 people over the three-day race weekend.
MTI said international business events, such as the Time100 Leadership Forum, Forbes Global CEO Conference, Milken Institute Asia Summit and SuperReturn Asia, have also been organised around the F1 race in Singapore.
Beyond tourism, MTI added that the race has benefited Singapore companies involved in different aspects of the event, including logistics, transport, construction and engineering services.
