Considerations in Extending Formula One Singapore Grand Prix for Another Seven Years and Expected Overall Benefits to Singapore

Mr Ang Wei Neng asked the Minister for Trade and Industry (a) from 2008 to 2019, how much Government subsidies are provided to the Formula One Singapore Grand Prix; (b) what are the estimated economic benefits that arose from these 12 night races; (c) how much Government subsidy is expected to be provided for the 2022 Formula One Singapore Grand Prix; and (d) what are the estimated economic benefits despite the COVID-19 pandemic situation.

The Government decided to support the Formula One (F1) Singapore Grand Prix for another seven years, after thoroughly evaluating the costs and benefits that a term extension could bring to Singapore.

The projected economic benefits to Singapore of the new term outweigh the costs to the Government. Similar to previous terms, the annual cost of organising the race for the next seven years is estimated to be between $135 million and $140 million. The Government will co-fund 60% of approved costs.

The race is expected to bring significant economic benefits to Singapore. Since 2008, the Singapore Grand Prix generated around $130 million in annual incremental spending from tourists attending the race. In addition, the race acts as a strong focal point for global Meetings, Incentives, Conferences and Exhibitions (MICE) events and business meetings. With more than 30 MICE events clustered around the race each year, the Singapore Grand Prix has attracted more than 550,000 international visitors thus far.

The race also brings global branding benefits to Singapore. The 2019 Singapore Grand Prix generated a media value of around $70 million to $75 million. It was watched by around 86 million television viewers globally. This was one of the highest global viewership of any international sporting event.1

The race also benefits the local business community. Ninety percent of the race organisation is sub-contracted to Singapore-based companies in the engineering, construction and hospitality sectors. Around 30,000 staff, contractors and stakeholders work at the Marina Bay Street Circuit for each race.

The first few years of the new term may reap lower economic benefits compared to previous years as international travel recovers from COVID-19. Nonetheless, I am confident about the longer-term appeal of the Singapore Grand Prix when international travel normalises. The extension will help sustain Singapore's reputation as a global city with a vibrant lifestyle and a hub for tourism and MICE events, support the recovery of our travel and tourism industry and generate business revenue and jobs for Singaporeans.