Terms for Extension of Formula One Singapore Grand Prix

Miss Cheng Li Hui asked the Minister for Trade and Industry (Industry) (a) what are the terms for the extension of the Formula One Singapore Grand Prix for another four years; and (b) whether there is any evaluation of the benefits of the extension as against the inconvenience caused to drivers and retailers.

The exact terms of the agreement between the Singapore Tourism Board (STB) and the race promoter, Singapore Grand Prix Pte Ltd (SGP), are subject to business confidentiality. Nevertheless, the decision to continue hosting the Formula One Singapore Grand Prix for another four years, from 2018 to 2021, was made after careful deliberation of the expected benefits and costs from a national perspective, taking into account the impact on various stakeholders.

Including the 2017 race, Singapore would have hosted over 450,000 international visitors, contributing about $1.4 billion in incremental tourism receipts.7 The race has also generated business opportunities for local companies, with more than 90% of race-related works sub-contracted to Singapore-based companies. In addition, there are indirect benefits, as the Formula One Singapore Grand Prix has boosted Singapore's image as a vibrant and innovative city due to the high global viewership and media coverage. Over the years, the Singapore race has built up a significant brand and following, successfully establishing itself as a signature race on the F1 calendar that has been referred to as the "crown jewel" of the sport. We expect to sustain such benefits in the new term, and to reduce the cost of organising the race to $135 million per year, with the Government’s share remaining at 60%. This cost reduction is due to factors, such as operational efficiencies.

The Formula One Singapore Grand Prix is iconic because it is a night race on a street circuit. However, we recognise that it may cause inconvenience to segments of the public, such as drivers and retailers. Over the years, the Government agencies have worked with the race promoter and affected stakeholders to find ways to better plan and coordinate the race execution, to minimise these inconveniences.

To reduce the impact on road traffic and drivers, we have halved the number of days for road closures from 12 days in 2008, to six days in 2017. The introduction of the Circle Line and Downtown Line has also increased accessibility to the race vicinity during the F1 period and alleviated the traffic congestion. In addition, STB has worked with various stakeholders, including retailers, to capitalise on the buzz created by the race by launching the Grand Prix Season Singapore (GPSS) – a season of lifestyle events complementing the race experience.

The extension of the Formula One Singapore Grand Prix for another four years was decided on terms that are beneficial to all parties. STB will continue to work closely with other Government agencies and stakeholders to enhance the event experience for Singaporeans and visitors while minimising inconveniences to the public.