Economic Returns from Government Grants Provided for Taylor Swift's Eras Tour Concerts in Singapore

Mr Xie Yao Quan asked the Minister for Culture, Community and Youth (a) what is the total economic value-add expected from Taylor Swift's The Eras Tour concerts in Singapore; and (b) how were the size and conditionality of the grant offered by the Government to bring the tour to Singapore determined.

Mr Xie Yao Quan asked the Minister for Culture, Community and Youth (a) what is the total economic value-add expected from concerts held in Singapore in the first half of 2024; (b) whether the Ministry has set a target for the total economic value-add derived from hosting concerts in Singapore for the full year; (c) if so, whether the Ministry expects to be on track to achieve the full-year target; and (d) what are the Ministry's strategies to remain on track to achieve its target amidst intense regional competition.

Mr Xie Yao Quan asked the Minister for Culture, Community and Youth whether the Ministry is looking into ways to make concerts by marquee acts such as Coldplay and Taylor Swift in Singapore more inclusive and accessible for Singaporeans.

Thank you, Sir. Sir, the Government took over the Singapore Sports Hub in 2022, with the vision: one, to establish Singapore and the Sports Hub as the leading sports and entertainment destination in the region; two, to inculcate a strong sense of affinity between Singaporeans and the Sports Hub; and three, to maximise synergies across the suite of facilities in the broader Kallang Alive precinct, in order to better activate the precinct.

Kallang Alive Sport Management (KASM), the entity that was put in charge of operating the Sports Hub after Government takeover, set out to be more than simply a venue for hire. KASM has a team which actively identifies and curates suitable content and programmes and brings them into Singapore. Our aim is to bring a whole spectrum of events to Kallang for Singaporeans, from top-tier marquee events to community-related ones, and from music concerts to sporting and social events. Since we took over, the Sports Hub has seen a 30% increase in sports, entertainment, and community and lifestyle event days since the Government takeover, compared to the best number of event days prior to the COVID-19 pandemic.

There were some questions at takeover around whether the Sports Hub would be able to continue to attract top tier events into Singapore. In the last year, apart from the ongoing Taylor Swift concerts, we have brought in several world class acts, such as Mayday, Coldplay, Ed Sheeran and Jacky Cheung. We have also brought in marquee sporting events including the FIBA Intercontinental Cup that came to Asia for the first time in 2023, the Super 750 Series Singapore Badminton Open, HSBC Sevens Singapore, WTT Singapore Smash, of which the third edition will begin sometime later this week, and innovative concepts such as fitness racing series Hyrox.

In the case of Taylor Swift, we moved fast and early to bring her show into Singapore. We did so as we recognised the large Swifties fanbase in Singapore and in the region, and were keen to deliver the concert experience to them, right here at the Sports Hub.

The idea for A-list marquee events to be staged at the Sports Hub was conceived of even before the Government takeover in December 2022, as we recognised the tremendous upside of such concerts to Singapore.

In February 2023, my colleagues and I from the Ministry of Culture, Community and Youth (MCCY), SportSG and KASM went to the United States to study the sport and entertainment industry. When the opportunity to discuss holding a Taylor Swift concert in Singapore came up, we broached it immediately, subsequently discussed it in detail and thereafter, reached an agreement for Singapore to be one of Taylor Swift’s tour stops.  We also saw the opportunity to make this a uniquely Singapore experience and it hence made sense to take a whole-of-Government approach and subsequently, other agencies such as the Singapore Tourism Board (STB) were brought in.

STB undertook its own assessment of the potential benefits of bringing the concert to Singapore and subsequently offered a grant to the concert promoter. STB assesses whether to give grants on a case-by-case basis, judiciously weighing up the benefits which might accrue to Singapore if the event were brought in. There has been some online speculation as to the size of the grant. I can say that it is not accurate and not anywhere as high as speculated, but due to business confidentiality reasons, we cannot reveal the specific size of the grant or the conditions of the grant.

However, I can assure Members of the House that the economic benefits to Singapore are assessed to be significant and outweigh the size of the grant. The direct economic benefits include for instance, additional tourist arrivals and additional spending on tickets, flights, hotel stays as well as entertainment, retail and dining in Singapore. Other cities who have hosted Taylor Swift concerts similarly reported an increase in economic activity arising from the concerts and we would expect the same in Singapore. Several market analysts have estimated a dollar range of the economic upside which we are likely to see, from the staging of the concerts, and whilst the event has not yet concluded, these may well be right.

In addition, beyond the tourism and economic benefits, being able to host A-list artistes such as Taylor Swift will help position Singapore as a cultural hub in Southeast Asia, capable of hosting a range of different arts, music and culture events, as well as major sporting and lifestyle events. This helps to brand Singapore as a fun, vibrant destination.

The Straits Times noted, for instance, that the benefits include, I quote, “economic growth, cultural enrichment, to global recognition”, whilst Nikkei Asia reported that the concerts, I quote, “underscore the city-state’s growing status as a pop culture destination”. Business Times also noted that these events made us, I quote, “look like a modern, open-minded and vibrant place”.

I would add that grants alone would not decide where a performer goes. Promoters of top artistes will do their own calculation and assess where they want to perform and for how long. One major consideration is the location, which is key. There are many reasons why world-class artistes choose to host large-scale concerts in Singapore. These include Singapore’s strategic location, quality infrastructure, good amenities, safety, efficiency and diverse cultural offerings. KASM also proactively works with the artistes and promoters, to make their experience of performing in Singapore a good one. All of this helps when attracting top-class events into Singapore.

Singapore faces intense regional competition for these concerts and other such events, and we will need to continue investing in our infrastructure and software to continue attracting marquee entertainment, lifestyle and sporting events into Singapore.

Sir, I want to add before I conclude that KASM’s mission goes beyond adding economic value to Singapore. It also extends to building Singaporeans’ affinity with the Sports Hub, as I said at the outset. We are exploring ways for more Singaporeans from all backgrounds to enjoy marquee acts. To Mr Xie Yao Quan's specific question, for some concerts including high demand ones like Coldplay and Taylor Swift, KASM retains some tickets and works with SportCares, which is SportSG's charity and philanthropic arm, SG Cares Volunteer Centres, SouthEast Community Development Centre and other organisations to give tickets to beneficiaries from lower-income families or at-risk families, as well as volunteers from these organisations, so that they too can be a part of the Sports Hub experience.

On other occasions, we have also activated areas in the precinct to allow other members of the community to busk in the atmosphere. This includes both entertainment events such as the Taylor Swift concerts as well as sporting events. For example, at the Singapore Smash 2023, we had community activations at OCBC Square and also across the island with tables set up at 18 venues through Singapore whilst the main event was happening at the Sports Hub. This provided Singaporeans with the opportunity to try their hand at table tennis and doing it on the same tables, top class tables, that were used by the best players in the world.

Beyond marquee entertainment and sports events, KASM has a dedicated team that looks at delivering more community programmes. While we cover a range of top-tier events that are ticketed, there are also non-ticketed and non-revenue-generating events such as the large-scale festivals during Chinese New Year, Hari Raya and Deepavali. This ensures that we have strong social return by providing programmes for everyone to bond, interact and build affinity with the Sports Hub. For example, Sports Hub had hosted a record 43 National School Games (NSG) Finals event days in FY2023. That is more than twice the number of 16 NSG finals event days before COVID-19, which stood at 60.

Sir, MCCY, SportSG and KASM will work hard, continue to hustle, and do our best to bring top class events here, but also continue to make the Sports Hub even more accessible to all Singaporeans.

Thank you, Sir. First of all, let me thank the Government for its very hard work in bringing all these top tier events to Singapore. I think the community really appreciates the work that has been done. I have two supplementary questions for the Minister.

First of all, as part of the terms and conditions of the deal that was struck to bring Taylor Swift to Singapore exclusively with the support of Government grants, was there the potential to include the involvement and profiling of local musicians? So, for example, when Coldplay performed earlier this year, local musicians featured as opening acts; when Ed Sheeran performed in Singapore, he famously did a duet with JJ Lin; he also profiled a watch strap that was made by a local company. So, my question is, were similar cross-marketing opportunities contemplated when negotiating with Ms Swift's team and if not, is it something that the Government can keep in mind for future concert deals?

My second question relates to the disclosure of the terms of the deal that was struck between Ms Swift's team and the Singapore Government. As we have seen in the news, the exclusivity clauses have struck a nerve with some of our neighbouring countries and caused some amount of tension. So, my questions are these: were confidentiality clauses about the exclusivity arrangements built into the contracts and if they were, were these terms breached? And if so, will the Government be taking any enforcement action against the relevant parties?

I thank Ms Usha Chandradas for her comments. On her first question on cross-marketing, obviously where possible, we would endeavour to do so. And that is why we have seen, in the case of Coldplay, having a local opening act. In other cases as well, what we try and do on some occasion is, even if we cannot do it at the main event itself, at the periphery, on non-event days, or in the lead-up or build-up to the A-list event that takes place in Singapore, we try to involve as many local artists as possible. So, you have brought up some examples and we will continue to do so.

In the case of artists, very often the terms and conditions stipulate not just who is performing, their overall set-up, but also the opening act for each of the performers. So, in those cases, we will not be able to change the sequence or change the identity of the performers. But rest assured that when we can, we will endeavour to expose our local artists to such platforms.

On the second point, yes, there is a confidentiality agreement, and we will assess the terms, and we will take the appropriate measures under advisement.

Thank you, Mr Speaker. First, I must thank the Minister for personally leading the Singapore delegation to Los Angeles to negotiate a deal to bring in the Eras tour. I think that is a huge personal involvement on his part and I thank him for that.

I would like to quote the Chairman of KASM, Mr Keith Magnus, who said that there is now a new DNA and passion that has been brought into the operating culture of the organisation, and to quote him, "we are constantly in deal mode." I fully support this basic orientation to go out and make deals and hustle, so, in line with that orientation and to my original question on whether there is a target for the total economic value-add from the concert economy that we are trying to grow in Singapore, could the Minister perhaps shed a bit more light on whether we should consider setting a more tangible target in terms of deal volume, deal flow; even if not economic value-add, the numbers that we expect to see from the concert economy that we are trying to grow in Singapore?

Sir, I thank Mr Xie for his remarks. He has raised an important point, but I think we should also set it in context. When we first considered the idea of taking back the Sports Hub, there were questions around, did we have a team who would be able to engage with some of the world's top artists and promoters? Were we able to do this with large-scale crowds? Not forgetting that as we were embarking on these plans, we were still in the midst of dealing with COVID-19. And so, when we looked at the plans overall, obviously those are factors that had to be taken into account. Eventually, I think it is important for us to work out a broader horizon, mid-term through to long-term, and understand where we want to go in terms of targets. And we will do that.

But I want to stress to Mr Xie that, as I said at the outset of my answer, KASM is not trying to deal with the Sports Hub only for economic return. To us, it is equally important that we have social return to the Sports Hub.  To give you an example of how we have been able to achieve this, we work with top-tier marquee events, obviously high and good revenue-generating events. Coldplay, Ed Sheeran, Jackie Cheung and Taylor Swift, being some examples.

But in doing so and in making that revenue, we are able to plough it back into non-revenue-generating but highly impactful social events. I gave the example of the NSGs taking place at the Sports Hub. Almost three times the number of events compared to the best prior to COVID-19 days. All of that brings a certain feeling and resonance of school athletes to be playing at the top venue in Singapore at the Sports Hub.

I have given this example to the media as well. Last year, we worked with the schools to stage the rugby finals right after the Singapore Sevens. So, we had a pitch that was world-class. We had a venue that was world-class, finished on Sunday with the finals. On Monday or Tuesday, the schools stepped in. And because we were able to host it without the financial restrictions in particular that we had before, we had 8,000 school children at the arena, at the stadium, supporting and cheering on their school. I was there and I think the feeling of camaraderie, the feeling of togetherness, being able to cheer your top athletes at such a forum, is something that we value tremendously.

So, these and other examples are what we want to go for, using the Sports Hub as a draw, as a vehicle, as an asset that Government can use right across the spectrum and also combining it with non-Sports Hub facilities. For example, the rest of Kallang Alive, the precinct which I mentioned, there are parts which can be activated in support of and in tandem with the Sports Hub.

So, all these are the main motivations for KASM when they do their calculations for events for any particular given year.

Thank you, Sir, and I thank the Minister for his reply. I assume he is answering the question that I filed for tomorrow as well.

Sir, given that Singapore is such an attractive destination for marquee events, why is there even a need to give taxpayer-funded grants to attract them? And secondly, did the Government negotiate to make Taylor Swift's Eras Tour the only blank space in Southeast Asia and did it realise that this may be perceived by some of our neighbours as being mean?

Sir, I will try not to make my answer the 10-minute version. Mr Giam filed a question for tomorrow with the Ministry of Trade and Industry (MTI) on STB's position on grants. That will be taken separately; so, I am not answering on behalf of STB.

On the Member's two questions, well, let me deal with the second, which I think is also related to the first question. The real question is this: you have to make your calculations and work out what is in Singapore's and Singaporeans' best interests. If you do not have a certain economy of scale to play in Singapore over "x" number of nights for a period of time, you would not be able to reap the economies of scale. Then, there is going to be a very different balance to the considerations. The concert might take place in Singapore but for far fewer nights, or it might not even take place at all in Singapore.

So, we have got to look at the overall calculation and decide for a particular event, what is the resonance with Singapore, Singaporeans? What international, regional draw might it have? We make this calculation overall and it is not in every case that we decide that we need to make a grant, or we need to negotiate in a particular way. Every event, whether it is lifestyle, sporting, arts, culture or music, has a different consideration. We are motivated by different outcomes that we want to achieve. So, whether we shape it in one way, give a grant in another way, or organise our framework to host the event in a particular way, all that is shaped by the outcomes that we want to achieve.

In this case, we were mindful that if we looked at it holistically, if we wanted an opportunity for Singapore to be one of the stops, and then you look at the past tour history, it is very difficult to be one or two nights alone because of the set-up. So, we had to look at that as quite a material consideration for discussing with the Taylor Swift team on how long and for what duration to host it in Singapore. And then we also have to judge what is the demand that we have in the local market.

So, these, I hope, explain to Mr Giam some of the suite of considerations that we have in deciding how to approach this, which events to put a grant out to, on what terms, how to structure it and also taking into account the overall demand and objectives in Singapore.