Reviewing F1 Contracts with Singapore Government and Strengthening Guidelines for Investment-oriented Agencies that Engage with Private Entities

Mr Edward Chia Bing Hui asked 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 asked 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.

Mr Speaker, my response today will also cover the questions filed by Assoc Prof Jamus Lim for a subsequent Sitting. If the Member is satisfied with the response, he may wish to withdraw the question after this session.

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 for me to do so.

Mr Edward Chia asked if the Singapore Tourism Board (STB) 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. Assoc Prof Jamus 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.

In 2007, 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.

The Ministry of Trade and Industry (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.”

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.

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.

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 to related Parliamentary Questions later.

Thank you, Speaker. Just one question for the Minister. Which agency is reviewing the F1 contract that the Minister shared in her speech – is it the Ministry itself or is it possibly the Auditor-General's Office (AGO)?

MTI is leading in this review and we may involve other agencies in the process.

Just a quick clarification on my part. Can I confirm that the Government will be reviewing any other contracts that it has with Mr Ong's companies, over and beyond the F1?

Mr Speaker, I am not aware that the Government has contracts with Mr Ong Beng Seng's companies that are of the same nature and relevance.

Thank you, Mr Speaker. I thank the Minister for her reply. Has the Ministry conducted any assessment of any potential impact of the case on investors confidence in Singapore?

We have not detected any reservations or any impact, but we will keep a very close eye and will respond quickly, expeditiously and robustly, if need be.