THERE is nothing to suggest, as of now, that either the F1 Singapore Grand Prix or other contracts were structured to the disadvantage of the government, the Ministry of Trade and Industry (MTI) said on Thursday (Jan 18).

“The terms of all the agreements were considered carefully by the government. There was an independent consultancy study,” MTI said.

All preparations for the 2024 edition of the race – scheduled for Sep 20 to 24 – are on track, MTI added.

This came after former transport minister S Iswaran was handed 27 charges in court on Thursday. The court heard that the charges are two counts of corruption, 24 counts for obtaining items from someone he had business dealings with as a public servant and one for obstructing the course of justice.

Most of the charges he faces involve tycoon Ong Beng Seng, who is often credited for bringing F1 to Singapore in 2008. Singapore GP, a company controlled by Ong, has the rights to the Singapore Grand Prix.

Iswaran, who was also minister-in-charge of trade relations at MTI, had been actively involved in the government’s F1-related engagements.

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Sometime in September 2022, Iswaran had allegedly corruptly obtained from Ong gratification – 50 tickets to the 2022 race across different ticket types – with a total value of about S$145,434, as inducement for advancing Ong’s business interests in matters relating to a contract between Singapore GP and the Singapore Tourism Board (STB).

He also allegedly obtained from Ong gratification – flights and a hotel stay – valued at S$20,848.03 in December 2022 for advancing his business interests in matters relating to a contract between Singapore GP and the STB, and a proposal for a contract with the STB.

The former minister has pleaded not guilty to all 27 charges.

MTI said that F1 has brought “substantial benefits” to Singapore since its 2008 debut. It has attracted more than 550,000 international visitors to Singapore and generated around S$2 billion of incremental tourism receipts.

The race has also raised Singapore’s reputation as a vibrant global-Asia node, the ministry said. It noted the Singapore Grand Prix’s global audience of over one billion viewers between 2008 and 2022, and added that many international business events have been organised around it.

Beyond tourism, the annual race has also benefitted many local companies involved in the race, such as those in logistics, transport, construction and engineering services, the ministry said.

MTI also said that more than 1,000 students from Institutes of Higher Learning and polytechnics are trained for roles around the circuit park every year.

Limited impact

Observers agreed that the case against Iswaran is unlikely to impact F1’s operations and attractiveness in the future.

“Fans, spectators, sponsors and other stakeholders are interested in the entertainment value of the entire event,” said Singapore Management University associate professor of law Eugene Tan. “Unless graft is affecting the wow element and the quality of the event, the corruption case against Mr Iswaran will not move the needle at all.”

Singapore is a unique and special F1 venue in the race calendar, said Maybank economist Chua Hak Bin. “The electrifying atmosphere, night race and large turnout is difficult to replicate anywhere else. F1 fans are interested in the race and experience, not in the politics.”

On international business events organised around the race, Tan said businesses are “unlikely to be discouraged by this scandal”.

The case will raise the standards of governance in running events such as F1, he added.