Formula One Grand Prix in Singapore?

Gentlemen, start your engines.

Today has identified the two prominent Singapore businessmen on the starting grid to bring the glitz and glamour of the Formula 1 Grand Prix to the island — they are hotel and property tycoon Ong Beng Seng and the developer of the ONE°15 luxury marina club at Sentosa Arthur Tay.

Neither businessmen would confirm or deny their involvement with the eagerly-anticipated race to bring the thrill of world-class motor racing to Singapore.

However, insiders with intimate knowledge of the wheeling and dealing going on confirmed the involvement of Mr Ong and Mr Tay.

Mr Ong is one of Singapore's wealthiest businessmen with diversified interests in the hospitality, property and leisure sectors here and abroad. He was also involved in talks with F1 supremo Bernie Ecclestone in 1991 to bring the world-class event to Singapore's shores.

That plan was scrapped because of concerns at the time over costs and need to build a racetrack.

But this time, the 57-year-old local businessman has proposed a joint venture with Mr Ecclestone to co-manage and co-own the rights to the Singapore leg of the F1 race on a downtown street circuit.

Mr Ong's proposal would mean roping the Singapore Government into investing in the infrastructure to support such a race.

Analysts say this may not be such a far-fetched idea, given that when Bahrain hosted the race in 2005, it not only attracted tourists by the thousands but also netted up to US$100 million ($154 million) from hotel receipts, recreational spending and contracts for local businesses.

But sources told Today that Mr Tay, a late entrant into the race, has made a more attractive offer to Mr Ecclestone, which has prompted a re-evaluation of Mr Ong's bid.

The 50-year-old Ferrari-driving chairman and managing director of SUTL Group, which operates a major lifestyle and leisure business, is believed to have proposed paying Mr Ecclestone's Formula One Management company an upfront hosting fee, believed to be in the region of US$35 million, and to then run the Singapore F1 race as an independent operator.

This is similar to the arrangement in other F1 race venues in Asia such as Sepang in Malaysia. As an independent operator, Mr Tay would be the sole promoter for Formula 1 in Singapore, but would very likely have to attract government agencies or even private investors as co-owners to the rights of the event here.

With millions of dollars at stake, sources told Today that talks are at a "critical" junction and all parties are bound by strict confidentiality and non-disclosure agreements. But the chequered flag is in sight. A decision is expected within weeks and the first race may be in September next year.

If the green light is given – Singapore may make Formula 1 history by being the first country to host a night race on a street circuit. The idea of an F1 race at night has been tossed around since 2000, especially for the Asian legs, to capture a bigger slice of the television audience in European markets.

F1 drivers will also welcome a night race as they get to avoid the afternoon heat and humidity in other Asian venues such as Sepang in Malaysia.

It is understood that a September date is being considered so as not to clash with the F1 race in Sepang, which is usually in March or April.

Source
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