Formula One's worst-kept secret is out: Singapore will host a leg of the Grand Prix circuit next year, with a race to be held in September or early October. Significantly, the race could well be a first in the 60-year history of F1: It will likely be held at night.

The Singapore Grand Prix will also be one of only three street races on the calendar for next year.

Scarlet Ferraris, sleek silver McLarens and brilliant yellow Renaults will power around a 5.2km street circuit around the Marina Bay area, whizzing by local landmarks such as the Esplanade and City Hall at speeds close to 300kmh.

The only other cities with street circuits are the glamorous European ones of Monaco and Valencia. Singapore's five-year deal to stage the race, with an option for a five-year extension, is a partnership between Formula One Management boss Bernie Ecclestone and Singapore entrepreneur Ong Beng Seng.

It was announced yesterday by the Government, which will foot the lion's share - 60 per cent - of the cost of staging the race each year, which can reach $150 million.

'We are pleased to announce that Singapore will be hosting the F1 Grand Prix from 2008,' Minister of State for Trade and Industry S. Iswaran told a news conference yesterday evening.

He highlighted the benefits of a potential night race: 'It will be unique, different and allow the Singapore event to reach out to television audiences in Asia, Europe and the US.'

But he added that safety would be a paramount concern.

'We will proceed with a night race only if the safety and operational requirements of all parties are fully met. If not, we will revert to a day race.'

If Mr Ecclestone has his way, however, there is no doubt about the timing of the event. In fact, when questioned about it yesterday, he shot back: 'I think we can stop discussing the possibility of the race during the day.'

On safety issues, he said via tele-conference: 'I've spoken to the people who have been checking things out and we have no doubt that there has been no problem at all with the safety.'

So enthusiastic was Mr Ecclestone that he even rapped two F1 drivers - world champion Fernando Alonso, who called a night race 'impossible', and veteran David Coulthard, who described it as 'a gimmick' - who questioned a race at night.

Mr Ecclestone dismissed their concerns out of hand, saying, to laughter: 'Fernando hasn't been around that long to be a judge of these things, and I don't think David will be around driving next year anyway, so we don't have to worry about that.'

Night or day, hosting the event brings Singapore enormous benefits.

For one, it will set tills in the hotel, retail, entertainment and service sectors ringing, to the tune of $100 million per event.

Mr Iswaran agreed that the event would give a strong boost to the tourism centre, but added: 'The hive of activity surrounding the race will create opportunities for individuals and companies alike.'

Quite apart from that, however, is a priceless benefit to the country as a whole: It will cement Singapore's reputation as a global city with a vibrant buzz.

Said Mr Iswaran: 'Singapore is a leading business centre, and our aim is to be a vibrant global city that is abuzz with high-quality entertainment and events.

'A world-class event like an F1 race, with more than 500 million (television) viewers worldwide, will take us closer to this objective.'

The event will be managed by Singapore GP Pte Ltd, a newly incorporated race promotion company linked to Mr Ong, a long-time friend of Mr Ecclestone.

No details of the deal were announced, but by way of comparison, the licensing costs for the Shanghai GP are reported to be more than $40 million a year.

Other costs will come from preparing the circuit - which will involve resurfacing roads, for example - and safety-related and other infrastructure, among other things.

To pay for its 60 per cent share of the cost, the Government will dip into its Tourism Promotion Fund.

But since hotels in the area stand to gain significantly, the Government will try and recoup part of its cost by raising hotel taxes for a limited period of about seven days during the race period.

Hotels are expected to charge more during the race period, and the taxes will be tiered such that track-side ones that will benefit most from the race will pay the highest rate - 30 per cent.

Businesses and hotels in the Marina Bay area, as well as F1 fans, are already licking their chops at the prospect of a race here.

F1 fanatic Dicky Ong, 35, an IT manager: 'Goody. For the last four years, I've been going to Malaysia to watch the Sepang GP. Now it's coming to my doorstep.'