May 12
Loh Chee Kong


JUST a week ago, property tycoon Ong Beng Seng was wondering if his dream of bringing the glitzy Formula 1 race to Singapore would come crashing down yet again.

His 18-year-old friendship with F1 supremo Bernie Ecclestone notwithstanding, differences over "the money part" and what the Briton termed as "a bit of pain" in dealing with Singapore officialdom threatened to scupper the long-awaited deal.

ONG BENG SENG: ‘It’s taken us 12 rather difficult months to get to this position Until last week, we didn’t know if this was going to take place at all.’ BERNIE ECCLESTONE: ‘If it wasn’t for him (Mr Ong), there wouldn’t be any possibility of a race in Singapore.

NUTS AND BOLTS OF A GRAND PRIX WHERE • Street circuit at Marina Centre and around Marina Bay. WHEN • From September or early October 2008. • Contract for five years, with option to extend a further five. • Night race most likely. COST • Up to $150 million. • Singapore Tourism Board to foot 60% of the cost, the rest will be taken care of by Mr Ong’s new company Singapore GP Pte Ltd. SPECIAL TAX • Hotels to pay special F1 tax of not more than 30% during race season – raising $15 million to $20 million in revenue. EXTRAS • F1 to generate about $100 million intourism dollars. • Other revenue from ticket sales, merchandising and sponsorship. AUDIENCE • Some 80,000 spectators expected. • Another 500 million people worldwide will watch race on television.

But just a day after a newspaper reported that hurdles remained in Mr Ong's F1 bid, the tycoon made a rare appearance at a press conference, alongside Minister of State for Trade and Industry S Iswaran and Singapore Tourism Board chief executive Lim Neo Chian, to announce the good news – F1 is coming to town next year.

True to his reclusive nature, Mr Ong, dressed casually in a short-sleeved shirt, was fidgety, clearly not comfortable being surrounded by flashing camera lights and a group of eager journalists. But whether he liked it or not, he was the man of the moment.

Speaking from Barcelona via teleconference, Mr Ecclestone, 77, said: "If it wasn't for him (Mr Ong), there wouldn't be any possibility of a race in Singapore. We have five countries waiting to host a round of the championships. It's because of our friendship over the years that he has persuaded me to come to Singapore."

Yet, just days earlier, the fate of Mr Ong's second attempt – he tried but failed to bring F1 to Singapore in 1991 – seemed to be in the balance.

Mr Ong, who is managing director of Hotel Properties Limited (HPL), said: "It's been very trying and challenging. It's been a long road with Bernie on this subject. It's taken us 12 rather difficult months to get to this position

Until last week, we didn't know if this was going to take place at all."

According to Mr Ong, there were many stumbling blocks, not least the commercial aspects – or as he put it, "the money part of it" – of holding a Grand Prix race on a street circuit, which Mr Iswaran said would cost about $150 million.

And in typical Singapore style, they had found a novel way to fund part of the cost. Mr Iswaran said the Government would impose a special F1 tax of not more than 30 per cent on hotel room revenues.

And there were other logistical and safety issues that had to be factored in, especially since the negotiating parties were also considering the possibility of making Singapore the stage for F1's first night race ever, an idea that Mr Ecclestone was keen on.

"I think we can drop the possibility of a day race," said Mr Ecclestone, responding to scepticism over the safety of a night race.

Mr Ong added: "Being a street circuit, we have a lot of leakages, with a lot of office buildings and hotels and generally, whether we could fit everything in with all the F1 requirements."

And then, there was the matter of cutting through the bureaucratic red tape. In fact, the straight-talking Mr Ecclestone said it was "a bit of a pain" to deal with the Government, which would be footing 60 per cent of the $150-million tab.

At this point, Mr Iswaran interjected and said: "Be kind, Bernie, be kind!" – to which Mr Ecclestone responded: "I'm trying to be honest."

The flamboyant Briton, who just a day earlier had struck a 26-million-euro ($53 million) deal for the Spanish city of Valencia to host a street race, added: "It's just that the people in Government have been so, so thorough with it. I tend to do things a little bit more on trust."

While there was speculation that SUTL Group managing director Arthur Tay was also trying to bring F1 here, Mr Iswaran, who has been the Government's pointman in the negotiations, said that Mr Ong – who recently registered a new company, Singapore GP Pte Ltd, to organise the race – was the only person in the running.

Of Mr Ecclestone, Mr Iswaran said: "I would say Mr Ecclestone is a tough negotiator. He calculates but at the end of the day, he's prepared to cut a deal."

According to sources, up until March, the parties were still carrying out feasibility studies. Issues such as sponsorship, broadcasting rights and the timing of the race still had to be ironed out. Even as late as last month, there was still no agreement on how much exposure the "Singapore brand" would get during the F1 race.

So, what was the deal breaker in the end?

According to Mr Ong, it was Mr Ecclestone's visit to the city two months ago, his first in the past "10 or 20 years".

Mr Ong said: "After looking at our city, both Mr and Mrs Ecclestone were actually very impressed. And I think this swung the deal for Singapore."

While Mr Ong preferred to focus on the business aspects of the F1 deal during the 30-minute press conference, the journalists, who don't often get a chance to get up close with one of Singapore's richest men, also wanted to know something more personal: What kept him trying for the past 16 years?

Mr Ong replied: "It's a difficult question to answer. Some personal interests – I like sports. The second thing is I really believe it's good for Singapore. And I think it's also really good for Formula 1 to be in Singapore."

And now that his dream has come true? "Of course, we feel good. Second time around, you know. I'm quite elated at the prospect and I hope I can do a good job of it," came his understated reply.