SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE BUSINESS OF MOTORSPORTS IN ASIA SUMMIT ON FRIDAY, 24 SEPTEMBER 2010, 1315 HRS AT SGX AUDITORIUM

Mr Bernie Ecclestone, President and CEO of F1 Management and F1 Administration

Mr Magnus Bocker, CEO, Singapore Exchange

Mr Zak Brown, Founder and CEO, JMI

Distinguished guests

Ladies and Gentlemen

Introduction

I am pleased to be here for the inaugural “Business of Motorsports in Asia” Summit.Clearly, the timing of this summit is not a coincidence.The Singapore SingTel Formula 1 Grand Prix weekend will officially start in a few hours.The festivities have already been in full swing for the past few days and I’m sure many of you will be at the F1 Circuit Park this weekend.

Growing Interest in Motorsports and the F1 in Asia

Motorsports enjoys a large global fan base. For example, the Formula 1 race has strong global traction and is one of the most-watched annual sports series.Last year, it is estimated that it attracted a television audience of about 600 million people across 187 countries - which underscores its economic reach and potential. Foresight Research, a Michigan based market research firm, compiled data on the industry, over five years culminated in a recently released study: "2010: Automotive Marketing Return On Investment". This study shows that a tenth of all new vehicle buyers surveyed attended one or more motorsports races in the 12 months prior to their purchase.Further, a quarter of all new vehicle buyers surveyed watched at least one motorsports race on television in the same period. The motorsports industry, therefore, is a significant platform through which automotive and allied businesses can access a wide global clientele.

The strong interest in the motorsports events, coupled with the growing popularity of the F1, particularly in Asia and the Middle East, bodes well for the future of the industry.Of the two new races joining the F1 season this year, one will be held in Korea next month. This brings the total number of races held in Asia to five, demonstrating the rapidly growing interest within Asia for the motorsports arena. The F1 will serve as a catalyst to help build up the momentum and evoke even more excitement and interest in motorsports for the region.

F1 in Singapore

For Singapore, the Singapore SingTel F1 Grand Prix is the world’s first and only F1 night race. To complement the track action, we have also added on a strong entertainment element to the race each year as we seek to appeal to all the senses of our race goers. For example, this year’s race will see over 300 music artistes and performers to entertain visitors in the circuit park. The highlight of this year’s entertainment is the entertainment performances that we will be holding at the 30,000 capacity open air concert venue at the Singapore Padang field that has the stunning Singapore skyline as its backdrop.The F1, together with the two Integrated Resorts, have been major and transformative developments in our tourism landscape and have helped to significantly brand Singapore as a premier lifestyle destination and a vibrant global city.

In the two years of the F1, more than 190,000 spectators have attended the race, with more than a third being foreign visitors. In addition, the two races brought more than $260 million in tourism receipts. It is a notable achievement, one that was made possible only with the cooperative efforts of our companies such as the Singapore Grand Prix (SGP) Pte Ltd and the government agencies working closely with the Formula One Administration.

F1 provides opportunities for Businesses

The impact of the F1 is far reaching and can be felt beyond the tourism landscape. The F1 has galvanized companies and community groups to ride on its momentum and organize events around the F1 to involve the community and businesses at large. By holding this event in tandem with the Singapore F1 Race, SGX has also recognized that the race provides an opportunity for top companies and their executives to discuss the emergence of motorsports as a major economic contributor to the region.This will help to fuel stronger interests towards the motorsports business in Asia.

Growth of the Motor Sports Industry in Singapore

Many of the motorsports related enterprises already have a base of operations in Singapore. This ranges from Regional Headquarters to R&D centres and manufacturing facilities.Indeed the motor sports industry as a whole in Singapore is expected to grow. With the completion of the Changi Motorsports Hub, we will also have our own 3.7 kilometres long permanent racetrack and a sheltered grand stand with the capacity to hold 20,000 spectators. This exciting new project will be a great boost for motorsports in Singapore by providing a permanent base to groom motorsports talent, promote industry development, host new international events and provide more entertainment and lifestyle options for Singaporeans and tourists.

Conclusion

Motorsports events such as the F1 race offer unprecedented exposure for businesses and in turn, generate opportunities for the region’s key companies.Today’s summit is a good opportunity for companies in the region to network and capitalise on spin-offs brought by the anchoring of the Formula 1 in Singapore.I look forward to more of such events that seize upon the opportunities that have been brought about by the confluence of the rising interest in motorsports in Asia and the excitement brought about by the F1 in Singapore. Let me conclude by wishing everyone an exciting day ahead at the F1 Race.