I refer to the article "Organisers cancel this year’s Singapore Formula 1 Grand Prix in light of Covid-19 pandemic" (June 12) and suggest that we do not renew the contract for the race when it expires in 2021 because of the following three reasons.

1.  It is a huge economic drain for taxpayers. The F1 generates an estimated S$120 million in annual tourism receipts.  If one assumes a generous 30 per cent operating margin, this gives around S$36 million operating profits, some proportion of which will accrue to international hotel chain franchises. To generate these receipts, the Singapore Government subsidises 60 per cent of the reported S$135 million a year in cost to host the night race  — or a subsidy of around $80 million a year — making this a deeply loss-making and subsidised tourist endeavour. In the earlier years, it was an annual S$150 million in organising costs.

2.  The event does not cater to the average Singaporean. Of the annual average of 250,000 spectators reported to attend the three-night event here, only 60 per cent are from Singapore. Furthermore, high ticket prices put viewing the race out of reach for many Singaporeans, who have to contend instead with traffic disruptions and inconvenience caused by it.

3.  The Covid-19 pandemic changes the funding equation. With reduced travel expected for the next few years and the need to draw down on Singapore's reserves during this period, it is time to be prudent with our resources and this is a luxury on which we should not be spending.

Balanced against the above factors is the publicity generated, with 400 million international people viewing the race. 

However, these viewers have seen the Singapore skyline for the last 12 years and by now, the incremental benefit of more exposure to the same group is marginal.  

It is thus time for the curtains to fall permanently on the Singapore F1 after the present contract ends next year.

Have views on an issue or a news topic you care about? Send your letter to voices [at] mediacorp.com.sg with your full name, address and phone number.