DBS ‘next logical choice’ as Singapore Grand Prix title sponsor: Analysts

SINGAPORE — DBS Bank is the most logical choice to be the next title sponsor of the Singapore Grand Prix if Singapore Airlines (SIA) decides not to extend its partnership, said analysts to TODAY.

On Friday (Sept 15), Formula One, the Singapore Tourism Board and Singapore GP Pte Ltd announced that the 10-year-old Singapore Grand Prix would continue for the next four years.

However, current title sponsor SIA’s contract will be ending this year and it remains to be seen whether it will extend its partnership.

When contacted on Friday, an SIA spokesperson told TODAY that the airline will be reviewing whether to continue as title sponsor.

According to previous media reports, SIA’s title sponsorship was worth about S$10 million per edition.

Although SIA remains the best fit for the Singapore GP, DBS would the “next logical choice”, said Dr Ang Swee Hoon, an associate professor in the marketing department at the National University of Singapore Business School.

“To be a title sponsor of such a big event, the company needs to be firstly large enough to be involved in many international businesses and markets...You can possibly rule out the likes of Keppel, Singapore Power and Sembcorp, which are more locally focused.

“It makes sense for Singapore Airlines to be the title sponsor of the Singapore GP as there’s a natural relationship between the two — the idea of drawing in tourists and having a global exposure... But failing which, DBS would probably be the next logical choice as they’re big enough and are also expanding internationally.”

CIMB economist Song Seng Wun also tipped DBS as the next best choice.

“Honestly speaking, there are only a few local companies that may fit the bill. It probably has to be a bank or a large conglomerate... and I don’t think Sembcorp or Keppel would benefit enough from it.

“It is a huge commitment to sponsor the race, and I suppose DBS probably could afford it.

“It’s also a fairly familiar name in Asia, and they’re trying to make inroads into Europe in wealth management and private banking, so if I had to speculate, DBS would be it.”

According to the Forbes Global 2000 list, which ranks the world’s largest public companies, DBS Group is the biggest company in Singapore, with USS$322.8 billion in assets, followed by OCBC Bank (US$275.1 billion) and Singtel (US$30.9 billion).

Local telco Singtel was the first title sponsor of the Singapore GP, but was replaced by SIA in 2014.

When asked whether it may consider sponsoring the night race again, a Singtel spokesperson said: “We had a highly successful partnership with the Singapore Grand Prix for six years from the inaugural night race in 2008 to 2014. We look forward to seeing another flagship Singapore brand take over the wheel as the title sponsor.”

An OCBC spokesperson also seemingly ruled out the bank’s involvement.

“OCBC is committed to our key sponsorships with Singapore Sports Hub and OCBC Cycle,” said the spokesperson.

“We are most excited about what the funding from the OCBC Bank can do for the Singapore community: Organising a mass sporting event like OCBC Cycle to encourage an active lifestyle and helping the Singapore Sports Hub put together a broad spectrum of grassroots activities as well as international events that could appeal to our citizens and international visitors.”

Meanwhile, a DBS spokesperson told TODAY: “At this time, DBS is focused on sponsorships more aligned to our priorities. These include nurturing and supporting social enterprises, the DBS Marina Regatta and the DBS Singapore Gallery.”

Analysts TODAY spoke to did not rule out a foreign sponsor for the Singapore GP.

“Singapore is very practical when it comes to financial matters, and while we would like to have a Singapore brand name, especially since it’s the Singapore GP, I don’t think there’s any issue with a foreign sponsorship,” said CIMB’s Song.

Deloitte Singapore & South-East Asia’s Sports Business Group Leader James Walton added: “In reality though, besides SIA, there are not many other Singaporean B2C (business-to-consumers) companies that have a significant presence overseas where the branding will help them.”

Walton told TODAY that in light of the challenging times faced by the global aviation industry, it will be interesting to see if SIA decide to renew their contract into 2018 and beyond and, if not, who comes forward.

“There have been rumours about at least one of the local banks being a candidate, and many have questioned whether the organisers can persuade a foreign company to sponsor the race – however, many of the international brands present in Singapore already have extensive global sporting sponsorship programmes on their books or may not fit with Formula One’s existing sponsors.

“There is plenty of time for the organisers to find a new sponsor, and now that the ink is dry on the extension, their focus will surely shift to this subject for the next few months to get a title sponsor in place by May/June 2018 ahead of the next edition.”