Large Corporations Pulling Out of Sponsoring Local Sports Events

Mr Nicholas Fang asked the Acting Minister for Community Development, Youth and Sports (a) whether the recent pullout by large corporations from sponsorship of local sports events is a cause for concern for the growth of the local sports sector; and (b) what more can be done to help all stakeholders of the Singapore sporting scene, including sports companies and national sports associations, to attract more sponsorship in order to develop a more vibrant and dynamic sports sector.

Mr Chan Chun Sing: Sponsorship brings positive contributions to the sports sector, including greater resources and added vibrancy. To attract sponsors, the Singapore Sports Council (SSC) has been helping National Sports Associations (NSAs) add value to their events by making them broadcast and spectator friendly, and extending the exposure of the event to more consumers. SSC has also created and marketed to corporations a portfolio which comprises events from various NSAs.

Some corporations have responded. Some, like Nestlé Singapore and Canon Singapore, are longstanding supporters of local sports and athletes. Others, such as Standard Chartered Bank Singapore, OCBC Bank and Aviva Singapore, have significantly increased their support for local sports events in recent years. There are also newcomers, such as DBS Bank and Manulife Singapore, which we hope can develop strong and lasting partnerships in the years to come.

Changes of sponsors for individual events over time is to be expected. These could be due to commercial and other considerations. For example, a corporation may not renew a sponsorship deal after meeting its objectives or completing a marketing cycle. Others may have a change in strategic direction and decide to switch to another sport or even a non-sport event.

Beyond looking at individual events, what we need to do is to develop a positive environment for and raise the overall level of corporate involvement in sports. As part of the ongoing Vision 2030 exercise, some recommendations have been developed to raise the value of sports as a means for marketing and corporate development among corporations. These include revamping the events and spectatorship environments to generate more interest amongst fans and spectators, forming competitive corporate leagues in some sports, and encouraging corporate social responsibility through sports. The NSAs and SSC will have to work closely together to implement these recommendations and other initiatives in order to further raise the value of sports to corporations.

Page: 547