CIMB economist Song Seng Wun said that having an SPV "minimises the risk and drag of finances" of SportSG.
He noted the Government's vision for the Sports Hub is to ride on synergies to develop the Kallang Alive precinct. The project was announced in 2019 and these major plans tie in with the Government's wider Vision 2030 blueprint to "live better through sport" by means of an inclusive and holistic approach at both the community and elite level.
"This (SVP) is a practical solution for a far more challenging venture than what was first envisioned," said Mr Song. "In the medium-to-long run, with the vision of redevelopment of the (Kallang) region and as the area is further developed, I suspect the SVP will grow to have much more staff."
SINGAPORE - Retaining technical expertise, particularly in terms of facilities operations, will be key for the new entity that will take over ownership and maintenance of the Singapore Sports Hub from December, observers told The Straits Times on Saturday (June 11).
The Government on Friday announced that it had moved to terminate its public-private partnership with SportsHub Pte Ltd (SHPL), the private consortium that has been running the $1.33-billion venue since its opening in 2014 to "unlock the potential" of the Kallang area over the next decade.
Mr Lim Teck Yin, chief executive of Sport Singapore (SportSG) said that a new special purpose vehicle (SPV) would be set up to run the 35-hectare facility.
He also pledged that all current 26 full-time SHPL staff would have an opportunity to join the entity should they so wish.
Former SHPL chief Oon Jin Teik, who left the post in 2019, said this was crucial given the complexity of running of the multi-purpose facility. It comprises the 55,000-capacity National Stadium, the OCBC Aquatic Centre, a multi-purpose indoor OCBC Arena and also the 41,000 sq m Kallang Wave Mall, as well as the Indoor Stadium which was built in 1990.
In addition, there are also plans to integrate it with the upcoming Kallang Alive project, which will see the building of the Kallang Football Hub, Singapore Tennis Centre and a redevelopment of the Kallang Theatre among others.
"This handing and taking over is not straightforward... Institutional knowledge is very important," said Mr Oon.
While he agreed with this, one source close to SHPL, who spoke to ST on condition of anonymity, suggested that the Government ought to set a mid-term target to get Singaporeans to learn how to manage the facility.
The technical challenges include operating the domed roof of the National Stadium - whose 312m diameter makes it the largest in the world.
Said the source: "In the early years, there was a more urgent need for expertise from abroad. But the stadium has been here for eight years, and I believe there needs to be a skills transfer to build up a Singaporean core."
Mr James Walton, sports business group leader for Deloitte South-east Asia, said that aside from retaining talent and personnel, another key area for national agency SportSG to resolve before the full takeover is the existing agreements, be it with sub-contractors or with the programme calendar.
Much of the Hub's operations - from catering to cleaning - are sub contracted to third parties.
"There's the factor that some events are planned, and some recurring agreements that are in place that need to be looked at and honoured going forward..." he noted. "There are a lot of areas to think about in the transition but principally it's about SportSG having an expertise in areas which they have some (already)... but will need further of."