Speaking in Parliament on Monday, Singapore's Minister of State for Trade and Industry, S. Iswaran said that the Government was willing to fund the country's bid to join the Formula One World Championship.

Singapore has been linked with a possible Grand Prix for some time, with the Singapore Motor Sports Association (SMSA) claiming back in 2004 that it would cost the country around $12m-$15m (US) annually to host a race. Just a few days later the SMSA denied reports that it had held talks with Singapore Tourism Board (STB), with the SMSA's president Matthew Lee saying: "Singapore is a small country and hosting a Formula 1 race is not cheap. So I am not too sure if it would be in Singapore's interest to do so".

Previously, Bernie Ecclestone appeared to dismiss the idea, stating: "Singapore is just too close to Sepang. I don't think it is possible."

Then in April 2006, the country's Minister for Trade and Industry, Lim Hng Kiang, admitted that the country's tourism board was "actively" looking at hosting a round of the Formula One World Championship.

"This is a very important proposition," he admitted, "and we have to study the full impact and make a proper evaluation. It's not an easy evaluation to make."

Then, in January this year, it was revealed that Ecclestone had held talks with the relevant parties and Herman Tilke, who visited Singapore last year, had already had his (street) track approved.

"We have been talking to various parties about a race in Singapore," said Ecclestone at the time, "but as it is, nothing has been firmed up yet."

Last week the rumour mill fired up once again, this time with talk of a night race, leading to Ecclestone issuing a denial to Reuters. At virtually the same time, Iswaran was assuring Parliament that the proposal has the Government's backing, providing the project is viable.

"An F1 race is a major financial undertaking for any business venture," he said, according to Today. "It will require the government's financial and other support to be commercially viable. The government is willing to support such a venture up to a level commensurate with the broader benefits to the economy.

"Formula 1 is the third-most watched sporting event in the world, after the Olympics and World Cup," he added. "It is also a glamorous event, one that is attended by sports and entertainment celebrities alike. The attention and 'buzz' that F1 generates will expose Singapore to a very different audience from that in the business and financial world. It is a group we currently do not reach out to. An F1 race could also bring about broader tourism benefits and spill-over gains for associated industries."

However, he made it clear that the Government will not underwrite the entire cost and will be seeking investment from businesses.

"It is not a venture we will support at all costs," he said, "and, certainly, the government cannot do this all alone without the strong support of key stakeholders and interested businesses, including hoteliers."