Singapore in Hot Water With ASEAN Over Taylor Swift ‘Bribe’

Superstar paid millions to appear in Lion City, Thai PM says

Singapore is finding itself in an embarrassing spot with its ASEAN partners, some of whom have accused the island republic of paying a “bribe” of US$2 million to US$3 million to lure superstar entertainer Taylor Swift for the only concert in the region, in possible contravention of World Trade Organization regulations outlawing subsidies to attract industry. Swift is performing six nights of her Eras Tour at Singapore’s National Stadium from March 2 to 4 and March 7 to 9, making them her sole Southeast Asian appearance.

If indeed the government paid Swift that amount, which Edwin Tong, Singapore’s Minister for Culture, Community and Youth, denied in parliament today, without giving an amount, Singapore got a bargain. Up to 300,000 Swift fans, many flying in from other countries including Thailand, Indonesia, and the Philippines, have purchased tickets to the concerts. Her only other Asia stop was four shows in Japan in February. It is estimated that the 35-year-old singer’s concerts could contribute up to S$500 million (US$372 million) in additional revenues, from air tickets and hotel bills, food and beverage and souvenirs, to Singapore’s economy.

The government promptly said it would launch a search for the person who leaked the terms of the contract, in which a confidentiality clause had been included. Tong told Parliament today, March 4, that the government is now “taking appropriate measures under advisement” over the leak.

Tong also appeared to reveal that Swift’s appearance isn’t the only one the government has paid to lure to the city state. “Our aim is to bring a whole spectrum of events to (the Kallang stadium) for Singaporeans, from top-tier marquee events to community-related ones — from music concerts to sporting as well as social events,” he said in his remarks to parliament. The Kallang Sports Hub, taken over by the government in 2019, has seen a 30 percent increase in sports, entertainment and community and lifestyle event days from 2019, he said. Other acts have included the British rock band Coldplay, which appeared in Manila on January 20, and the US group Mayday Parade, Tong said, which appeared in Manila last October 27, as well as marquee sporting events.

“While we cover a range of top-tier events that are ticketed, there is also a range of non-ticketed and non-revenue generating events, such as the large-scale festivals during Chinese New Year, last year for Hari Raya, and Deepavali,” he was quoted as saying.

“A subsidy granted by a WTO member government is prohibited by the Subsidies Agreement if it is contingent, in law or in fact, on export performance, or on the use of domestic over imported goods,” according to the WTO’s regulations as of January 1, 1995. “These prohibited subsidies are commonly referred to as export subsidies and import substitution subsidies, respectively. They are deemed to be specific and are viewed as particularly harmful under the Subsidies Agreement and US law.”

The contract with the pop icon became known on February 16 when Thai Prime Minister Srettha Thavisin told the iBusiness Forum 2024, held at the Queen Sirikit National Convention Center in Bangkok, that he had learned of the arrangement from the Anschutz Entertainment Group (AEG). “If I had known this, I would have brought the shows to Thailand,” Srettha was quoted as saying in the Bangkok Post. “Concerts can generate added value for the economy.”

“Caught out by the Thai Prime Minister in screwing the “special ASEAN relationship?” Singapore now wants to retaliate against whistleblowers?” a Malaysian political economist asked.

Word made its way across the South China Sea, where Philippine legislator Joey Salceda called on the government of President Ferdinand Marcos Jr. to question Singapore about the reported grant, saying such behavior is “not what good neighbors do.” There is also grumbling in Hong Kong over the fact that the city, often in competition with Singapore as Asia’s global hub, didn’t lure the Swift concerts. Kevin Yeung Yun-hung, Hong Kong Secretary for Culture, Sports, and Tourism, told lawmakers he would consult with event organizers and venue managers on how to attract more talent to the fading city.

Singapore Swifties. Photo from TODAY

Kenneth Jeyaratnam, the leader of the opposition Reform Party, warned that the government, with the admission that it had paid to entice Swift to perform exclusively in Singapore, could kick off a bidding war across the region for such entertainers. The government, he said, “may feel smug that it's pulled off a coup here by bribing Taylor Swift to only perform in Singapore, particularly as the additional spending by visitors far outweighs the subsidies (a phenomenon dubbed 'Swiftonomics'). However, even a cursory knowledge of game theory will tell you that this kind of strategy only works if the game is played once only. In repeated games other players will retaliate, the bribes will get bigger and there may be other sanctions, and the only winner will be Taylor Swift.”

Swift and Singapore are likely not alone. The entertainment industry is a global commodity driving economic growth, “providing a tremendous number of jobs, and generating nearly US$2 trillion annually,” according to a study by the California-based Pepperdine University. At a micro scale, according to the travel e-commerce platform Klook Vietnam, quoted on the website VN, a combo tour package to Singapore for two to see the entertainer includes two tickets for the show and a night stay at either a four-star or a five-star hotel with ticket prices ranging from US$411 to US$3,773, depending on the hotels. More than 600,000 accounts from all over the world queued to purchase the combo packages, according to statistics by Klook. The packages sold out within six hours.

Swift has become a cultural whirlwind, generating what has come to be called ”Swiftenomics” with her ability to pull vast amounts of ancillary income wherever she travels. She is believed to have pulled in millions of extra viewers to the US Super Bowl football game in February by her presence after it became known she is dating one of the Kansas City Chiefs football players. Her Eras Tour has grossed more than US$1 billion, the highest in history. Its concert film alone, released to theaters worldwide on October 13, 2023, has grossed over US$250 million to become the highest-grossing ever. Music Business Worldwide remarked that she entered a "new stratosphere of global career success" in 2023. with 14 Grammy-winning records. She has sold 75,699,207 million albums at last count at a time when album sales have cratered as music fans go to streaming music instead. Her final Australian appearance last week drew 81,000 fans.