Who is Ong Beng Seng, the billionaire involved in Iswaran’s graft case?

FORMER transport minister S Iswaran was charged on Thursday (Jan 18) with, among others, corruptly obtaining gratification from hotel and property tycoon Ong Beng Seng.

Who is Ong Beng Seng?

Popularly known by his initials OBS, Ong, who is Malaysian and has a degree in insurance, earned millions of dollars from accurately predicting the ups and downs of oil prices during his time at Kuo International, an oil trading company owned by his father-in-law Peter Fu Yun Siak. He joined the company in 1975, and the capital he earned during his time there allegedly helped finance his later investments and property development.

He and his Singaporean wife, Christina Ong, rank among one of Singapore’s wealthiest couples, and were estimated by Forbes to have a net worth of US$1.7 billion as at August 2022.

The hotel and property tycoon is known for being one of those responsible for first bringing the Formula 1 night race to Singapore in 2008, and owns the rights to the Singapore Grand Prix.

Iswaran is also widely credited for playing a vital role in the country’s bid to host the Grand Prix since 2008. Then a junior trade minister, he was involved in negotiations with parties including Ong’s Hotel Properties Ltd : H15 0% and then global F1 boss Bernie Ecclestone.

In 2022, Ong, through his company Singapore GP, and Singapore’s tourism agency secured an extension to host the race through 2028. Singapore GP is the race promoter for the Grand Prix.

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What is HPL involved in?

In 1980, Ong founded HPL to buy the Hilton Singapore hotel for S$72 million, marking his venture into the property, hotel and retail sectors. The company swiftly acquired more hotels and properties, especially those located in the prime Orchard Road area.

Now, the Singapore-listed company is a conglomerate with interests in hotel ownership, management and operations, property development, and investment holdings.

As at December 2022, the group’s hotel division had a portfolio of 38 hotels and resorts across 15 countries including Singapore, Italy, the Maldives and Vanuatu. Brands within its portfolio include Four Seasons Hotels and Resorts, Hard Rock Hotels and Marriott International.

Its latest acquisition is Kanuhura Maldives, which is undergoing major refurbishments and is expected to open under the management of Six Senses Hotels & Resorts in H2 2023.

HPL’s Singapore portfolio of prime commercial and retail properties comprise Forum The Shopping Mall and Concorde Shopping Mall. The group used to own seven units in Ming Arcade, which it agreed to sell for S$61 million in December 2022.

Its luxury residential developments in Singapore include Cuscaden Residences, Four Seasons Park and Nassim Jade.

In 1996, the Nassim Jade development was at the centre of a controversy. Questions had been raised about discounts given on units purchased by then senior minister Lee Kuan Yew and then deputy prime minister Lee Hsien Loong at the time.

The father and son said they had not been aware of the discounts on the units, and they eventually donated the discounted amounts to charity. Then prime minister Goh Chok Tong cleared both men of wrongdoing.

What are some of Ong’s past dealings?

In May 2022, HPL, in partnership with units of Singapore investment company Temasek, purchased the real estate assets of media giant Singapore Press Holdings for S$2.8 billion.

Other instances when Ong previously mounted challenges for Singapore-listed companies in partnership with Temasek-linked entities include his 2002-2003 bid for steelmaker NatSteel, through a consortium led by Ong. The consortium, which also involved Temasek, narrowly won control of the company following a battle with Indonesian business tycoon Oei Hong Leong. In August last year HPL said it had received the grant of provisional permission from the Urban Redevelopment Authority to redevelop Forum The Shopping Mall, voco Orchard Singapore and HPL House under the Strategic Development Incentive.

The approval is for a mixed redevelopment comprising hotel, retail, office and residential components, as well as a rooftop garden, a performance theatre and a basement car park.