New scheme for public tenders covering both pilot and deployment phases; simpler tenders for construction, ICT
The changes aim to make government procurement more accessible to SMEs
SINGAPORE businesses will get better access to government contracts with two changes: a new scheme for tenders covering both pilot programmes and wider deployment, and offering simpler tenders to more sectors.
Under the new Innovative Procurement Partnership, the government will be able to award tenders that cover both the pilot and wider deployment of a new solution.
“This means that the business can be assured of the opportunity to scale up its innovative product or service, if the pilot is successful,” said Senior Parliamentary Secretary for Finance Shawn Huang on Friday (Feb 28).
In contrast, the current practice is to have separate tenders for the pilot and deployment phases, meaning that winners of pilot tenders cannot be sure that their solution will be deployed at scale.
Many agencies also require tendering firms to have a track record, hampering startups’ access to procurement opportunities.
The new partnership addresses both issues, said Huang in the Committee of Supply debate on the Ministry of Finance’s (MOF) budget. Details will come in the second half of the year.
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Tender Lite for construction, ICT
Separately, the Tender Lite scheme for government procurement will be extended to construction and infocomm technology (ICT) contracts. Introduced in April 2024, it has simpler conditions and covers tenders of up to S$1 million.
From May, Tender Lite will be made available for construction contracts, and should help ease contractors’ cash flow, said Huang.
Conditions for the closing of accounts will be simplified. The government will also share risks with businesses by capping liquidated damages at 10 per cent of contract value and not requiring security deposits. The defects liability period will also be removed or shortened where possible.
For ICT contracts, Tender Lite will be implemented in phases in the second half of 2025, with industry consultations ongoing.
Since Jan 1, more than 700 Tender Lite opportunities have been published, of which more than 400 have been awarded. Of these, 85 per cent were awarded to small and medium-sized enterprises (SMEs).
In a government survey, more than 90 per cent of respondents said that Tender Lite has made participation in government tenders easier, noted Huang.
Making things easier
MOF is making other moves to improve regulatory efficiency and reduce compliance costs for businesses, as part of the Inter-Ministerial Committee for Pro-Enterprise Rules Review.
For instance, the grace period for businesses to start charging the goods and services tax (GST) will be extended to two months.
Currently, businesses expecting to cross the S$1 million taxable turnover threshold within the next 12 months must register for and start charging GST within a month of forecast. This timeline can be “tight” for some SMEs, said Second Minister for Finance Chee Hong Tat.
The change takes effect on Jul 1, and is expected to benefit 1,500 businesses yearly.
The Inland Revenue Authority of Singapore (Iras) will also progressively expand the requirement for intermediaries to pre-fill income information on behalf of self-employed persons. Some 87 per cent of individual taxpayers currently benefit from pre-filled information.
The government already requires commission-paying intermediaries, such as real estate agencies and insurance providers, to submit income information for their agents. This has benefited more than 100,000 agents.
Iras plans for other intermediaries to do the same, such as private-hire car and taxi operators, as well as delivery platforms.
These moves are part of efforts to simplify rules for businesses and enhance Singapore’s pro-enterprise environment, added Chee.
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