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Singapore: Govt to Ensure Fair Procurement System |
| Source: |
channelnewsasia.com |
| Source Date: |
Friday, March 02, 2012 |
| Focus: |
Institution and HR Management
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| Country: |
Singapore |
| Created: |
Mar 05, 2012 |
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SINGAPORE: Helping Small and Medium Sized Enterprises (SMEs) and low-wage workers are among the issues that dominated Friday's Committee of Supply debate for the Ministry of Finance.
Josephine Teo, Minister of State for Finance and Transport, grouped the questions and cuts filed by members into three areas - facilitating businesses, ensuring efficiency and effectiveness in the government, and nurturing a caring society.
Referring to suggestions made by Ms Jessica Tan and Ms Tan Su Shan in relation to simplifying the Productivity and Innovation Credit (PIC) Scheme and "making it more accessible to SMEs", Mrs Teo emphasised that the scheme is "designed very much with small businesses in mind" and "does not require an ocean of paperwork."
But she said more will be done to step up outreach efforts to SMEs as the PIC is a relatively new scheme.
Mrs Teo added the Inland Revenue Authority of Singapore (IRAS) will start a news series of PIC clinics which offer one-on-one consultations to businesses in partnership with five major businesses chambers and associations.
These are the Enterprise Development Centres at the Association of Small and Medium Enterprises, the Singapore Manufacturers' Federation, the Singapore Chinese Chamber of Commerce and Industry, the Singapore Malay Chamber of Commerce and Industry and the Singapore Indian Chamber of Commerce and Industry.
IRAS will also focus on "small and micro enterprises operating in HDB neighbourhoods through a new programme organised jointly with the Community Development Councils", and engage service providers like IT vendors and software providers so that they can become familiar with the PIC and help their customers benefit from it.
From this financial year, taxi companies will also be allowed to claim PIC on the training of taxi drivers, along with other self-employed persons like insurance agents, real estate agents and financial advisors.
Mrs Teo also gave assurance that the government systemically reviews the risks in its overall portfolio.
This is in response to a question by Mr Inderjit Singh on overlaps in GIC and Temasek's portfolios, which may lead to concentration risks in the overall government portfolio.
Mrs Teo also emphasised that MAS, GIC and Temasek, "operate at different parts of the investment spectrum, even if there is some overlap".
In terms of procurement compliance in public agencies and fraud risk, Mrs Teo said the Accountant-General's Department conducts regular Value-For-Money audits on the expenditures of public agencies. She added that public agencies are also reminded to "adopt good practices such as the periodic rotation of officers with procurement responsibilities".
Mr Vikram Nair asked for more details on the government's best sourcing initiative. Referring to sectors where certain job functions are outsourced, Mr Vikram Nair said the side effects of competitive tender is "a downward pressure on the wages of the workers in those outsourced functions".
To uplift these wages, Mrs Teo said the government will spearhead the best-sourcing initiative by making it "mandatory for all government agencies, which include ministries and statutory board, to procure only from accredited contractors".
She added that the Ministry of Manpower is working closely with NEA and MHA to enhance their cleaning accreditation and security grading schemes. This is aimed at raising the "productivity and professionalism of low wage jobs, as well as to help workers earn high wages and enjoy better employment terms".
"The government hopes that by taking the lead, we provide a strong signal to the entire private sector to embrace Best Sourcing Initiative and help in this national effort to uplift low wage workers," said Mrs Teo. But she added that the government alone cannot transform the cleaning and security sectors, as government contracts cover just about 10 per cent of the cleaning workforce for example.
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Singapore: Govt to Ensure Fair Procurement System Helping Small and Medium Sized Enterprises SMEs and low-wage workers are among the issues that dominated Friday's Committee of Supply debate for the Ministry of Finance
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