Committee of Supply 2024 debate, Day 1: Indranee Rajah on prudent use of public funds and strengthening Singapore’s competitiveness and hub status
The Government seeks to achieve prudent spending with good outcomes, which is value for money, said Second Minister for Finance Indranee Rajah. Speaking in Parliament on Wednesday (Feb 28), she pointed out that Government expenditure as a share of GDP is about 18 per cent, which is among the lowest across advanced economies. At the same time, Singapore is ranked highly on many economic and social indices. Ms Indranee said as Singapore’s spending needs rise, the Government will continue to manage its expenditure growth carefully. There are mechanisms to evaluate spending and reallocate resources. The Government also constantly strives to optimise its spending, she said. Firstly, for large expenditure items such as major infrastructure projects, the Ministry of Finance (MOF) applies additional scrutiny to evaluate their worthiness and cost-effectiveness. Secondly, Government programmes are subject to evaluation and reviews to ensure that their purposes are met. Ms Indranee said the public sector is committed to ensuring that its processes are kept lean and efficient, while providing ample guidance and ensuring sound governance for public officers to respond in an agile and nimble manner. Turning to questions on strengthening Singapore’s competitiveness and hub status, Ms Indranee said Singapore has built an international reputation as a reliable and trusted hub for business and trade. A key enabler is to have a strong and robust accountancy and audit ecosystem. But the sector has faced manpower challenges in recent years. MOF set up the Accountancy Workforce Review Committee in 2022 to study these challenges and build a sustainable pipeline of local accountancy talent. The committee expects to issue its recommendations in the coming months. Another key competitive advantage of Singapore’s business hub is its pro-business and pro-trade stance, said Ms Indranee. MOF continually works to enhance its trade processes to facilitate the flow of goods and reduce regulatory costs for businesses. Singapore Customs has played a leading role in developing the Mutual Recognition Arrangement (MRA) signed by all ASEAN member states. The MRA will recognise each member state’s Authorised Economic Operators (AEOs). Under this arrangement, AEO companies will enjoy faster documentary and cargo clearance for the movement of goods within ASEAN. A six-month pilot has commenced with six ASEAN member states. They aim to implement the arrangement in the third quarter of this year. “By improving and streamlining our trade processes, we are also strengthening Singapore’s position as a global trade node,” said Ms Indranee. “MOF is committed to ensuring fiscal sustainability, prudent spending and achieving good value-for-money outcomes for the benefit of current and future generations,” she added.
The Government seeks to achieve prudent spending with good outcomes, which is value for money, said Second Minister for Finance Indranee Rajah. Speaking in Parliament on Wednesday (Feb 28), she pointed out that Government expenditure as a share of GDP is about 18 per cent, which is among the lowest across advanced economies. At the same time, Singapore is ranked highly on many economic and social indices. Ms Indranee said as Singapore’s spending needs rise, the Government will continue to manage its expenditure growth carefully. There are mechanisms to evaluate spending and reallocate resources. The Government also constantly strives to optimise its spending, she said. Firstly, for large expenditure items such as major infrastructure projects, the Ministry of Finance (MOF) applies additional scrutiny to evaluate their worthiness and cost-effectiveness. Secondly, Government programmes are subject to evaluation and reviews to ensure that their purposes are met. Ms Indranee said the public sector is committed to ensuring that its processes are kept lean and efficient, while providing ample guidance and ensuring sound governance for public officers to respond in an agile and nimble manner. Turning to questions on strengthening Singapore’s competitiveness and hub status, Ms Indranee said Singapore has built an international reputation as a reliable and trusted hub for business and trade. A key enabler is to have a strong and robust accountancy and audit ecosystem. But the sector has faced manpower challenges in recent years. MOF set up the Accountancy Workforce Review Committee in 2022 to study these challenges and build a sustainable pipeline of local accountancy talent. The committee expects to issue its recommendations in the coming months. Another key competitive advantage of Singapore’s business hub is its pro-business and pro-trade stance, said Ms Indranee. MOF continually works to enhance its trade processes to facilitate the flow of goods and reduce regulatory costs for businesses. Singapore Customs has played a leading role in developing the Mutual Recognition Arrangement (MRA) signed by all ASEAN member states. The MRA will recognise each member state’s Authorised Economic Operators (AEOs). Under this arrangement, AEO companies will enjoy faster documentary and cargo clearance for the movement of goods within ASEAN. A six-month pilot has commenced with six ASEAN member states. They aim to implement the arrangement in the third quarter of this year. “By improving and streamlining our trade processes, we are also strengthening Singapore’s position as a global trade node,” said Ms Indranee. “MOF is committed to ensuring fiscal sustainability, prudent spending and achieving good value-for-money outcomes for the benefit of current and future generations,” she added.
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