Committee of Supply 2025 debate, Day 1: Shawn Huang on pro-enterprise government procurement

Improving access to government procurement is a win-win for government and businesses. The government benefits from the competition fostered by a wider supplier pool, while more businesses can leverage government contracts to build track records. Senior Parliamentary Secretary for Finance Shawn Huang, who said this in parliament on Friday (Feb 28), announced two new initiatives to enhance Singapore’s pro-enterprise environment. Firstly, it will expand Tender Lite to streamline procurement conditions. Tender Lite for construction contracts will be launched in May to simplify the conditions for closing of accounts or conclusion of the projects. It will share the risks with businesses by capping the liquidated damages at 10 per cent of contract value and remove the need for security deposits. Mr Huang said these changes will help to ease contractors’ cash flow. Tender Lite for ICT contracts will be implemented in phases from the second half of this year. Secondly, the government will make it easier for businesses participating in tenders that require innovative solutions to progress from pilot to deployment at scale. It will introduce an Innovative Procurement Partnership to enable the government to award contracts covering both pilot and subsequent deployment of innovative solutions which are new to the market. This means that businesses can be assured of the opportunity to scale up their innovative product or service if the pilot is successful.