SINGAPORE - Longstanding rules are being changed to make it cheaper and easier for smaller businesses to take part in government tenders.
Companies with yearly revenues below $5 million no longer have to produce their audited financial statements when bidding for government projects, said Senior Minister of State for Trade and Industry Chee Hong Tat on Thursday (Aug 16).
This will make it cheaper for small and medium-sized enterprises (SMEs) to take part in tenders, he said on the sidelines of a Singapore Business Federation meeting.
Come October, businesses will also not have to affix company stamps on government forms, including on tender-related documents submitted through government procurement portal GeBiz. This is unless the stamps are required by legislation.
These stamps were needed for identity verification in the past, but the digitisation of services has meant that other forms of checks like digital platforms and signatures are available.
The change follows a review by the Ministry of Trade and Industry's (MTI) Pro-Enterprise Panel, which found that companies deemed it "cumbersome and time-consuming" to download, print, physically stamp, and then scan documents back to agencies via e-mail.
"Upon receiving the feedback, the Pro-Enterprise Panel worked with 28 regulatory agencies and got their agreement to do away with this requirement," said Mr Chee. "It reflects a perspective of moving in tandem with times. When technology changes, we also have to change the way we regulate, and the rules that we have."
Separately, the change in requirements for financial statements got underway in June.
Firms looking to participate in government tenders needed audited statements of accounts to renew their Government Supplier Registration in the past, but this is no longer the case.
On whether this relaxation involved any risks, Mr Chee said that smaller firms tend to bid for lower-value contracts, and will have to build up a good track record and accumulate more resources before being able to apply for bigger contracts that are higher in value.
The change is expected to benefit some 3,900 suppliers here, based on the number of registered suppliers who have participated in past government tenders. There are over 200,000 SMEs in Singapore.
"It brings cost savings and more importantly, I think it brings a lot more participation from SMEs in the procurement process or tender process as well," said Association of Small and Medium Enterprises president Kurt Wee.
Small enterprises said they support the move, with business manager of E-xlusif Medical Supply Sharon Law having written to several agencies to call for the requirement of audited records to be abolished as it weighs on small firms with fewer resources.
Ms Marilyn Tan, director of furniture company Harvest Link International, added that this will save her firm thousands of dollars in audit fees annually. Government-related projects make up about 30 per cent of her business.
"Expenses are a factor but it is also very cumbersome and staff cost involved is high," said Ms Tan of the audit process. "It can take up to three or four weeks and SME employees have many other roles to handle at the same time."
On Thursday, the Singapore Business Federation also announced that its SME Committee, to be chaired by Mr Wee, will extend advocacy efforts beyond the Government to businesses and the workforce.
It aims to work closely with other trade associations and chambers as well, and will focus on programmes that help SMEs improve their capabilities, said the federation.
The committee will be advised by Mr Chee, Minister of State for Manpower Zaqy Mohamad, chairman of BRC Asia Teo Ser Luck and its former head Lawrence Leow, who is chairman of Crescendas Group.
