SINGAPORE - The economic fallout from the coronavirus outbreak has underscored the importance for Singapore to ensure its long-term fiscal sustainability, Second Minister for Finance Lawrence Wong said in Parliament on Friday (Feb 28).

"Our prudent fiscal strategy has provided us with the resources to respond promptly and decisively to crises, and also to continue investing for the future and the long term," he said during the debate on the Ministry of Finance's budget.

Deputy Prime Minister Heng Swee Keat announced in the Budget statement on Feb 18 that the Government will set aside $6.4 billion to implement measures to help Singapore combat the fallout of the virus outbreak.

Members of Parliament such as Mr Saktiandi Supaat (Bishan-Toa Payoh), Mr Liang Eng Hwa (Holland-Bukit Timah) and Ms Foo Mee Har (West Coast) had asked about the Government's spending and its accountability during the Budget debate.

Mr Wong, who is also National Development Minister, said that Singapore had built its resources over several decades as a result of judicious fiscal policies put in place by Singapore's pioneers.

The Republic is a small country with no natural resources, and it is exposed to global forces beyond its control, Mr Wong noted. It is thus important for Singapore to continue with its sound fiscal approach to maintain its strong financial position.

Singapore's investment in economic transformation is starting to bear fruit, he said in response to Ms Foo whohad asked about the measures Singapore used to track the successes of business investments.

Mr Wong said that, in the last three years, overall productivity growth, as measured by real value-added per actual hour worked, rose to 2.6 per cent per year, up from 2.2 per cent in the preceding three-year period.

The Government will also be inviting industry experts to form an infocomm technology (ICT) advisory panel to evaluate major government projects and ensure their cost-effectiveness, Mr Wong said.

This initiative builds on the success of an earlier project that called on technical experts from academia and the private and public sectors to review large infrastructure projects before they are given the go-ahead.

"Over the past five years, these processes have led to design improvements and generated savings of about $3.5 billion for infrastructure projects," Mr Wong added.

So far, through the review processes for ICT projects, the Government has managed to save $900 million - or 6 per cent - over the past five years, and he hopes that the upcoming panel will further ensure cost-effectiveness.

But the best way to ensure prudence and effective spending is to instill a value-for-money mindset in every public officer, Mr Wong acknowledged, in a nod to Ms Foo's and Mr Liang's suggestions.

"This is a continual work-in-progress, but we have seen improvements over the years," he said.

One way is to set outcome-based measures like how the Ministry of Transport (MOT) has done by using the percentage of commuters' journeys completed within 45 minutes as a key performance indicator, Mr Wong said. The MOT also conducts value-for-money workshops for officers to share ideas and best practices.

Mr Wong said that the MOF will continue to strengthen its system of checks and balances, and to instil discipline in public officers to make sound spending decisions.

He added: "MOF will spare no effort, as we work agencies to ensure that the Government remains responsible, open and accountable in our use of public funds."