Singapore will spend about S$3.3 billion on information and communications technology (ICT) this year. This is on top of the money it has spent in previous years to improve its digital infrastructure and make services better for people, companies, and government workers.
Over the last five years, the government has spent about S$16 billion on ICT. In both FY 2021 and FY 2022, it was expected that S$3.8 billion would be spent on ICT. In the past, attempts to combine the demand for ICT services through bulk tenders and to update the back-end ICT infrastructure of the government through the cloud have saved money.
“Our ICT investments in the past five years have laid a firm foundation for the next bound of digital government,” said Kok Ping Soon, Chief Executive, GovTech.
He added that the Government will maintain a high level of ICT spending in 2023, as they continue to push ahead with the cloud strategy and find more ways to work closely with the industry through co-developed projects and bulk tenders. Providing opportunities for SMEs to take on government projects is also important, as SMEs form a key pillar of our Smart Nation efforts, he continued.
More than 30% (S$1 billion) of what the government plans to spend on ICT in FY 2023 will go towards developing apps for the Government Commercial Cloud (GCC).
Since the “Cloud First” Strategy was announced in October 2018, about 66% of qualified government systems have been moved to the Government Commercial Cloud (GCC). This makes it possible to reach the goal of 70% by the end of 2023.
In FY 2023, co-developed projects with industry are projected to be worth about 45% (S$1.49 billion) of all spending, up from 27% in FY 2022 and 20% in FY 2021.
Co-developed projects save time and money by using the SG Tech Stack and other government platforms for security compliance and interoperability, as well as reusing well-tested software components to build apps quickly.
Currently, 27 companies are qualified to work with the government on projects using the SG Tech Stack. When the S$0.62 billion Agile Co-Development and ICT Professional Services bulk tender is called in FY 2023, this list of providers will be updated.
In co-developed projects, engineers and developers from the government may oversee building one part while their peers from the private sector build another. This is different from the usual outsourced approach, in which a vendor builds the whole project based on what the government agency wants.
As a result of the Government’s planned ICT spending for FY 2023, a lot more projects will be given out through bulk bids. About 76%, or S$2.5 billion, of the planned spending will go to these projects. In FY 2022, only 27% of the spending went to these projects. By putting together all the requests for the same ICT goods and services, bulk tenders have helped public agencies save money, time, and effort.
This year, there are three important bulk contracts worth a total of S$1.85 billion: Enterprise Software-as-a-Service (SaaS), Hosting Support Services (HSS), and Personal Computers & Printer.
Small and medium-sized businesses (SMEs) still have a lot of chances, as nearly 80% of all procurement opportunities for FY 2023 will be open to SMEs, which is the same as the previous year.
The Ministry of Sustainability and Environment previously indicated that starting in 2024, government ICT contracts will include environmental sustainability criteria.
Suppliers who participate in the forthcoming PC and Printer bulk tender must follow energy and environmental regulations and reuse packaging and materials.
Additionally, GovTech is trying to optimise code reuse for cloud projects in FY 2023 and reduce the carbon footprint of the cloud infrastructure in GCC and government data centres to satisfy BCA-IMDA Green Mark criteria.
