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Singapore to increase ICT spending to accelerate Government digitalisation

By Rajiv MenonSingapore
3 min read
Singapore City
Singapore City
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Singapore’s Government Technology Agency (GovTech) will spend up to an estimated S$3.8 billion on info-communications technology (ICT) procurement this year, an almost 10 percent increase from FY20’s procurement value of S$3.5 billion.

This spending will go towards transforming government digital services used by both citizens and businesses and re-engineering government digital infrastructure to support modern application development. It will build on the momentum generated by past years’ investments and serve to lock in the digitalization gains brought about by the COVID-19 pandemic. Small and Medium Enterprises (SMEs) will be able to participate in close to 83 percent of the total potential procurement opportunities.Transforming government digital services for the future

An estimated S$2.7 billion (70 percent out of S$3.8 billion) will be spent on 250 projects to transform, integrate and streamline digital services across different sectors to create a more digitally empowered nation.

Of the S$2.7 billion expected to be spent on digital application services, 44 percent will be developed on the cloud in FY21. Developing applications on the cloud increases agility and innovation, resulting in faster delivery of new public services for citizens and businesses. In addition, leveraging on cloud infrastructure increases resiliency and scalability, leading to better performance during periods of high demand. To date, the government has close to 600 systems on cloud and is on track to have 70 per cent of eligible systems on the cloud by FY2023.

Number of Artificial Intelligence projects to increase

“Of the S$2.7 billion expected to be spent on digital application services, 44 percent will be developed on the cloud in FY21.”

Over S$500 million (13 percent out of S$3.8 billion) will be spent to accelerate the adoption and deployment of Artificial Intelligence (AI) for the public sector. AI can help the Government to deliver better services, make better decisions based on data-driven insights, and optimise operations to increase productivity. To support government agencies in deploying AI, GovTech has built various central platforms to support common use cases in the area of video analytics, natural language processing, fraud analytics and personalization to help agencies reduce the cost of onboarding AI solutions. The central platforms also enable agencies to access common features and enjoy lower cost of management, maintenance and updating of systems.

More projects for SMEs to participate in Govt ICT procurement

The increase in ICT procurement spending will create more opportunities for SMEs, with more than 80 percent of ICT contracts to be made available through streamlined procurement methods. These procurement methods will improve SMEs’ access to Government ICT procurement opportunities. For instance, the government has incorporated dynamic contracting in bulk tenders to allow new suppliers and requirements to be introduced throughout a contract period. Barriers of entry for SMEs are also lowered as government agencies put out more cloud-based services and smaller system projects that allow suppliers with a lower financial grading to bid.

Mr Kok Ping Soon, Chief Executive, GovTech, said: “We are heartened by the results of the G2C and G2B annual survey on Government Digital Services, which are an affirmation of the Government’s commitment to invest heavily in ICT and digital transformation. Providing more opportunities for SMEs to take on government projects is also important, as SMEs have always been the lifeblood of Singapore, and form a key pillar of our Smart Nation efforts. GovTech will continue to innovate to provide seamless and easy-to-use services and improve the resilience and security of our digital platforms for citizens, businesses and public officers.”

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Questions & Answers

Q.

What is the primary reason for the increased ICT spending this year?

A.

The increased spending aims to transform government digital services for citizens and businesses, and to re-engineer government digital infrastructure. It also builds on past investments and secures digitalisation gains from the COVID-19 pandemic period.

Q.

How much of the total ICT budget will be allocated to developing applications on the cloud?

A.

Out of the S$2.7 billion designated for digital application services, 44 percent will be spent on developing applications on the cloud in FY21. This approach enhances agility and innovation for public service delivery.

Q.

How will the government's increased ICT procurement benefit Small and Medium Enterprises (SMEs)?

A.

Over 80 percent of ICT contracts will be available to SMEs through streamlined procurement methods. Barriers to entry are lowered by incorporating dynamic contracting, and offering more cloud-based and smaller system projects for suppliers with lower financial grading.

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