Inclusive Procurement and AI-enabled MOF

Ms Denise Phua Lay Peng (Jalan Besar): Chairman, let me speak on two areas where MOF can lead meaningful transformation: inclusive procurement and AI-enabled fiscal governance.

On inclusive procurement, beyond its current emphases on transparency and quality, MOF can better support SMEs with three refinements.

First, faster payments through quicker payment cycles for smaller contracts and milestone-based payments for larger ones, including more regular payments for Progressive Wage Credits. This addresses cash-flow pressures preventing capable SMEs from bidding.

Second, smarter contract packaging by avoiding monolithic tenders where feasible. Disaggregating components like cybersecurity or design allows SMEs to compete in their strengths whilst maintaining programme coordination.

Third, recognising social value in contracts through a points system similar to weightage in sustainability contracts. Modest weight could reward verifiable contributions like skills transfer, disability employment or SME participation. Hence, differentiating proposals that strengthen our societal ecosystem.

On AI-enabled fiscal governance, MOF can harness AI to meet rising transaction volumes and accountability expectations.

First, better forecasting using machine learning to analyse economic indicators, demographics and trade trends for more accurate budget forecasts.

Second, improved compliance through AI-powered smart forms and real-time compliance checkers, strengthening governance whilst reducing administrative workloads.

Third, sharper resource allocation by analysing which programmes deliver greatest public value per dollar. 

By refining procurement and harnessing AI, we can strengthen enterprises, embed social value recognition and ensure fiscal system robustness.