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Singapore-Australia Free Trade Agreement (SAFTA) - a business guide

Chapter 5:  Bidding for Singapore Government contracts (government procurement)

SAFTA ensures that Australian firms will have more secure access to Singapore’s government procurement market.  Although Australia is not a party to the WTO Agreement on Government Procurement (GPA), Singapore will match for Australia its commitments under GPA, guaranteeing non-discriminatory national treatment for Australian firms in tendering for government business with 47 Singapore ministries, agencies and statutory authorities, listed below.  SAFTA guarantees this access without the limits on thresholds and product coverage that are included in GPA.

Under SAFTA, Singapore is also committed to providing opportunities for government procurement to be undertaken through electronic means, or e-procurement.  Intellectual property and confidential information supplied in tender processes will be protected.

There are three different types of government tender: open, selective or limited.  Tender notices are posted on the Internet at the Government Electronic Business (GeBIZ) website.  GeBIZ also contains information on tender bids and tender awards.

Singapore ministries, agencies and statutory authorities bound by SAFTA provisions

Agency for Science, Technology and Research

Attorney-General’s Office

Auditor-General’s Office

Board of Architects

Building and Construction Authority

Cabinet Office       Civil Aviation Authority of Singapore

Economic Development Board

Housing and Development Board       Info–communications Development Authority of  Singapore    Inland Revenue Authority of Singapore      International Enterprise Singapore

Istana

Judicature    Jurong Town Corporation

Land Transport Authority of Singapore

Maritime and Port Authority of Singapore

Ministry of Community Development and   Sports

Ministry of Defence

Ministry of Education   Ministry of Environment

Ministry of Finance      Ministry of Foreign Affairs

Ministry of Health

Ministry of Home Affairs

Ministry of Information, Communications  and the Arts

Ministry of Law

Ministry of Manpower

Ministry of National Development      Ministry of Trade and Industry

Ministry of Transport

Monetary Authority of Singapore

Nanyang Technological University     National Parks Board

National University of Singapore

Parliament     Presidential Councils

Prime Minister’s Office    Preservation of Monuments Board

Professional Engineers Board   Public Transport Council

Public Service Commission

Sentosa Development Corporation

Singapore Broadcasting Authority

Singapore Tourism BoardStandards, Productivity and Innovation  Board

Urban Redevelopment Authority

SAFTA opens new opportunities for SMEs

Diversifying Intilligence Pty Ltd

SAFTA creates a more liberal, transparent and predictable environment for Australian small and medium enterprises (SMEs) wishing to export goods and services to Singapore.  This makes it easier for them to do business in, and with, Singapore.  SAFTA also provides new opportunities for Australian SMEs to sell their services to both business consumers and the Singapore Government.  It guarantees non-discriminatory national treatment in tendering for Singapore Government business with 47 Singapore ministries, agencies and statutory authorities.  In addition, Singapore is committed to providing opportunities for government procurement to be undertaken through electronic means, or e-procurement. 

Intilligence Pty Ltd (Intilligence) is one of many Australian SMEs which are looking to diversify into the Singapore market.  It is a supplier of ‘point-of-sale’ products and software, based in Maroochydore, Queensland.  It also provides ‘smartcard’ solutions to business.  It has developed smartcard applications for use in public transport ticketing.  These can be enhanced for non-transit use, for example by school students for purchases of school lunches, and loyalty schemes.  Its Healthy Rewards Cashless School concept, involving the use of canteen smart-cards to encourage healthy eating habits among young students, was launched in Brisbane in 2002.

The launch has led to Intilligence’s involvement with the ERG Group, a Perth-based company with a reputation as a world leader in the development and supply of the smartcard-based automated fare collection (AFC) system, and in turn this has led to Intilligence’s exposure to the Singapore market.  The ERG Group has signed up Intilligence to integrate its canteen smartcard application with ERG’s AFC system in Sydney.  Before proceeding to set up this world-first integration in Sydney in early 2004, Intilligence has decided to conduct a pilot project to test its software in Singapore.

Singapore is the chosen site for Intilligence’s pilot project becauseSingapore has already adopted ERG’s multimodal smartcard-based AFC system with more than 5 million cards in circulation and 24,000 smartcard readers installed across the six transit operations covering bus, light rail and heavy rail.  In addition, Singapore’s proximity to Australia and its position as a regional hub means that it could be the springboard to many other Asian countries. 

In July 2003, Intilligence installed its integrated system at the Australian International School in Singapore and put in touch-screen point of sale terminals.  It will implement its next stages of application in 2004.

Should Intilligence decide to diversify its business to the Singapore market, it will be entering the market at a time when conditions of entry have been eased significantly by SAFTA.  In addition, it is expected that the dynamic effects of SAFTA will help promote strategic alliances of Australian and Singapore firms and enhance government-to-government cooperation in the area of SME development.  Intilligence should benefit from these effects, especially if it plans to expand into third country markets in the region.

(Source: Intilligence, 7/11 Newspaper Place, Maroochydore Queensland 4558, tel: (07) 5479 1511, fax: (07) 5479 6340, e-mail: info@intilligence.com.au)

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