selling to the singapore govt

�

Selling to the Singapore Government

A guide for business

�� | Selling to the Singapore Government: A guide for business

Foreword

� am very pleased to introduce this new guide, directed at Australian companies likely to benefit from procurement opportunities from the Singapore Government provided by the Singapore-Australia Free Trade Agreement (SAFTA).

Singapore is a very important trading partner for Australia. �ts significance is underlined by our bilateral Free Trade Agreement which, for the past four years, has delivered growing commercial benefits to our two countries.

Singapore is Australia’s fifth-largest trading partner internationally and our largest trade and investment partner in South-East Asia. �n 2006, our merchandise exports to Singapore were worth A$4.6 billion and service exports were A$2.8 billion. Two-way trade topped A$22 billion.

With a population of 4.4 million and a GDP of US$132 billion, Singapore is a competitive, dynamic and efficient market.

Since SAFTA came into effect on 28 July 2003, considerable new trade and investment opportunities have opened up for companies from both countries. Significant gains have been made in the services sectors and in the arena of government procurement.

�n order to encourage Australian business in the Singapore Government procurement market, Austrade employs a government procurement specialist in Singapore. This specialist networks with Singapore Government agencies to further SAFTA-related business opportunities for Australian companies. Austrade also holds an annual series of seminars across Australia to assist Australian companies seeking to tap into Singapore’s government procurement market.

This free guide will help Australian companies make the most of the myriad opportunities for Australian companies wanting to sell to the Singapore Government.

� hope that you will use this guide to build your knowledge of, and prepare for, the Singapore Government procurement opportunities that continue to arise from SAFTA. � wish you well in your commercial endeavours in the Singapore market.

Sincerely,

Warren Truss Minister for Trade

��

We would like to acknowledge the invaluable assistance from the following

Singapore government departments in preparing this publication:

Ministry of Finance

Spring Singapore

International Enterprise Singapore

GeBiz

Building Construction Authority

Austrade would also like to acknowledge the Department of Foreign Affairs

and Trade, and Department of Finance and Administration for their assistance

in preparing this publication.

Acknowledgements

About Austrade

The Australian Trade Commission (Austrade) is the Australian trade promotion

government agency that helps Australian companies win overseas business for

their products and services by reducing the time, cost and risk involved in selecting,

entering and developing international markets.

Austrade is represented in more than 140 overseas locations in over 60 countries

and in Australia. Austrade offers practical advice, market intelligence and ongoing

support (including financial) to Australian businesses looking to develop international

markets. Austrade also provides advice and guidance on overseas investment and

joint venture opportunities, and helps put Australian businesses in contact with

potential overseas investors.

Austrade’s services to Australian companies include:

practical export information and advice

identification of overseas opportunities

on-the-ground exporting support overseas and in Australia

a comprehensive trade exhibition program

services to identify potential overseas business partners and to research and access high-potential markets for Australian companies

strategic export planning and network formation services.

General information is provided at no charge either through www.austrade.gov.au

or by speaking with an Austrade export adviser on 13 28 78 (Australia only).

Specific tailored advice is provided to thousands of Australian companies each year

based on a quote in advance. Our fees are based on an hourly rate and our service

levels are guaranteed.

Austrade also provides financial assistance to Australian exporters through the

Export Market Development Grants scheme. Under the scheme, eligible Australian

businesses are reimbursed for part of the export marketing costs they incur.

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�V | Selling to the Singapore Government: A guide for business V

Contents

Acknowledgements II

Foreword III

About Austrade IV

1. Doing Business in Singapore 1

2. The Singapore - Australia Free Trade Agreement

Benefits to Australian Businesses 6

3. A Step-by-Step Guide to Government Procurement 16

Step 1: Understand the Process 20

Step 2: Spot the Opportunities 22

Step 3: Register as a GeB�Z Trading Partner 23

Step 3a: Register as a Government Supplier 25

Step 3b: Register as a BCA Supplier for Construction Related Tenders 27

Step 3c: Register as a Public Sector Panel of Consultants for consultancy

services for public sector building and construction projects 28

Step 4: Submit Your Bid 29

4. Useful Contacts 38

1 | Selling to the Singapore Government: A guide for business 2

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Doing Business in Singapore

With a population of 4.4 million and a GDP of $US132 billion Singapore boasts the fifth highest per capita GDP in the world. This highly developed economy shows continued growth potential, with real GDP growth of 7.9 per cent in 2006.

By harnessing its key strengths – adaptive human resources and a strategic

geographical position – Singapore has managed to overcome its limitations as a

small country with no natural resources. �t is the world’s busiest port for shipping

tonnage, handling a quarter of the world’s total transhipment volume. Of the more

than 7,000 multinational corporations doing business in Singapore, half have their

regional headquarters there. More than 1,300 Australian companies are registered

in Singapore.

Businesses find Singapore attractive because of a combination of many factors,

including:

minimal red tape

a clean, efficient and stable government

a transparent and consistent business framework

a cost-competitive and skilled labour force

excellent industrial relations

a well-established and efficient legal system

strong protection of intellectual property rights

stable prices

good cooperation between government and private sector organisations.

All of these qualities provide investors with peace of mind and a conducive environment

in which to operate. Consequently, Singapore has consistently topped numerous

international rankings for ease of doing business.

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PSA Port – Singapore

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Doing business in Singapore

3 | Selling to the Singapore Government: A guide for business


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Singapore City

How Singapore Measures Up

Top in ease of doing business in the world (World Bank Report, ‘Doing Business 2007: How to Reform’).

Fifth in most competitive Asian Economy (Global Competitiveness �ndex, 2005/06).

Most cost-competitive business location among nine industrialised countries (KPMG Competitive Alternatives Study, 2006).

World’s top 20 most globalised nations (A.T. Kearney/Foreign Policy magazine Globalisation �ndex 2006).

�n the World’s Most ‘Network Ready’ Country (Global �nformation Technology Report 2005/06, World Economic Forum).

Best labour force (BER�’s 2005 Labour Force Ranking).

Third in world’s overall competitiveness (�MD World Competitiveness Yearbook 2006).

Least bureaucratic place for doing business in Asia (Political and Economic Risk Consultancy, June 2006).

Many Australian companies have already experienced the benefits of doing business

in or with Singapore. Singapore is Australia’s eighth largest export market, and our

fourth largest partner in terms of two-way trade.

�n 2006, Australian merchandise exports to Singapore were A$4.6 billion, while

Australian imports from Singapore were worth A$10.8 billion. Australia also exported

A$2.8 billion worth of services to Singapore and imported A$4.1 billion of services

from Singapore that year.

Australian businesses are in a particularly good position to capitalise on Singapore’s

advantages, for the following reasons:

English is the language of administration and business in Singapore

The legal systems of the two countries are similar in many respects

Australia is building a track record in providing high-quality and innovative goods and services to buyers in Singapore

A comprehensive Agreement for the Avoidance of Double Taxation between Australia and Singapore means that businesses enjoy greater certainty without incurring tax twice on the same income.

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The Singapore - Australia Free Trade Agreement creates even more reasons for Australian businesses to explore opportunities in Singapore. The time is ripe for businesses to strengthen their foothold in the Singapore market, and Government Procurement is an additional avenue for doing business in Singapore.

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The Singapore - Australia Free Trade AgreementBenefits to Australian Businesses

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Business Etiquette

Although Singapore is a very westernised country, it is still Asian at heart. About 76 per cent of the population are of Chinese ethnicity, 14 per cent Malay, 8 per cent �ndian, and 2 per cent of other ethnic origins. There are subtle cultural differences that you will need to be sensitive to when doing business with Singaporeans.

Business cards are often referred to as ‘name cards’ in Singapore. Your business card should always include your title as it reflects your position and importance within your organisation. When presenting your business card, it is polite to use both hands. Treat the other party’s business card with respect – never write on it or put it in your back pocket.

When addressing a person, use his/her salutation followed by the family or personal name. Most Chinese place their family names first, followed by their personal names for example; for Mr Tan Keng Swee, ‘Tan is the family name and the given name is Keng Swee.’

Malays – and many �ndians – use their first name instead of a family name. For example, Malay names are constructed with a given name followed by bin (for men) or binti (for women) before a father’s given name (the bin and binti component is often omitted). For example, in the following Malay name – Mr Abdul Rahman bin Mohamad Sidek – the person’s given name is Abdul Rahman. �ndian names are usually similar to those of Westerners where given name comes first, followed by a family name: for example, Mr Manessh Mathur.

When arranging to meet a potential customer or partner, the appointment should be made at least one week in advance and confirmed a day before. A formal setting is recommended, especially for the first time. When meeting a customer, it is best to suggest meeting at their premises and allow them to book a meeting room in advance. �f, however, your schedule is tight, you may suggest meeting in a conference room at the hotel where you are staying. Coffee shop and café meetings should be avoided unless the customer suggests it or a relationship has already been established.

Business hours are similar to Australia. Official business hours are Monday to Friday from 9am to 5pm. Although it is common for many people to work past 5pm, meetings should not be set later than 4.30pm.

Smart business wear is expected for ladies. Men should wear a tie and long sleeves when meeting customers. Despite the tropical climate, short sleeves are generally not acceptable business attire. Jackets may be worn to formal events.

When setting a price for your product, expect there may be a degree of bargaining. Always deliver your products within the agreed timeframe.

The Australian casual way of doing business and easy sense of humour could be misunderstood. Doing business in Asia can be more formal than what Australians are used to. Although English is the official business language in Singapore, a local based English language (Singlish) is commonly used and may be confusing for foreigners.

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The Singapore - Australia Free Trade A

greement Benefits to A

ustralian Businesses

Key Gains from SAFTA

TariffsElimination of all tariffs, including Australian beer and stout. Goods may now enter Singapore tariff-free provided they meet the Rules of Origin outlined in SAFTA.

ServicesComprehensive and transparent ‘negative listing’ of services commitments, open market access and national treatment for a range of service sectors.

Financial SectorRestrictions on the number of wholesale banking licences were removed on 1 January 2007. Banks allowed to transfer information, including electronic data, to Australia.

EducationNational treatment and market access commitments for Australian education providers. Singapore government overseas scholarships tenable at Australian universities.

Legal Industry�ndustry conditions eased on establishment of joint ventures involving Australian law firms. Number of Australian law degrees recognised in Singapore increased from eight to ten, following the First Ministerial Review.

Business Travel

Removal/easing of residency requirements for Australian professionals. Short-term entry for Australian business people extended from one month to three months and long-term business entry of up to 14 years in total. Rights to work for spouses of business people.

InvestmentTransparency of investment restrictions in Singapore’s government-linked companies. �nvestors protected against, and compensated for, expropriation.

Telecommunications Telecom interconnection on non-discriminatory, timely, cost-oriented terms.

Government Procurement

Australian firms get national treatment in procurement by 47 Singapore agencies. Protection of intellectual property supplied in government tender processes.

Intellectual PropertyCooperation on eliminating trade in goods infringing intellectual property rights.

To ensure its continued relevance for Australian and Singapore businesses, SAFTA is

reviewed on a regular basis, ensuring its status as a comprehensive ‘living document’

that may be added to and updated as bilateral trade and investment evolves over time.

The Singapore - Australia Free Trade Agreement (SAFTA) came into effect on 28 July 2003. �t is Australia’s first bilateral free trade agreement since the 1983 Closer Economic Relations Trade Agreement with New Zealand.

A comprehensive agreement, SAFTA is fully consistent with World Trade Organisation

(WTO) rules. �t also secures outcomes for Australia that go deeper and further

than the WTO in relation to trade in services, intellectual property, investment and

competition policy.

SAFTA offers greater opportunities in goods and services to a wide range of Australian

exporters and further strengthens trade and investment links. �t eliminates Singapore’s

tariffs and provides cheaper inputs for Australian businesses on a range of products.

�t also guarantees liberal access conditions for many services suppliers. Australian

legal, financial and educational service exporters, for example, will benefit from

outcomes on services that are more advanced than those of the WTO.

SAFTA provides a more open and predictable business environment across a range

of areas, including:

Trade in goods

Trade in services

�nvestment

Telecommunication services

Financial services

Movement of business people

Government procurement

�ntellectual property rights

Competition policy

E-commerce

Education cooperation.

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TAFE + SAFTA = SUCCESS

David Riordan believes that SAFTA has made working in Singapore

markedly easier.

David is the Chief Executive Officer of the �nternational Business Office (�BO),

the NSW Department of Education and Training’s new international unit. As well

as taking over the activities of TAFE Global, the �BO also manages the �nternational

Students Centre, which is responsible for the recruitment of international students

for government schools and TAFE �nstitutes, the enrolment of temporary residents

into government schools, and school based study tours. The �BO also manages all

international delegations and vocational education study tours.

The �BO is currently active in over 37 countries with a strong focus on South East

Asia, China, �ndia and the Middle East. The most recent project in Singapore was

the development of a comprehensive training framework for the retail industry.

This project was completed on behalf of the Singapore Workforce Development

Agency (WDA).

“The retail sector in Singapore is extremely important” notes Mr Riordan. “We were

asked to develop a training blueprint for the industry including the development of

a qualifications framework and multiple curriculum documents. This was the first

program we worked on with the WDA, so together we were testing which strategies

would get us the results we wanted.”

According to Mr Riordan, the first training program has been completed and has

worked out extremely well. “The WDA has implemented the program and now has

full responsibility and ownership. The collaborative approach which was supported

and enhanced by SAFTA has really smoothed the way forward for many other

Australian companies, especially those in the education and training sector.

The work and role of SAFTA gives us added confidence in pursuing other opportunities

in the region.”

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SAFTA and Government Procurement

One of the express aims of SAFTA is to expand the scope for promotion of

trade through government procurement. This is consistent with the spirit

of the Asia-Pacific Economic Cooperation (APEC), to which both Australia

and Singapore are parties. APEC is based on non-binding principles of

non-discrimination, national treatment and transparency in 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 World Trade Organisation (WTO) Agreement

on Government Procurement (GPA), Singapore will match Australia in its commitments

under the GPA, guaranteeing non-discriminatory national treatment for Australian

firms in tendering for Singapore Government business.

SAFTA guarantees this access without the limits on thresholds and product coverage

that are included in the GPA.

To allow ease of access, the Singapore Government is committed to providing

opportunities in government procurement through electronic means, or ‘e-procurement’.

Accordingly, any intellectual property and confidential information provided by

potential suppliers during the tender process will be protected.

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Ministry of Manpower

Ministry of National Development

Ministry of Trade and �ndustry

Ministry of Transport

Monetary Authority of Singapore

National Parks Board

Parliament of Singapore

Prime Minister’s Office

Preservation of Monuments Board

Professional Engineers Board

Public Transport Council

Public Service Commisvsion

Sentosa Development Corporation

Singapore Tourism Promotion Board

Standards, Productivity and �nnovation Board

Urban Redevelopment Authority.

More information on SAFTA is available at www.fta.gov.au

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The web addresses and other contact details of all government departments and agencies are listed in the Singapore Government Directory at www.sgdi.gov.sg

The Singapore Government’s pre-procurement plan lists potential procurements worth more than S$200,000 that the public sector is likely to conduct in the coming six months. This can be viewed at www.gebiz.gov.sg

Note that the financial year for the Singapore Government is 1st April to 31st March of the following year.

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The following Singapore ministries, agencies and statutory authorities are bound by SAFTA provisions:

Agency for Science, Technology and Research

Attorney-General’s Chambers

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

�nfocomm Development Authority of Singapore

�nland Revenue Authority of Singapore

�nternational Enterprise Singapore

�stana

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 the Environment

Ministry of Finance

Ministry of Foreign Affairs

Ministry of Health

Ministry of Home Affairs

Ministry of �nformation, Communications and the Arts

Ministry of Law

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Singapore Land Authority (SLA)

Singapore Medical Council (SMC)

Singapore Nursing Board (SNB)

Singapore Polytechnic (SP)

Singapore Sports Council (SSC)

Singapore Totalisator Board (S�NGTOTE)

Singapore Workforce Development Agency (WDA)

TCM Practitioners Board (TCMB)

Temasek Polytechnic (TP).

Although the above government agencies are being reviewed, Australian companies

are still winning business from these agencies.

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The following Singapore ministries, agencies and statutory authorities are to be reviewed under SAFTA provisions:

Accounting and Corporate Regulatory Authority (ACRA)

Agri-Food and Veterinary Authority of Singapore (AVA)

Central Provident Fund Board (CPF)

Civil Service College (CSC)

Competition Commission of Singapore (CCS)

Defence Science and Technology Agency (DSTA)

Economic Development Board (EDB)

Energy Market Authority (EMA)

Health Promotion Board (HPB)

Health Sciences Authority (HSA)

�nstitute Of Technical Education (�TE)

�nstitute of Southeast Asian Studies (�SEAS)

�ntellectual Property Office Of Singapore (�POS)

Media Development Authority (MDA)

Nanyang Polytechnic (NYP)

National Arts Council (NAC)

National Council of Social Service (NCSS)

National Environment Agency (NEA)

National Heritage Board (NHB)

National Library Board (NLB)

People’s Association (PA)

Public Utilities Board (PUB)

Republic Polytechnic (RP)

Science Centre Board (SCB)

Singapore Corporation of Rehabilitative Enterprises (SCORE)

Singapore Dental Council (SDC)

Singapore Examinations and Assessment Board (SEAB)

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Austrade as an effective go-between

Austrade is constantly in contact with Singapore Government agencies to update

them on Australian supply. For example, in 2006, Austrade organised a session with

19 agencies and presented them with information on how Austrade is able to help

meet their needs.

Singapore’s National Library Board (NLB) subsequently called for a tender to provide

specialised training for a team of cataloguers and indexers. CAVAL, an Australian

not-for-profit company co-owned by ten universities, was successful in winning the

contract. Austrade provided critical post-tender assistance to CAVAL, particularly in

relation to advice on withholding tax.

Following CAVAL success, NLB has contacted Austrade Singapore about another

project – a serial subscription system to be published on the Singapore tender

system. As a result, Austrade alerted Australian library service providers of

this tender.

With constant communication and a well-established rapport with Singapore

Government agencies, Austrade is in a position to continue alerting Australian

businesses on relevant upcoming Singapore government tenders.

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Designed for Success

Architectural and design firm Woodhead is an example of an Australian business that has successfully supplied its services to the Singapore Government.

With Austrade’s initial help, Woodhead (Wilson) was invited to submit a design

proposal for the interiors of Singapore’s Changi Airport Terminal 3, a project worth

an estimated S$1.4 billion. Woodhead’s proposal for a modern and user-friendly

airport terminal requiring minimal maintenance ultimately led to its win against stiff

competition from three other world-renowned architectural firms.

“The process of bidding was very open, transparent and fair, with the Singapore

clients seeking the best worldwide designs and benchmarking,” says David Holm,

Woodhead’s design principal.

Woodhead’s win was particularly significant, as it opened the doors to other major

projects, including the contract to design the interiors of Singapore’s National Library

(worth about S$230 million), as well as the refurbishment of Changi Terminal 1.

With SAFTA, Woodhead has been able to use Singapore as a gateway to the rest of

South East Asia. Besides Singapore, Woodhead has established operations in China,

Thailand, �ndia, Vietnam and Europe.

National Library, Singapore

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Principles of Singapore Government Procurement

As a party to the 1994 Agreement on Government Procurement under the WTO,

Singapore is committed to the following principles for government procurement:

Openness & Fairness

The procuring agency will not discriminate in favour of or against any supplier.

All suppliers are treated fairly and provided with the same information to prepare

their bids.

Transparency

The procurement procedures and policies for supplying to the Singapore Government

are clear and made known to suppliers. The procuring agencies aim to provide all

necessary information; for example, purchase requirements and bid evaluation criteria.

Value for Money

�n order to achieve value for money, the procuring agency evaluates all offers it receives. The evaluation is based not only on price, but also the potential suppliers’ compliance with all of the specified requirements, the quality of their goods and services, as well as their timeliness in delivery, reliability and after-sales service.

Under the Singapore-Australia Free Trade Agreement (SAFTA), suppliers from both

Australia and Singapore are treated equally.

This step-by-step guide to government procurement is intended to help you bid

for projects by the Singapore Government.

It is worth noting that Singapore takes a strong stance against corruption. Singapore Government employees are prohibited from accepting gifts or other favours from potential suppliers. As a potential supplier, you should not approach any agency in any way that could be perceived as an attempt to improperly influence the procurement process.

Australian individuals and companies can also be prosecuted in Australia for bribing foreign officials when overseas.

Australian suppliers can participate in Singapore Government projects in the same way as Singaporean suppliers, regardless of the value of the projects.


Step 1: Understand the Process

What the Singapore Government buys

All purchases by the Singapore Government are classified into goods,

services and construction services.

Goods include materials, manufactured items, consumables and non-consumables.

Examples are computer hardware/software, food & beverage, and office equipment.

Services encompass cleaning, maintenance and repair of goods, consultancy, advice

and dissemination of information. This category excludes construction services.

Construction services cover construction and construction-related engineering

projects, renovation and maintenance works on buildings and other permanent

structures. This category also includes the installation and maintenance of electrical

and mechanical facilities in buildings and other permanent structures.

How the Singapore Government buys

Individual agency procurement

�ndividual ministries, departments and statutory boards may buy goods and services

for their own use.

Centralised procurement

Goods and services that are commonly procured by the public sector are sourced

centrally by a particular agency.

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Step 2: Spot the Opportunities

GeB�Z (www.gebiz.gov.sg) is the Singapore Government’s one-stop business centre,

where suppliers can transact electronically with all public sector agencies.

The GeB�Z website displays all opportunities for quotations, open tenders and

selective tenders.

�n addition, GeB�Z shows the Government’s pre-procurement plan, which is a listing

of potential procurements worth S$200,000 and above that the public sector is likely

to conduct in the next six months.

Although the pre-procurement plan is merely indicative, it can serve as a useful

aid for potential suppliers. Specifically, it gives you lead-time to source for your own

supplies and to prepare your proposals.

Because the contact details of the officer responsible for procurement in each case

are provided, you may also wish to contact him/her to seek clarification in advance.

Viewing business opportunities on GeBIZ is free of charge, and you need not be a registered user to view. However, you will need to be registered as a GeBIZ Trading Partner before responding to any of the tender opportunities.

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Regardless of whether procurement is for an individual government body or for

the entire public sector, goods and services are purchased using one of the three

procedures below:

Value of purchase Procedure

Up to S$3,000 Direct Purchase or off-the-shelf.

S$3,001 – S$70,000Quotation posted openly on the Government e-Business (GeB�Z) website.

Above S$70,000

Tender One of three types of tender may be called:

Open tender A tender notice is posted on GeB�Z inviting any supplier to bid.

Selective tender Used for purchases with sophisticated requirements, this is a two-stage procedure:

A pre-qualification exercise is conducted to shortlist applicants based on their capabilities.

Shortlisted applicants are then invited to submit their tenders.

Limited tender Such tenders are used when the project involves national security, or when open tenders are impractical (for instance, for works of art). Limited tenders are by invitation only.

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The benefits of registering as a GeB�Z Trading Partner are shown in the table below:

Function Not registered as a GeBIZ Trading Partner

Registered GeBIZ Trading Partner

View government pre-procurement plan 3 •

View tender notices, schedules and awards 3 •

View qualification notices and schedules 3 •

View auction notices 3 •

View requests for information 3 •

View related corrigenda 3 •

View quotation notices and brief descriptions of quotation awards 3 •

Download tender documents 3 •

View quotation notices and details of awards • 3

Submit quotations and tender submissions electronically • 3

Access all archived notices, schedules and awards • 3

Receive electronic purchase orders • 3

Receive email notifications when purchase orders are issued • 3

Submit electronic invoice • 3

View payment status • 3

Use of GeB�Z Mall • 3

For certain tenders, it may also be necessary for you to register as a Government

Supplier or as a Building & Construction Authority’s Supplier.

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Step 3: Register as a GeBIZ Trading Partner

To supply goods and services to the Singapore Government, you need to register

as a GeB�Z Trading Partner.

Registration is free for the first account, while each additional account costs

S$280 per year as at 1 April 2007.

Online registration is straightforward and may be done at www.gebiz.gov.sg

The advantages of registering as a GeB�Z Trading Partner include:

unlimited access to S$10 billion worth of business opportunities each year

ability to receive purchase orders and submit invoices electronically

access to information on your competitors’ goods and pricing

ability to advertise your capabilities on GeB�Z Mall, an electronic catalogue that is browsed by approximately 12,500 users daily.

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As a GeBIZ Trading Partner, you will be able to enjoy free listing for the first 10 items. The listing of your products and services can then be viewed by government buyers.

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Registration under each Head of Supply may be for one of the financial grades shown

below. The financial grade determines the maximum tender value (Tendering Capacity)

that a business is eligible to bid for.

�n order to qualify for a particular financial grade, your business must satisfy the

minimum Net Tangible Assets1 as well as Turnover/Sales/Revenue required for that

particular financial grade. These are shown in the table below.

Financial GradeTendering Capacity

(S$)Required Net Tangible

Assets (S$)Required Turnover/ Sales/ Revenue (S$)

S2 100,000 5,000 100,000

S3 250,000 12,500 250,000

S4 500,000 25,000 500,000

S5 1,000,000 50,000 1,000,000

S6 3,000,000 150,000 3,000,000

S7 5,000,000 250,000 5,000,000

S8 10,000,000 500,000 10,000,000

S9 >10,000,000 1,500,000>10,000,000

Paid-up capital must be at least S$1,500,000

S10 >30,000,000 4,500,000>15,000,000

Paid-up capital must be at least $2,000,000

Government Supplier Registration Processing Fees

The processing fee is S$45 for one Head of Supply, and S$90 for two or more

Heads of Supply (all fees are inclusive of GST).

Validity Period

Once approved, registration is valid for up to 3 years, depending on your ability

to meet the registration criteria.

1 For Companies, NTA is the sum of paid-up capital, revenue reserves, preference/ premium shares plus accumulated profit or less accumulated losses.

For Businesses, NTA is the sum of cash in the working capital/partners’ account that is currently allocated for the applicant’s business under reference, plus profit or less total liabilities (i.e. accumulated losses or withdrawals).

For newly formed Companies/Businesses, NTA is based on the paid-up capital or cash in the working capital/partners’ account.

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The table below indicates what must be done before tendering for the Singapore

Government tender:

Must be a GeBIZ Trading Partner

Must be a Government – Registered Supplier

Must be a BCA-Registered Supplier

Quotations 3 • •

Tenders for goods and services 3

3 (for most tenders)

•

Tenders for construction services 3 • 3

Step 3a: Register as a Government Supplier Business entities wishing to tender for the supply of goods and/or services to the

public sector (i.e. Government Ministries/Departments, �nstitutions, Statutory

Boards, and other public sector organisations) may be required to have valid

Government Supplier registration as one of the evaluation criteria for the tender.

�f Government Supplier registration is required for any particular tender, it will be

stated in the tender notice and documentation.

Although Government Supplier registration is not compulsory for bidding of tenders,

most tenders may require suppliers to have valid Government Supplier registration

in order to qualify. Such requirement is to equip the government agency with

information on the suppliers who are being assessed. For example, the Singapore

Government will generally ask for financial resources information to ascertain

capabilities before awarding the contract.

Since 28th October 2005, the Singapore Government has best sourced the provision

of Government Supplier services to DP Bureau Pte Ltd. Registration may be done

at www.gebiz.gov.sg. You must first register as a GeB�Z Trading Partner before

registering as a Government Supplier.

The Government Supplier registration has different categories of goods and services,

each of which is referred to by the term ‘Head of Supply’. Depending on the types

of goods and services your company provides, your business will come under a

particular Head of Supply; for example, Advertising and Graphics Services, Survey

Services, or Communication and Navigation Systems.

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Step 3c: Register as a Public Sector Panel of Consultants for consultancy services for public sector building and construction projectsThe Public Sector Panel of Consultants was set up for public sector procurement

of building and construction consultancy services. Registration as a Public Sector Panel

of Consultants is under the purview of the Building & Construction Authority (BCA).

It is not mandatory to join the Public Sector Panel of Consultants if your company

does not participate in public sector building and construction consultancy tenders.

Often, government agencies will call for an Expression of �nterest (EO�) for

consultancy tenders from companies listed in the Public Sector Panel of Consultants.

The shortlisted companies will then be allowed to proceed to tender.

Registration as a GeB�Z Trading Partner is not a prerequisite for registration with the

BCA. However, note that you will need to be a registered GeB�Z Trading Partner in

order to submit your quotations or tenders through GeB�Z.

There are five disciplines (i.e. categories) that may be applied for: Architectural, Civil

& Structural, Mechanical & Electrical, Quantity Surveying and Project Management.

Each discipline has 4 panels that are classified into various project value banding

except for Project Management, which has only 2 panels. The registration of the panels

is determined by the company’s track record and the number of professionals in

the company.

Registration requirements, application forms and information on processing fees are

available on the website. The processing fees as at March 2007 range from S$30 to

S$120, depending on the type of panel applied for. However, the processing fees may

be revised from time to time and interested companies are advised to check the BCA

website for any updates.

Benefits of registering as a Government Supplier, BCA Registered Supplier and Public Sector Panels of Consultants

The Government Registration organisations help to reduce the administrative work

for you when you bid for different government projects. �nstead of undergoing

an evaluation and registration process every time you respond to a tender, you

need only submit relevant financial documents once to the relevant Government

Registration Authority.

Once registered, the Singapore Government maintains a record of your business, thus

enabling your business to participate in tenders called by any public sector agency,

according to the appropriate financial grade and Head of Supply/Panel (for building &

construction consultants).

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Step 3b: Register as a BCA Supplier for Construction-Related TendersThe Building & Construction Authority (BCA) is a statutory board of the Singapore

Government. One of its roles is to register suppliers of construction and engineering

services. �t is essential for you to register as a BCA Supplier if you wish to participate

in construction or construction-related projects for the Singapore Government.

For all such projects, suppliers must be BCA-registered unless otherwise specified

in the tender.

Once your business is entered into the BCA Contractors Registry, you will be pre-

qualified for specific categories of works. Other government departments intending

to procure services for construction-related projects will also refer to the Contractors

Registry. �n some cases, they may conduct a further pre-qualification exercise.

Registration as a GeB�Z Trading Partner is not a prerequisite for registration with the

BCA. However, note that you will need to be a registered GeB�Z Trading Partner in

order to submit your quotations or tenders through GeB�Z.

There are six major groups of registration heads (i.e. categories) that may be applied

for: Construction Workheads, Construction Related Workheads, Mechanical &

Electrical Workheads, Supply Workheads, Maintenance Workheads and Regulatory

Workheads.

Registration requirements, application forms and information on processing fees

are available on the website. Processing fees as at December 2006 range from

S$540 to S$3,600, depending on the workheads applied for, and registration is valid

for a period of 3 years. The processing fees may be revised from time to time and

interested companies are advised to check the BCA’s website for any updates.

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b. Withholding Tax

Foreign companies whose services are performed in Singapore are taxed at

approximately 20 per cent. However, the evidence of double taxation agreement

between Australia and Singapore means that you will not be taxed twice on the

same income. �t is always advisable to seek confirmation of your tax obligations.

The �nland Revenue Authority of Singapore website is www.iras.gov.sg

c. GST (Goods and Services Tax)

GST has increased to 7 per cent, effective from 1 July 2007. However, it is not

applicable to foreign companies.

d. Lump Sum Tender

Lump sum pricing is often requested in tenders.

e. Validity Period

Your tender offer will usually be valid for 90 days unless otherwise specified in the

tender documents.

f. Volume Commitment

For procurement of goods, a minimum volume commitment is usually stated.

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Step 4: Submit Your BidOnce you are registered as a GeB�Z Trading Partner, you may respond to quotations

and tenders. Note that certain tenders may also require you to be a registered

Government Supplier or BCA Supplier or Public Sector Panel of Consultants.

Before submitting your bid, it is essential to read carefully all the conditions and

requirements of the quotation or tender. While the detailed conditions will differ

from contract to contract, certain basic conditions are fairly typical.

Typical Conditions of Contract

a. Security Deposit

As a successful tenderer, you may be required to provide a security deposit. The amount

of the security deposit would have been indicated in the tender document. The table

below serves as a guide on the amount of security deposit usually required.

Goods/Services contracts up to S$500,000

Goods/Services contracts over S$500,000

Construction contracts

Amount of security deposit

Waived Generally 0%-5% Generally 0%-5%

You can provide the security deposit in the form of:

Cheques

�nsurance performance bonds

Banker’s guarantees

For deposits of up to S$300,000, a guarantee from an approved finance company.

You will receive a refund of the security deposit or the balance due to you when the

contract expires and all contractual obligations are completed satisfactorily. This will

be in accordance with the terms of the contract.

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Overview of the Bidding Process

Visit GeB�Z at www.gebiz.gov.sg

View Quotation or Tender Opportunities

Bid?Exit

Already registered as a GeB�Z Trading Partner?

Government Supplier Registration Required?

Register as a GeBIZ Trading Partner

BCA Registration Required?

Already registered as a BCA Supplier?

Registered as a BCA Supplier

Already registered as Government Supplier?

Register as a Government Supplier

Submit Bid through GeBIZ

Yes

No

Yes

Yes

No

No

Yes

Yes

No

No

No

Yes

Important Tips

Read all instructions carefully, noting the detailed requirements.

�f you have any questions regarding the quotation/tender, contact the person in charge. His/her contact information will be stated in the tender notice.

�t is useful to be able to demonstrate a good track record of dealing with government agencies or government-linked organisations in Australia or elsewhere.

�t is advantageous to have a contact or representative in Singapore for any follow-up action.

You have to quote prices in Singapore currency, unless otherwise specified.

Submit your bid through GeB�Z. You might be allowed to submit hard copies of voluminous catalogues and supporting documents that are too large to be attached electronically. �f so, this will be stated in the �nstructions to Tenderers. But note that even if you have submitted hardcopy items, you must still submit your bid for the tender through GeB�Z.

Before submitting, check that your prices are correct. Bids can be prepared and saved in GeB�Z. Even after submission, bids can be retrieved and amended, so long as the tender has not yet closed. However, no changes whatsoever are allowed after the tender closes.

Submit your offer a day before the tender closes so as to avoid a last-minute rush. Late submissions will not be accepted under any circumstances. (Time is as reflected on GeB�Z.) This is to ensure equal treatment of all bidders.

Check that you have received a system-generated response number. Keep a printout of this as evidence that you have successfully submitted your bid.

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How your bid is evaluated

Value for money is a key consideration in evaluating bids. However, note that

the project is not necessarily awarded to the lowest bid.

For tenders, evaluation follows strictly the criteria set out in the tender document.

Such criteria are divided into:

Critical criteria, which must be fulfilled in order for you to be eligible for award.

Non-critical criteria, which are optional.

All tender bids undergo a 2-stage evaluation:

A Tender Evaluation Committee (TEC) comprising procurement officers, representatives from the end-user departments, and technical specialists, will evaluate your offer. Besides pricing, the TEC evaluates if your offer complies with all the specifications stipulated in the tender document.

A Tender Approving Authority (TAA) then considers the recommendations of the TEC. The TAA comprises at least 3 senior officers. There is no overlap in membership between the TEC and the TAA.

The TAA may decide to:

Award the tender to one or more tenderers,

Not award the tender, or

Abort the tender.

Once a tender is approved, an award notice is published on GeB�Z to inform all

tenderers of the outcome. The award notice includes the name of the successful

tenderer(s) and the contract sum.

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A Winning Streak

Winning Government tenders in Singapore is not difficult for companies that do

their homework and offer value for money. �t is also a way for businesses to boost

their reputation in the region.

Box Hill �nstitute (BH�) is one of Australia’s premier Technical and Further Education

�nstitutes offering a broad range of vocational education and training services. With

help from Austrade, BH� managed to clinch three major tenders from Singapore’s

Workforce Development Agency (WDA).

Community & Social Services Project

Since October 2005, BH� has been developing a national framework for training in

the community services sector in Singapore. This project involves BH� working with

the WDA to establish best practices for the Workforce Skills Qualification

(WSQ) system.

The success of this project will ensure a higher level of employability and greater

industry commitment at all levels of training for workers in the community

services sector.

Service Excellence Project BH� was also appointed consultant on WDA’s Service Excellence Project. BH�’s role

was to develop a Service Excellence Training Approach as part of the WSQ system.

The project commenced in February 2006 and has since been completed. �t will

enable Singapore to upgrade skills and service levels across various service sectors.

Process Industries Project BH�’s latest project for WDA began in March 2007. �t involves helping WDA to

develop a competency map and, eventually, competency standards as part of

the WSQ system for the process cluster in Singapore. The cluster includes the

manufacturing and construction industries.

These successful tenders have increased Box Hill’s capacity to deliver projects

in other countries as well.

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Registering your Business in Singapore

Under SAFTA, Australian businesses are treated like Singaporean businesses for the

purposes of Government projects. There is thus no requirement for you to register

your business in Singapore before bidding for Singapore Government projects.

However, for practical reasons such as ease of communicating with your clients, you

may find it more effective to establish an operational presence in Singapore.

�f so, a decision will have to be made as to the type of business entity to establish

in Singapore.

Representative Office

A Representative Office (RO) is a temporary business facility for foreign businesses

to explore business opportunities in Singapore before investing in a full-fledged

business outfit.

While ROs enjoy advantages such as minimal reporting requirements and exemption

from Singapore income taxes, it should be noted that they are not legal entities and

are not permitted to engage in commercial activities.

A RO should remain small in size, otherwise it should be upgraded and incorporated

as a legal entity.

Limited Liability Partnership

A Limited Liability Partnership (LLP) provides owners the affordability and flexibility

of operating as a partnership with the limited liability of a private limited company.

There are however legal safeguards to protect parties who deal with a LLP, and such

safeguards may result in certain conditions to fulfil.

A LLP is regarded as a legal person and body corporate with its own separate legal

personality. �t requires at least two partners and one manager. The partners may be

individuals, companies (local or foreign) or other LLPs, while the manager must be

above 21 years old and either a Singapore citizen, permanent resident or a holder of

an Employment or Dependent Pass.

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Cruising through the tender process

Fast patrol boats, rescue craft and high-speed ferries are among the vessels made

by Strategic Marine, an innovative company based in Henderson, Western Australia.

One of the first in the world to use aluminium for boats, Strategic Marine designs

and produces service vessels for a number of industries, including commercial

shipping and fishing.

The Singapore Coastguard, the Malaysian Police, and the Australian Defence Force

number among this company’s impressive client list.

Strategic Marine has designed and constructed over 100 Fast Patrol Vessels, including

60 exported to Singapore and 15 to Malaysia. These vessels range in size from 11

metres to 50 metres and have speeds of up to 52 knots.

Managing Director �nternational Business, Ron Anderson, explains that Strategic

Marine provides a turnkey service in ship building and repair. “We’ve developed

construction techniques that not only improve the quality of the vessels we construct,

but also reduce production costs.”

Strategic Marine has three shipbuilding facilities: in Australia, Singapore, and a new,

wholly owned subsidiary in Vietnam. “Over 95 per cent of our production goes to

international clients now,” notes Mr Anderson, and the company has had strong

sales into Singapore recently. “Austrade were a great support for us here, particularly

in the pre- and post-tender periods.”

He says that any government project is challenging. “There’s a lot to gain if you win a

tender, and a lot to lose if you don’t. To be successful your product should be home-

grown and tested in the domestic market before you go off-shore.” He adds that

quality is absolutely critical when tendering for government.

Mr Anderson says that the Singapore-Australia Free Trade Agreement (SAFTA), which

came into effect in July 2003, really opened up the government procurement market

in Singapore. “�t is all so much easier now after SAFTA.”

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Austrade

Phone: 13 28 78 (Australia only)

Email: [email protected]

Website: www.austrade.gov.au

Austrade Singapore Office

Phone: +65 6418 8400

Fax: +65 6734 4265


Department of Foreign Affairs and Trade

Phone: +61 2 6261 3746 or +61 2 6261 3406

Fax: +61 2 6261 1304

Website: www.dfat.gov.au

Singapore Government GeBIZ Trading Partner enquires

GeB�Z Service Centre

Phone: +65 6274 5717

Fax: +65 6274 1321

Email: GeB�[email protected]

Website: www.gebiz.gov.sg

Government Supplier Registration enquiries

DP Bureau Pte Ltd

Phone: +65 6738 1900

Fax: +65 6738 8982


BCA Supplier/ Public Sector Panels of Consultants enquires

Phone: +65 6221 2242

Fax: + 6324 0346


Website: www.bca.gov.sg

Government Procurement enquiries


Business Registration enquiries

Accounting and Corporate Regulatory Authority

Phone: +65 6248 6028

Fax: +65 6225 1676

Website: www.acra.gov.sg

Investing in Singapore

Economic Development Board

Phone: +65 6832 6832

Fax: +65 6832 6565

Website: www.edb.gov.sg

Representative Office

�nternational Enterprise Singapore

Phone: +65 6337 6628

Website: www.iesingapore.com

Useful Contacts

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Useful Contacts

Company Incorporated in Singapore

A company may be either a Private Company or a Public Company and may be limited

by shares or by guarantee. A company has a legal personality and the right to own

property. �t can sue or be sued. �ts shareholders hold limited liability for debts and

losses, and its profits are taxed at corporate tax rates. (Singapore tax rates may be

viewed at www.iras.gov.sg)

Singapore Branch

A Singapore Branch (SB) of a foreign company is deemed an extension of its overseas

Head Office. An SB’s liabilities are hence the liabilities of the Head Office. �t may be

liable for certain taxes such as Corporate Tax and Goods and Services Tax.

From the time of registration, the SB must have a minimum of two local agents who

are individuals ordinarily resident in Singapore. A foreigner can serve as an agent of

an SB if he/she obtains an Employment Pass or Approval-�n-Principle letter from the

Work Pass Division of Singapore’s Ministry of Manpower.

An agent is answerable for all acts and matters required of the foreign company under

Singapore law. He/she is personally liable for any penalties if the foreign company

contravenes any such requirements.

Joint Venture

A Joint Venture may take the form of equity investment in a company or a partnership.

Joint Ventures are governed by the joint venture agreements and by the laws

governing companies or partnerships.

Different business entities enjoy different advantages and are subject to different reporting and taxation requirements. For more information on the various business entities, please refer to the Accounting and Corporate Regulatory Authority (www.acra.gov.sg).

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fta.gov.au is a one-stop online resource that offers a wealth of practical information

to help Australian businesses understand and take advantage of Australia’s

completed FTAs.

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