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Singapore Budget 2005
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Budget Speech 2005
   

Economy Drive and Cut Waste Panel

 

3.6 The Economy Drive initiatives implemented by public agencies in FY2004 produced nearly $500 million of savings. A good example of a project that has both saved money and improved service is MINDEF’s shared services centre. This was set up in April 2003 to provide services ranging from pre-enlistee services to finance, human resource and training services. The centre employs 530 staff, servicing a customer base of 85,000 active personnel as well as another 300,000 NSmen and 65,000 employers for NS payment matters. The shared services centre has transformed the way MINDEF performs common administrative services, and created new value and convenience for its customers. By bringing together the various services into a single centre, MINDEF has improved service standards, and saved or avoided $4 million in costs in the first one and a half years.

3.7 We plan to roll out to the rest of the public sector this idea of aggregating common services. We should centralise the common administrative support services of different ministries. Public sector agencies are already aggregating their demand for common goods and services to get better prices. For instance, 30 public sector agencies recently aggregated their demand to procure their electricity supply for 2005 and will realise savings of $8 million.

3.8 The Government’s Economy Drive is supported by the Cut Waste Panel, which receives feedback and suggestions from the public. To date, the Cut Waste Panel has received over 3,100 suggestions and agreed with 85% of them. One writer had suggested that monthly CPFIS statements were too frequent and should be reduced. The CPF Board has therefore started to issue such statements every six months, saving nearly $0.5 million a year. Such suggestions help to keep the public sector efficient and on its toes, and I encourage the public to submit more.

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