Review of Undeclared Development Project Savings and Establishment of Central Disclosure Framework for Project Costs and Savings

Dr Wan Rizal asked the Prime Minister and Minister for Finance following the identification of 11 Ministry of Health projects where savings were not declared promptly (a) whether Ministries and statutory boards have conducted corresponding reviews of active and recently completed development projects; (b) what is the value of such undeclared savings identified; and (c) whether the Government will establish a central disclosure framework showing material project savings, approved redeployments and final project costs.

Mr Jeffrey Siow: Ministries and statutory boards are required to ensure that their spending on development projects is prudent and within budget. In addition to the declaration of savings, there are other control mechanisms to manage project budgets and provide oversight, such as requirements for re-approval of costs exceeding approved budgets, and project cost monitoring through the Ministry of Finance's central budget information technology system. These are supported by periodic audit processes. Savings also cannot be deployed to other projects and are automatically retained within the Government's central pool.

The Government is reviewing the framework for declaration of savings as part of ongoing efforts to improve and streamline processes. The review will take time and will involve assessing audit-based and proactive monitoring approaches while ensuring reporting processes are proportionate and not overly burdensome.