PUBLIC SECTOR TENDERS (Participation of Government-owned companies)

Dr Ow Chin Hock asked the Minister for Finance, since the issue of guidelines for the participation of government-owned companies in public sector tenders, (a) how many public sector contracts have been awarded so far, and what is their total value; and (b) how many of these contracts have been awarded to government-owned companies and what is their total value.

The Minister for Finance (Dr Hu Tsu Tau): Mr Speaker, Sir, guidelines on participation of Government- owned companies (GOCs) in public sector tenders were issued on 31st January 1986. Between then and 7th March 1986, Government awarded over 200 tenders valued at more than $650 million. Only nine tenders worth a total of $61 million were awarded to GOCs. Eight were awarded to GOCs for security reasons. For the remaining contract, there were only two bids which satisfied all the requirements and both were from GOCs. The job was given to the GOC that submitted the lower offer.