Studying United Kingdom's Public Procurement Subcontracts and Payment Spot Checks Processes for Local Public-sector Contract Application
Ministry of FinanceSpeakers
Summary
This question concerns whether the Government has studied the United Kingdom's 30-day payment terms and spot checks for public procurement subcontracts to potentially pilot a similar model for major local public-sector contracts. Mr Victor Lye raised this query to the Prime Minister and Minister for Finance to address prompt payments to subcontractors. In response, Mr Jeffrey Siow affirmed the importance of timely payments across supply chains but noted that transactions between principal contractors and subcontractors are private commercial arrangements with less Government visibility. He shared that the Government will continue collaborating with trade associations and chambers to study overseas payment practices, including those from the United Kingdom and Australia. Furthermore, the Government is supporting a workgroup established by the Singapore Business Federation to develop a Prompt Payment Code of Conduct tailored to Singapore's business environment.
Transcript
71 Mr Victor Lye asked the Prime Minister and Minister for Finance (a) whether the Government has studied the United Kingdom's requirement for 30-day payment terms to flow through qualifying public procurement subcontracts and payment spot checks; and (b) whether a similar approach could be piloted for major Singapore public-sector contracts.
Mr Jeffrey Siow: My response will also address related questions on prompt payments filed by Mr Victor Lye in today's Order Paper and for a subsequent Sitting. If the Member is satisfied with the response, he may wish to withdraw his question after this session. [Please refer to "Ensuring Prompt Payments Reach Subcontractors in Public Contracts and Requiring Major Contractors to Report on Subcontractor Payment Performance", Official Report, 10 September 2026, Vol 96, Issue 37, Written Answers to Questions section.]
The Government recognises the importance of prompt payment throughout the supply chain, including payments from principal contractors to their subcontractors and suppliers. Timely payment supports business cash flow and strengthens supplier relationships.
The Government is committed to paying our suppliers promptly. However, payments between principal contractors and their subcontractors or suppliers are commercial arrangements between private parties which the Government has less visibility on.
The Government will continue to work with our trade associations and chambers to study the payment practices of other countries, such as the United Kingdom and Australia, to strengthen payment practices. We are supportive of the workgroup set up by the Singapore Business Federation to develop a Prompt Payment Code of Conduct to encourage fair payment practices between businesses. The workgroup will study how the key learning points from overseas models and private sector practices can be adapted to Singapore's business environment.