They hope to achieve at least 95% of timely payment to businesses.
Senior Minister of State for Finance Indranee Rajah said they are planning to cut the late payment rate for public sector, which comprised of ministries and statutory boards, from the current 6.5% to below 5%.
Rajah noted that the government processes an average of 2 million payments to more than 23,000 companies annually thus by cutting the late payment rate they hope to achieve at least 95% of timely payment to businesses.
In line with this, Rajah revealed that they are working to automate the procurement-to-payment process to help facilitate payments to businesses.
“We encourage businesses to issue electronic invoices when providing goods and services to the government. A paperless and more efficient processing will result in faster payments to vendors,” she added.
Starting this year, all businesses that transact with government will only need to submit their payment details once. “Businesses do not have to submit their payment details every time they transact with a different government agency. This helps to increase convenience to businesses,” Rajah explained.
Businesses can track their payment status using Vendors@Gov mobile app.
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