Government projected to spend more than $3 billion on ICT in FY23

• $1 billion for applications developed on the cloud

• Co-developed projects with industry will account for almost half (45 per cent) of projected spending, up from a third in FY22

• New bulk tenders to further aggregate demand for ICT services

• Sustainability criteria to be incorporated into evaluation process starting in 2H 2023

The Government will spend an estimated $3.3 billion on info-communications technology (ICT) this year^[1], building on past years’ investments to modernise its digital infrastructure and develop better services for citizens, businesses, and public officers. In total, the Government has invested about $16 billion in ICT over the last five years.

^[1] Projected ICT spending was $3.8 billion in both FY22 and FY21. Past efforts to aggregate demand for ICT services through bulk tenders, and to modernise the Government’s backend ICT infrastructure through the cloud, have resulted in cost savings.

More co-development of application projects

The value of projects co-developed with industry is expected to increase to about 45 per cent ($1.49 billion) of total spending in FY23, up from 27 per cent and 20 per cent in FY22 and FY21 respectively.

Co-developed projects^[2] streamline development efforts by leveraging the SG Tech Stack and other government platforms for security compliance and interoperability, as well as reusing well-tested software components to build applications efficiently. There are currently 27 vendors qualified to co-develop projects with the Government using the SG Tech Stack. This list of vendors will be refreshed with the Agile Co-Development and ICT Professional Services bulk tender ($0.62 billion) to be called in FY23.

^[2] In co-developed projects, government engineers/developers may be responsible for building one component while their industry counterparts build another. This differs from the traditional outsourced model, where the project is built entirely by a vendor based on the requirements stipulated by the government agency.

Introduction of sustainability metrics

The Ministry of Sustainability and Environment has earlier announced the inclusion of environmental sustainability criteria into government ICT contracts beginning in 2024. The upcoming PC & Printer bulk tender will require suppliers to comply with environmental and energy standards, and practise packaging and materials reuse. These criteria will constitute five per cent of the tender evaluation.

Beyond the PC & Printer bulk tender, GovTech is working towards reducing the cloud infrastructure carbon footprint in the GCC and government data centres to meet BCA-IMDA Green Mark^[4] standards, and optimising code reuse for cloud projects in FY23. GovTech will explore increasing the containerisation of applications and usage of microservices to further automate and streamline the application development process in FY24.

Mr Kok Ping Soon, Chief Executive, GovTech, said: “Our ICT investments in the past five years have laid a firm foundation for the next bound of digital government. The Government will maintain a high level of ICT spending in 2023, as we continue to push ahead with our cloud strategy and find more ways to work closely with the industry through co-developed projects and bulk tenders. Providing opportunities for SMEs to take on government projects is also important, as SMEs form a key pillar of our Smart Nation efforts.”

^[4] For more information on this scheme, please visit For more information on this scheme, please visit

For media queries, please contact:

Adrian CHAN (Mr)
Communications & Marketing Group
Government Technology Agency
Tel: 9100 4477
Email: Adrian_Chan@tech.gov.sg

Lester WONG (Mr) 
Communications & Marketing Group 
Government Technology Agency 
Tel: 9190 5932 
Email: lester_wong@tech.gov.sg

About Government Technology Agency

The Government Technology Agency (GovTech) is the lead agency driving Singapore’s Smart Nation initiative and public sector digital transformation. As the Centre of Excellence for Infocomm Technology and Smart Systems (ICT & SS), GovTech develops the Singapore government’s capabilities in Data Science & Artificial intelligence, Application Development, Smart City Technology, Digital infrastructure, and Cybersecurity.   

GovTech supports public agencies to manage enterprise IT operations and develop new digital products for citizens and businesses. GovTech is the public sector lead for cybersecurity and oversees key government ICT infrastructure, and also regulates ICT procurement, data protection and security in the public sector. GovTech is a Statutory Board under the Smart Nation and Digital Government Group (SNDGG) in the Prime Minister’s Office.   

For more information, please visit www.tech.gov.sg.
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