Two construction firms fined S$4.6 million for rigging bids for People's Association projects
SINGAPORE: Two construction firms have been fined S$4.6 million (US$3.6 million) by Singapore's competition watchdog for colluding to rig bids for People's Association (PA) projects, the Competition and Consumer Commission of Singapore (CCCS) said on Friday (May 23).
Hunan Fengtian Construction Group and Trust-Build Engineering & Construction were fined S$349,350 and S$4,295,059 respectively. The two companies have until Jul 23 to pay the penalties.
The companies were found to have coordinated bid submissions on three tenders for upgrading works at community clubs in Bukit Batok, Cheng San and Eunos in 2022.
The value of their tenders was about S$56 million (US$43 million) in total, CCCS said.
COLLUSION UNDERMINED COMPETITION
Bid-rigging occurs when suppliers collude on bid submissions for tenders. They might take turns to win a tender by agreeing on terms, or they may choose not to participate in certain tenders after agreeing who should win.
In this instance, CCCS found that Trust-Build was the identified winner, while Hunan Fengtian was the support bidder. Hunan Fengtian had prepared tender submissions on behalf of Trust-Build, even proposing its bid prices for each of the tenders.
CCCS added that Hunan Fengtian was "aware" of Trust-Build's likely bid prices and the contents of its tender submissions despite appearing to compete against the latter for the tenders.
This conduct eliminated the competitive pressure on both parties to present their best offers to PA, the competition watchdog said.
As Trust-Build's bid prices were lower than Hunan Fengtian's, they had a better chance of winning.
Such practices violate competition law, which requires businesses to act independently in the market.
The affected tenders were called between August and October 2022, and were for general construction and major repair of buildings, CCCS said.
The value of the Bukit Batok community club tender was about S$17.6 million, and had 10 tenderers. The Cheng San community club tender was valued at S$21 million and had 15 bidders.
The Eunos community club tender was valued at about S$17 million, and had 11 tenderers, but was later aborted for undisclosed reasons.
Mr Caleb Tan, deputy director of legal and enforcement at CCCS, said that the PA was "very vigilant" when they received the tender submissions. They had noticed similarities in Hunan Fengtian and Trust-Build's submissions, in terms of words and diagrams used, he added.
The PA reported the suspected bid-rigging to CCCS, with both companies subsequently excluded from the tender evaluations. None of the PA tenders were awarded to either firm.
INVESTIGATIONS
CCCS launched investigations in July 2023 and conducted raids at the businesses of both companies in November that year. During this time, CCCS secured evidence from various sources, including WhatsApp messages between both parties.
As part of the legal process under the Competition Act 2004, CCCS issued a proposed infringement decision to both parties in October 2024, giving both parties a chance to respond before a final decision by CCCS.
Although Trust-Build faced a higher penalty than Hunan Fengtian in absolute figures, it does not mean that Hunan Fengtian was "less culpable", Mr Tan said.
Mr Tan said that the two companies were industry contacts. They had previously met at a conference and remained in touch about developments in the market.
The general manager of Hunan Fengtian had colluded with Trust-Build to try to get future business for his own company, as the company had intentions of winding down in Singapore, Mr Tan said.
For Trust-Build, the incentive was for its director to learn from Hunan Fengtian's experience in bidding for public tenders, he added.
Mr Alvin Koh, chief executive of CCCS, said that bid-rigging undermines fair competition, distorts the regular operation of market forces and prevents customers from obtaining genuine and competitive offers.
'In the context of public procurement where public funds are used, taxpayers are the ones who ultimately pay the price of such infringing conduct,' he added.
He urged businesses that are approached to take part in anti-competitive agreements to reject such offers and report them to CCCS.
The commission's leniency programme means that parties that come forward voluntarily with information about anti-competitive agreements may receive reduced or waived financial penalties.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
12 minutes ago
- CNA
Police vehicle involved in accident with cyclist along Keppel Road, officer assisting with investigations
SINGAPORE: Police investigations are ongoing after an accident involving a police vehicle and a cyclist along Keppel Road towards Marina Coastal Expressway (MCE) at around 3.10pm on Friday (Jun 6). Preliminary investigations found that the driver of the vehicle, a regular police officer from the Special Operations Command (SOC), allegedly left the scene after colliding with the cyclist, they said on Saturday, adding that the 30-year-old man is assisting with investigations. The cyclist, a 41-year-old man, was taken conscious to the hospital. Police said the driver was not aware of the collision until the Traffic Police contacted the SOC. The officer returned to the scene immediately to assist with investigations upon being informed, they added. "The officer is assisting with investigations for driving without due consideration of other road users and for causing hurt," said the police.
Independent Singapore
3 hours ago
- Independent Singapore
Violent dispute between stepfather and stepson erupts in Yishun rental flat; both arrested
SINGAPORE: An argument between a stepfather and his stepson escalated into a physical altercation at a rental flat in Yishun on Saturday morning, resulting in both men being arrested. The incident occurred around 10am at Block 510A Yishun Street 51. Eyewitnesses told Shin Min Daily News that police officers were seen arriving at the scene shortly after the commotion broke out. Residents familiar with the family said arguments were not uncommon in the unit, which is reportedly shared by a couple and a man in his 30s, believed to be the woman's son. 'They often argue,' one neighbour shared, 'That day, it turned into a fight. The younger man had a head injury, and the fight even spilled into the corridor.' Photos taken after the altercation showed the aftermath outside the flat — a broken shoe rack lay overturned, with footwear scattered across the corridor floor. When reporters visited the flat later, the unit appeared unoccupied. In response to media queries, the police and the Singapore Civil Defence Force (SCDF) confirmed that a 35-year-old man had been taken conscious to Khoo Teck Puat Hospital. A 57-year-old man sustained minor injuries but declined medical assistance. Both men were arrested for affray. Police investigations are ongoing.
Independent Singapore
3 hours ago
- Independent Singapore
‘Make space for Singaporeans to dream': Business struggles spark debate featuring Calvin Cheng over rent, manpower, and the future of local business
SINGAPORE: A recent Facebook post by businessman and former Nominated Member of Parliament Calvin Cheng has stirred heated conversation online, after he suggested that rising rents are not the primary cause of Singapore's F&B crisis—and that the government should resist interfering in the free market, especially by imposing rental controls or mandating support for local entrepreneurs. Cheng didn't shy away from admitting that the closures have been heartbreaking—familiar neighbourhood hangouts, late-night bars where friends gathered, even family-run cafes that felt like home, have all folded one after another. Yet he urged us to pause before pointing fingers at landlords. 'Most mall spaces are still taken,' he reminded readers, suggesting that behind every lease negotiation is a landlord weighing risks—sometimes betting on higher rents only to discover too late that demand has shifted. In his view, it's not a matter of landlords callously letting spaces sit empty; it's a delicate, often agonising decision that can leave both tenant and landlord worse off if the timing or market dynamics don't line up. 'It is simplistic to just blame rentals,' he wrote. 'Most of the time, landlords also take a gamble during renewal… If they make the wrong decision, they may end up with a lower rent.' Cheng also claimed that many local F&B entrepreneurs overestimate their financial capacity and falter due to inexperience, rather than being unfairly priced out. Manpower shortages and government policy While defending the market's self-regulation on rents, Cheng was more critical of the government's stance on manpower quotas, especially in the service sector. He asserted that tight restrictions on hiring foreign workers could have led to increased labour costs and service inefficiencies. See also Stories you might've missed, June 16 'I am often served by young, inexperienced and/or disinterested local service staff who never see F&B as a long-term career,' he said. 'If the government really wants to do something, they should relax the quotas on foreign manpower.' Cheng concluded that excessive government intervention in the market often leads to unintended consequences: 'When local entrepreneurs shut down, everyone loses their livelihoods anyway.' Yet Cheng's criticism of young local workers in the F&B sector has struck a raw nerve among many Singaporeans, especially youth and their families, who see part-time service jobs not as careers, but as lifelines. In a country where the cost of living continues to rise sharply—from transport fares to food prices and education costs—40% of polytechnic and university students take up part-time work at cafés, fast-food chains, or bubble tea outlets simply to make ends meet. For some, it's pocket money. For others, it's helping to pay for tuition fees, rent, or to lighten the financial burden on their families. To many of these young workers, the implication that they are 'disinterested' or 'inexperienced' misses the point. The service roles they hold are rarely career pathways—they're a means of economic and social survival in the city. For every customer served with a weary expression, there may be a backstory of exams, caregiving duties, or savings goals stretched thin by the realities of urban school life. Backlash from entrepreneurs and advocates His remarks were met with swift rebuttals from industry figures and local entrepreneurs, many of whom argue that the state has a responsibility to protect small businesses in the face of mounting structural disadvantages. Credit: Calvin Cheng Facebook Wally Tham, owner of the social impact marketing agency Big Red Button, issued one of the most widely resonant rebuttals. 'If the government doesn't protect small local businesses, and Singapore cannot produce large enterprises, we won't have a local culture of business,' Tham wrote. 'Imagine all restaurants only serving Mala offerings and all services imported from the West.' Tham's emphasis on preserving space for uniquely Singaporean business voices—both literal and symbolic—was echoed by other commenters who see rental costs as more than just an economic issue. Cheng, however, dismissed this framing. 'Business is not a culture. Business is about making money,' he replied. 'Good service is a business proposition… Culture is just a misnomer.'hmm. The emotional economics of leasing In a separate comment, Kina Huang, who identified herself as having three decades of experience working with landlords, shared a more human-centred critique. She called attention to what she described as a growing ruthlessness in commercial leasing practices, even toward long-standing, loyal tenants. Credit: Calvin Cheng Facebook 'If a business has been around for more than 15 years, they must have been doing something right. And if they have to close, something external must have gone terribly wrong,' she said. See also MOM: 3 workplace fatalities in 2020 to date 'Lease renewal should be renamed Lease Increment Exercise,' she concluded her comment. Huang recounted how only one leasing agent she encountered in 30 years showed genuine empathy toward tenants, suggesting that most decisions in the space are coldly transactional. A bigger question: What kind of country do we want? Do we want a country where only the biggest players can afford the rent and survive, or do we want to make sure there's still breathing room for the smaller spots that give our neighbourhoods personality? It's tempting to let free-market forces decide—after all, high-profile brands bring in foreign investments and big leases fuel massive growth. But when a local hawker or startup can't renew their lease because the rent jumps too much, it isn't just a business closing: it's one less place where friends meet for kopi, one less corner of our community. If the sheer cost of business keeps squeezing smaller operators, soon there won't be any local names left on the storefronts—just global logos. The real test is whether we can find a way to let big and small businesses coexist, so that big brands, aspiring and small entrepreneurs feel at home here. That balance can shape what Singapore looks and feels like in the years ahead.
