PERFORMANCE OF HDB E-BIDDING TENDER SYSTEM

Abstract

As Singapore advances towards a knowledge based industry driven by innovation and rapid advancement in the e-commerce, the power of information technology (IT) has been exploited to enhance the efficiency of the HDB tender system. Since then, HDB allocates its industrial properties through either the conventional or the e-bidding tender system. Much of the preparation work and allocating process are similar for both systems, it may therefore appear to be a hassle having to prepare two tender exercises in a month. With the prevalent usage of internet, the consideration of the e-bidding system to replace the conventional system will be examined in this study. This study looks into the performance of the two tender systems, as well as the factors and reasons influencing the users' choice of the method of tender. The acceptance level of the e-bidding system among the bidders is also examined. It is found that the conventional tender system is the most commonly used system for tendering among the users. The revenue generated from this system is also higher. Factors like age, education, credit card ownership, computer ownership and frequency of internet access are found to be statistically significant in influencing the tender method used. The greater degree of transparency of the online system is found to be the most popular reason for using the e-bidding system. However, security and privacy are still the main concerns, which deterred users from using online facilities. As internet technology is still at an infancy stage in Singapore, it is still early to conclude that the e-bidding system will not replace the conventional system. Moreover, the results have also shown that the e-bidding system is rapidly emerging as the popular method among the users.