The word is out – Ministers´ salaries will go up by up to 60%. For permanent secretaries, their remuneration will go up by 66% by end-2008.
However, revisions for entry level civil servants´ salaries pale in comparison – A degree-holder at the management executive level will only receive a total of UP TO 16% increment.
This is a clear sign of the state of income disparity in Singapore, what´s more, being advocated by the government.
It has also been revealed that, up to now, ministers enjoyed a car allowance of 2.5 times their monthly salaries annually. Taking the $1.2 million current salary they enjoy, that would equate to $200,000 of car allowance annually. This allows them to buy a new BMW each year plus some leftover money. Which private sector company offers such perks? It´s no surprise, and high time for them to remove this ¨allowance¨.
Sounds good. But, wait a minute! They will remove the car allowance, but increase the GDP bonus and performance bonus. So is the car allowance removed for good, or is it just disguised as other forms of payments with a simple name change?
As the Car Allowance is no longer relevant, we will remove it formally. In its place, we will increase the GDP Bonus which depends on the performance of the economy, and performance bonus which depends on their individual performance.
- Teo Chee Hean, Minister-in-Charge of Civil Service
Under the new arrangements, high ranking civil servants and ministers will enjoy 7 months of performance bonus (up from 5 months), and if the country´s GDP grows at a good rate, they get an additional of up to 8 months bonus (up from a maximum of 4 months). The question is, will this encourage ¨window dressing¨ by those whose salaries depend on the country´s economic growth? As we know, many accounting scandals in publicly listed companies around the world are results of over-empathsis on financial performance, leading to executives who get motivated to put out nice figures.
Certainly, ministers deserve good salaries for leading the country. However, the question is: How much is enough?
In his same speech, Minister Teo added:
The Prime Minister’s salary currently ranks 164 among income earners. After the revision, the Prime Minister’s salary, at $3.1m will rank 102nd among the private sector earners. In 2000, the PM’s salary ranked 63rd. The MR4 salary currently ranks 769th among income earners. The revised MR4 package will rank 438th compared with 367th in 2000.
Why does the PM´s salary got to be compared with top income earners´? Are we missing out on something, or is the American government too stupid to pay their President just US$400,000? Compared to top income earners in USA, where many of the richest people in the world live, what rank does President Bush hold?
I can imagine him feeling sorry for himself when he compares his responsibilities and salary with that of the leaders of Singapore, a tiny red dot with a soon-to-be population of 6.5million squeezed in, compared to the USA, which also happens to be a major world power.
In addition to his role of running the US government, George Bush´s responsibilities goes well into the international arena where his government´s policies can make or break almost any other nation. If anybody is underpaid, then it must be him. Of course, here again I must empathsise that I do not mean this to be a vote of support for Bush. This is meant to be a comparison of responsibilities and remuneration.
Each minister´s new pay package of $1.9 million can effectively pay for 63 fresh graduates. Of course, this is not a fair comparison since ministers are supposed to be big fish while fresh graduates are more like ikan bilis, however, I like to think that it is a good perspective to look from – is a minister worth this much?
Another comparison – NTUC Income´s ex-CEO Mr. Tan Kin Lian used to draw only $600,000 in his job as head of a company that insures a good bulk of Singaporeans, and he was in that job for nearly 30 years, growing the company from managing a few million dollars worth of investments into a financial giant managing $16 billion of portfolio.
In total, this increment exercise will cost Singaporean taxpayers´ $214 million, or about $50 per capita. That´s expensive.
I feel very sad for Singapore – with our leaders´ patting their own backs and approving their own salary increments, while the below average Singaporean struggles to make a living. This is meritocracy – at it´s best and worst.
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Don’t be sad mr biao. Perhaps, this is a blessing in disguise, something that is needed to jolt the 66.6% up. They trusted the MIW who promised all Singaporeans that no one would be left behind but instead were exploited with more GST, rising costs, ministerial salaries, means testing etc.
A trust betrayed is extremely difficult to win back.
I hope so, but that will be another 4 years’ time. Singaporeans are a mostly forgetful bunch. By that time, the government will be dangling more carrots just before the elections and elated Singaporeans will forget about what happened in the preceding years. Then the government gets re-elected and by the next year starts to implement more taxes and payrises.
Isn’t that what always happened? According to my introductory economics textbook, this is a political business cycle. Hey, I can be an economist too armed with an introductory text!
Actually, I honestly don’t think that our economic policies are any better than elsewhere. It’s just that our citizens are more compliant than those in other countries – we just accept whatever decision the government makes (well, do we have a choice anyway?)… so whatever textbook economic policies they want to implement, they do and of course everything works according to theory.
You may not know this, but I like to touch myself.
I support minstral pay increase. No one can win me in ahgillment. No one can stand against the weight of my interlect. I read alot.
I, the sieteocho.
First time I’ve heard about the car allowance. Since when was having a car a necessary part of an MP’s job? Much less a new car every year? No wonder they have zero sympathy for the overcrowded conditions on public transport. Easy to bleat on about having a world-class public transport system when you never use it.
I doubt our transport minister and those people on the public transport council has ever traveled on public transport in recent years – I wonder what do they know about the pains of public transport…
Similarly, for those ministers who are earning so much – how much do they know/understand about the pains of a regular Singaporean?
With their payrise alone of about $700,000, they can afford 3 new 5 rooms HDB apartments a year, while the rest of us take a lifetime to pay up for a single apartment.
The difference between the next election and past ones will be the internet. The trend is already showing.
Power to the people!
I don’t think the people will forget, and they will not change any carrot but the election system to be all all-over, and all-over your dead body type.
In the past the MIW were able to get away with it because most Singaporeans were ignorant, having only the MSM.
Now, it is different because people are enlightened by alternative media. And personally, I feel that the government has also become more blatantly oblivious to our feedback.
Singaporeans may have been tolerant so far. But there is always the last straw.
Have a say on what are the measurements of good government.
http://www.PetitionOnline.com/7283sgp/petition.html
Erm,
the origins of the word meritocracy are most definitely not shiny white:
The term ‘meritocracy’ was first used, in a pejorative sense, in Michael Young’s 1958 book Rise of the Meritocracy, which is set in a dystopian future in which one’s social place is determined by IQ plus effort. In the book, this social system ultimately leads to a social revolution in which the masses overthrow the elite, who have become arrogant and disconnected from the feelings of the public.
(source: wikipedia.)
http://en.wikipedia.org/wiki/Meritocracy
Think again the drivel that has been fed through the state press as to the merits of meritocracy, and the dystopian future originally envisaged by the word’s creator.
Is the end near?
E.o.M.
Every industry must establish it’s salary structure based on the responsibility and performance of the individual within the industry. This applies to the government and civil service. However, no one should be paid according to someone’s performance. The pegging of the civil service’s pay to the top earners in the private sector is where the entire concept is flawed. Civil servants/ministers are paid according to the performance of the private sector, never mind their performance?
Imagine the CEO IBM is paid the average salary of the CEOs of Dell, Boeing, Lucent, Nortel etc irrespective of how well he manages IBM? Such practice is unheard of. Salaries structure are established based on a person’s responsibilities, qualifications, and ultimately, performance. Thus, a person must be rewarded based on his performance and not someone else performance.
I suggest the civil to establish it’s salary scale once and for all, and thereafter, define it’s performance based on clearly measureable KPIs.
I remembered during Mr Goh’s tenure as PM, he cited that to minimise corruption is to ensure the officials are well provided for so that there’s no cause for them to be corrupted.
Now, they cited that is to prevent a drain of talent to commercial for another pay hike.
There is always a reason for every thing they do. The question is what will be cost of not doing it???
Those who really contributed without much rewards (Goh Keng Swee, Rajaretnam, many others) faded away and LKY reaped the accolades and recognition unashamedly. Naturally, his head swelled beyond his intellectual capability. Regrettably, ignorant people start to believe him blindly. Even his mistakes were grossed over by most. Ironic.
Is it a coincidence that his family members are sitting in all the top and important positions?
MM/GIC- Money Minister / Govt. Investment Con – LKY
PM/FM – Profit Manager / Finance Manager – LHL
Temasek – HC (Seat for pay)
Singtel – LHY (quit for dubious reason)
Pitiful Singaporeans. Pay inflated prices for most things in life. Become indebted to government. Need to work perpetually to pay off everything. CPF sounds good but mostly untouchables. For many, nothing to touch on even. Sacrifice for the country but sacrificed by the country when they are no more economically productive. Live to fend for themselves in old age. Govt’s solution is to make them work to their grave.
All the taxes collected served as “proof” that the govt. has done well. Raise teachers pay, then raise civil servants pay and of course followed by minister’s pay. Welfarism is a liability. Therefore, Singaporeans must pay more GST to support the social welfare programmes. Why can’t the surpluses be used instead??????????
“Not all ministers are up to the mark but they complement each other as a team,” LHL said. Yet, such a big salary increase is justified. This is one of the most ridiculous justification of PAP govt. Singaporeans are really treated like children. Like it or not, what can you do to us? Anyway, 4 years down the road, many of them will be millionaires many times over. They wouldn’t be bothered whether they can still be in govt. It’ll be another windfall for them if they do. It’ll be most disastrous and ridiculous if they still get the same level of support!!!
Fellow Singaporeans. Please take time out to think over the consequences and the predicament that we have put ourselves into. Without change, we will continue to be the modern slaves of our own naivety.