Tan Kin Lian's Blog: Pay of Government Leaders

Sunday, March 14, 2010

Pay of Government Leaders

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28 comments:

hongjun said...: SG stand tall!; March 14, 2010 7:22 AM
Anonymous said...: In Singapore, if you give top pay, you may get top talent.

But if you don't give top pay, you will definitely not get top talent.

That's why they think it is still better to give top pay, at least got some chance to get top talent. If don't get, just write off lah, just like those billion $ losses, which they also said is unavoidable.

And it helps a lot that it is also unavoidable that they will get elected again.

Hahahaha.; March 14, 2010 8:07 AM
Anonymous said...: REX comments as follows,

Wasn't it Humpty Dumpty who climbed up a wall too high for its size, who fell down and broke his crown and head and even the kings men could not cure him? I see our dear leader sitting on a wall of money too tall for him. What had he done to the country that other leaders have not done to theirs? I don't know at all.

Anyway for the record, here are some figures someone sent to me:

The TOP 20 highest paid politicians in the World are all from Singapore:

1. SR Nathan - S$3.9 million.
2. Lee Hsien Loong - S$3.8 m.
3. Lee Kuan Yew - S$3.5 m.
4. Goh Chok Thong - S$3.5 m.
5. Prof Jayakumar - S$3.2 m.
6. DPM/Home Affairs Wong Kan Seng - S$2.9 m.
7. DPM/Defence Teo Chee Hean - $2.9 m
8. Foreign Affairs George Yeo - S$2.8 m.
9. National Development - Mah Bow Tan - S$2.7 million.
10. PMO Lim Boon Heng - S$2.7 m.
11. Trade Industry Lim Hng Kiang S$2.7 m
12. PMO MLim Swee Say - S$2.6 m.
13. Environment- Dr Yaccob Ibrahim - S$2.6 million.
14. Health Khaw Boon Wan - S$2.6 m.
15. Finance S Tharman - S$2.6 m
16. Education/Defence - Dr Ng Eng Hen - S$2.6 million.
17. Community Development - Dr Vivian Balakrishnan - S$2.5 m.
18. Transport - Raymond Lim Siang Kiat - S$2.5 m.
19. Law - K Shanmugam - S$2.4 m.
20. Manpower Gan Kim Yong- S$2.2 m.; March 14, 2010 8:23 AM
Anonymous said...: Everyone knows it is too much. Nothing anyone can do if the ruling party wins in the election as this very people keep using the winning margin to claim that the majority of the people endorse this high salary because the people think that the government is the best in the world and thus deserve millions while the taxi problem, high living cost problem, high HDB price problem, low birthrate problem , ageing problem, high inflow of foreign workers problem, lots of "cheating people" financial instruments e.g. land banking, minibond problems, high cars' cost problem are yet to resolve after all these years.

Maybe everyone should add a line or two to list down all the unresolve problems thus showing to the ministers they don't deserve such high salary after all.; March 14, 2010 9:22 AM
Anonymous said...: I always knew our leaders stood "head and shoulders" above other world leaders!

Singapore leaders are indeed world class. Best of breed.

Well done! You have done us proud!; March 14, 2010 10:49 AM
Parka said...: I've no problem with paying that much salary to them, but it must be tied to some concrete performance criteria, and most definitely it must come with a money back guarantee.

The real question isn't how much they are paid. It's whether if it's justified to pay them so much.; March 14, 2010 12:34 PM
Anonymous said...: Hi anon 10:49,
In term of capability, our PM LHL (managing 5 mil. population) is far far away if compare with China PM Wen JB (managing 1.3 bil population). LHL obviously do not deserve such high pay.
Go to China big cities have a look, Singapore is now far far behind China (those big cities with above 10 million population).

John Lee; March 14, 2010 12:48 PM
Anonymous said...: Rex 8:23 am,

I thought except for Pres Nathan and PM Lee, the specific pay of other ministers are not public knowledge? They are paid 7 figures of course but how much (up to 2nd figure) is not publicly revealed.

How reliable is your source? If it is really reliable, your source must have breached the Official Secrets Act!; March 14, 2010 1:08 PM
Ghim Moh Resident said...: Hi Mr Tan,

Just my brief view on government pay in an economic point of view.

First, we must know that it the private sector that create jobs, not the public sector. Public sector can faciliate job creation. Public sector can't create jobs by themselves simply because they have to tax people so that they can pay people in the public sector, support the public sector. Taxing people to support the public sector is not job creation.

I am fine with high minister pay but as they are from the public sector, their pay should never be higher than the private sector. The private sector is actually their pay-master.

So as a rough gauge, our prime minister pay should never be higher than a CEO of an established company.

Higher pay in public sector than in private sector is unsustainable in the long run because you can only tax so much from people in the private sector to pay high wages from people in the public sector.

We should always be alarmed when public sector pay is higher than people working in private companies.; March 14, 2010 1:37 PM
Ex-Con said...: Why should the salaries of our ministers be secret and bound by OSA? If president and pm's pay can be revealed, why not the rest? Their salaries, bonuses, and privileges (e.g. housing, transport, medical, insurance etc) are all paid from taxpayers monies, every single cent!

What is so sensitive and detrimental to Singapore's national security that such things are top secret? As elected public servants to the state, they should have a greater governance transparency than listed companies, and publishing the remuneration of top management is one of the criteria for good governance. The only secret they are protecting is their own embarrassment and to avoid public scrutiny and questions.; March 14, 2010 2:25 PM
Anonymous said...: GOOD POINTS SINGAPOREANS! DONT JUST TALK PLEASE.............!!! VOTE OUT THIS GOVT IF U DARE AND U CAN!!!; March 14, 2010 3:02 PM
Anonymous said...: So much for KLKK job? The labourers work harder . These ministers spend touring the estates and yet get paid so high. it is outrageous.; March 14, 2010 3:04 PM
Anonymous said...: Maybe some thinking to consider.
If these ministers work in the private sector, will they have a higher pay?

Lets say we give them meaningful pay like the rest of the minsters in other countries, what kind of talents would join the governement?

Do we want our ministers to have better credentials like being a CEO or in high management or someone who had never managed a company?

Singapore is a small country, the moment a talent is spotted, its snapped straight away. you dont want them, others would grab them.
As a singaporean, we like to think ahead, thinking of how to survive in the future, what kind of lives we want to live in and how to support the well being of a family. With a lower pay, what are the views of political wannabes be if they knew the results of their well being in the long term.

3rd generation singapore is different from 1st generation. Its more difficult to build on legacy system than build on nothing. In the past, we can just build, build, build, without caring about any views. However in the 3rd generations, many system and policies are crafted and embedded into the minds of singaporeans. Any change will cause a furor and great inconvenience. Thus, its a more difficult job than before. As a result, taking broad steps are less seen nowadays.Instead small and steady steps are the path we took.

The pay of the ministers might just be a small sum to pay than if we pay a small wage and pay a big sum in the future.

v; March 14, 2010 3:05 PM
Anonymous said...: We can't measure our ministers' pay with common sense because it does not make sense to pay so much. This is proved to be the fact when we can't even find other country pay a minister close to ours. All of us are upset and angry but no one can stop it from happening. That's the reason why they are paid at these figures.; March 14, 2010 4:12 PM
Anonymous said...: Singapore ministers'pay should be submitted to Guinness World Records for verification if we are to be number one in the World for highest paid government servants...
ps:
pls spare a small thought for those lowly paid workers.These ppl work long hours to survive and still get a very small amt monthly.Who can help these ppl and most of them are over their 60s.

a cleaner at Tekka Hawker Ctr.; March 14, 2010 5:50 PM
Anonymous said...: Our leaders kept telling us that we need to be competitive. Can you imaging if your managers are paid 10 times more than your competitors anywhere in the world?

I hope they would eventually get some sense of proportion. Their justifications and benchmark are immoral! Taking advantage of their majority presence in the parliament is a shame.

If they are in the USA, I suppose they would ask to be paid by the billions!; March 14, 2010 7:38 PM
Ghim Moh Resident said...: Anonymous said...March 14, 2010 3:05 PM

Political wannabes want to work for government because of pay?

We have a big government and I think what we can do is to stop expanding. Ever wonder whats the difference between Spring Singapore and IE Singapore? Difference between GIC, Temasek and Fullerton fund management? If we can shrink government, these areas can be looked into.

Nevertheless, after watching channelnewsasia earlier about Cambodia (730pm to 830pm) and a good dinner, we are lucky and fortunate Singaporeans afterall.; March 14, 2010 10:12 PM
Anonymous said...: REX comments on anon 1.08 pm's post as follows:

You mentioned "Official Secrets Act" of Singapore. I hope you know what you are talking about. I don't, so, I went to the website http://statutes.agc.gov.sg/non_version/cgi-bin/cgi_getdata.pl?actno=1935-REVED-213&doctitle=OFFICIAL%20SECRETS%20ACT%0A&date=latest&method=whole

I learnt that the term "Official Secrets" is clearly defined, and they refer to information pertaining to sensitive installations and defined prohibited places, as well as forgery and other offences that will sabotage the interests of the Republic of singapore. Go to the website see if i missed out anything?

So, I found that there's nothing there to state that the President's or any Minister's salary is "Official Secret". It is a personal secret, ok, ok ok. My salary is my secret. Your salary is also your secret. But surely it's a private secret, as in, your private life whether you are gay or not gay. Who cares.

As we know, internet information is "let the buyer beware". You may chose not to believe it. You may even chose to believe that actually, Pm Lee only draws $20,000 a month, not "200,000" Of course information on the net is not always reliable, but in this instance, many people I suppose, believe it to be true. Had it been otherwise, i am sure Pappies would point out the error themselves since this kind of rumour isn't very self edifiying had it been a falsehood.

rex; March 14, 2010 10:26 PM
Conspiracy said...: I would rather pay 200 million to PM Lee than pay that peanuts to Obama. I am waiting for Obama to finally reveal to the world how his country is going to resolve its TRILLION dollar debts... Wait, I think he blinked.

Wait... I think they are finding even more ways to spend billions of dollars... How about the education bill?

Let's see, does Singapore have any debts? Wait I think we have some billion dollar reserves.

The only thing I cannot argue is, the GICs holding all that American debt in Citibank and financial institutions.

If they continue holding it, the losses will start to mount.; March 14, 2010 10:31 PM
Anonymous said...: People should stop complaining about other people's pay! It's sour grapes mentality! Why not aspire and aim to be a minister as well so that you can earn that kind of pay? Most of the ministers also have humble background so if they can do it, why not you?

If TKL run for President and got elected, would he complain about his pay? Would any of you complain about his pay?

So, enough of grumbling and complaining about our leaders pay! Let begones be begones and move on.

This is the time to close ranks and rally behind our leaders. Vote for them and their long term policies for Singapore. As this will probably be the last time that our great father of Singapore will stand for election, let us support the People's Action Party and give them a strong and resounding mandate (at least 75%) to lead us in the new decade!; March 15, 2010 12:00 AM
C H Yak said...: I do not think the Official Secrets Acts would ever cover public servant & Ministers' salaries.

Ministers' salaries are pegged to the benchmark of a few private sector top earners in various professions in Singapore. I believe only the IRAS know the earnings of these top earners.

Even the CPF Board need not know the salaries of these top earners since there is an income ceiling cap of $4,500 for CPF contribution. Above this cap, there is no need to pay CPF.

I believe personal income is classified personal information, especially for high income earners. So how do our Govt know the earnings of these top earners if it is classified? It must be from IRAS. If IRAS can revealed such classified personal information for the Govt to peg their own salaries, how "secret" could the salaries of Ministers be? Especially when they digged out income earnings of top private sector earners to peg their own salaries.

I do not think there would be any results from such "chicken-or-egg-first" arguments on "Official Secrets Acts". LOL; March 15, 2010 12:14 AM
Anonymous said...: Malaysia decided to put their "gst" on hold.

This is a good news. A news people would like to know/hear more than thir "pays".; March 15, 2010 7:41 AM
Anonymous said...: Ref Anon's comment:
"I would rather pay 200 million to PM Lee than pay that peanuts to Obama."

If I understand you correctly, you would pay pay peanuts to Obama who;

- controls the mightiest military in the world
- who has to straighten out a multi-trillion dollar mess left behind by the Republican conservatives
- who runs a country with population of 300 million (S'pore population = 4.8 million)
- a country with an area of 9.83 million sq. km. (S'pore land area = 582 sq km)

Interesting. You must be a Singapore certified expert on productivity and salaries.

On your point "Let's see, does Singapore have any debts? Wait I think we have some billion dollar reserves."

Let's see;
- China has US$2 Trillion in foreign reserves
- Premier, Wen Jiabao's salary (approx US$10,500)

Source:http://www.bbc.co.uk/blogs/thereporters/markeaston/2009/04/world_leaders_cheap_at_the_pri.html)

This BBC article is very interesting because it takes a leader's salary and divided it by the GDP per head. Results in a SALARY / GDP per capita

So the leader's salary is measured against his country's per capita GDP. In a sense, measuring salary against performance.

China (best value) = 4.2
India (lowest in the table of 14 countries) = 53.8
USA = 8.7

Singapore was not included. But let's try and calculate ourselves anyway.

PM LHL Salary: S$3.8 million = US$2.7 million
S'pore per capita GDP: US$35,515 (2009)

SALARY/GDP per cap: 107

I think ANON needs to read and travel more widely.

Global land area =
148,940,000 sq km

Singapore land area = 582 sq km

Global population = 6.7 Billion
S'pore population = 4.8 million

Shanghai's population = 18.88 million
Manila's population = 20 million

Somehow, the Malay proverb comes mind:
"A frog living in a well, thinks the sky is the size of the hole at the top of the well."; March 15, 2010 7:42 AM
Anonymous said...: REX comments as follows,

I have heard of the "sour grapes" argument several times before. Some people think that commenting on Minister's pay is a sign of "jealousy".
I don't think so. "Jealousy" means you don't have something, you want something others have. In the bible it is called covetousness, and it is one of the sins under the Ten Commandments.
It is not jealousy because, i don't even want 3 million a YEAR. It is good enough for me to have 100,000 a YEAR to be comfortable (even less, if i have been already working for 30 years, since i have accumulated wealth already). I cannot be jealous of something i don't need. What i am going to do with 3 million a year? There is a law of diminishing returns. Too much of something IS COMPLETELY USELESS. It is a waste of resources. It is like forgetting to close the tap, the water just wastes away, it could hae been put to better users. THAT IS THE WHOLE POINT. Not Jealousy.

Another reader suggested that our PM is much better than President Obama, so he deserves his salary. Even if i agree with the reason he gave (which I don't), where do we stop - pay LHL 5 times Obama's salary? Why not 6 times? Why not 10 times? How about 100 times? How do you calculate the number that leads to their salaries, if they are so good?

I went to the Minsitery of Finance Singapore Budget website and check out the Prime Minister's Office staff costs. It was only about 0.3 % of the Total 2010 Budget of Expenditure of Singapore. Oh yes, if you compute salaries by relating to budget of the country, you may say 0.3% is peanuts. But this is unfair playing with statistics. I give example: An agent who spent 1 hour selling a $1 million house gets commission of 2%($20,000). He coud spent the same time to sell a $100,000 house and get only $2,000. Is there significant difference between the efforts made selling a bigger house and a smaller house, to justify such a huge commission? Commission is a dirty word, because the percentage cuts are pegged to items which don't necessarily relate to the effort put in. Same as in the political scenario as per the salary.

Finally, the argument that "we should move on and stop grumbling about their salary". It is none of my business if CEO of XYZ company gets paid huge amounts. It is a commercial entity and the company is profit driven and can pay him what they like to. However, minister's salary are TAXPAYERS money at source. Taxpayers money can be allocated to many other areas of development in a country, unlike a commercial private company which is duty bpund only to make profits and nothing else.
Open your eyes big big.
Do not be like a deaf frog, cannot hear.
Do not be like sheep ready to be led to slaughter, day after day, year after year.

REX; March 15, 2010 7:44 AM
Anonymous said...: Stop complaining, no way, not when
I am a retiree with no pension,
not when I am umemployed with no
unemployment benefits, not when i
have to foot expensive medical treatments, not when I have to pay GST fromm my ever shrinking savings. Not when I see red over
Goh Chok tong still receiving high pay after stepping down as PM, not when i realise to my dismay, these Ministers would collect tidy pensions when they actually retire,
and not be conferred silly titles like Senior Ministers and Mentor Ministers and still collecting salaries and travel unnecessarily on tax payers' expenses. For lack of space, I'd stop writing temporarily.; March 15, 2010 11:32 AM
Anonymous said...: I envy the post of our President. Shake hands, attend ceremony and charity show and still collect hefty salary.; March 15, 2010 3:24 PM
DareToAct said...: Top pay for top talent is okay, only if they deliver.

If they don't deliver, they should be sacked.

The top rewards must go with the risk of losing the job.; March 15, 2010 5:07 PM
Conspiracy said...: Are you talking about the mightiest military in the world engaged in 2 wars bleeding billions of dollars every month?

How about when Obama increased the troops in Afghan which even Americans are complaining about.

Yes I wouldn't pay Obama a single cent for him to increase troop count in Afghan.; March 15, 2010 5:45 PM

Sunday, March 14, 2010

Pay of Government Leaders

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