Andrew Loh / Deputy Editor
“I want to acknowledge that the Government has done the right thing to defer the last installment of the pay increase and also to take a salary cut of 19%,” said Mr Tan Kin Lian in a posting on The Online Citizen. “I also want to acknowledge that PM Lee has been magnanimous in not taking his salary increase during the past years.”
I too would like to credit the Government for taking a pay cut for 2009. It is a good move as it shows leadership – something we haven’t had for a while it seems. In a year of lapses, flip-flopping and, most recently, arrogance, we should applaud the Government for finally doing something worth praising.
Of course, there will be some (perhaps many here) who will see this pay cut as well, “grandstanding”, “inevitable” or just plain pre-election politicking.
Damn if you do, damn if you don’t.
In an earlier article on TOC, I asked if the People’s Action Party government would choose to “stay together” with Singaporeans, or “move ahead” with the third pay rise which was scheduled for the end of this year. Apparently, the government has chosen to “stay together” with Singaporeans and have deferred the third pay hike. In doing so, the salaries will be at 56 per cent of the benchmark come 2009. Presently it is at 77 per cent. If a third hike had taken place, salaries would be at 88 per cent of the benchmark.
Critics will look for holes in this and lambast the government and particularly Prime Minister Lee Hsien Loong – for the fact that he, as leader of the government pack, is ultimately responsible. Perhaps critics will point to the fact that the lower pay next year is due to the formula which reflects the sluggish economy rather than any voluntary reduction by the ministers. But one should not forget that the deferment of the third pay hike is a voluntary move. We, of course, can argue that “it is only right that their salaries are cut because they already are the highest-paid public servants in the world”. But lets not confuse the one with the other. Whether they are the highest-paid is a separate matter. I, like Mr Tan, agree that they should not be so highly-paid.
What is more important now, however, is how the average Singaporean, and especially the lower-income Singaporean, is going to cope in the next two or three years of recession. “I am not so worried about the high salaries of the government ministers,” said Mr Tan. “I am more worried that the low income people are not earning enough.”
Whether the cut and deferment for ministers’ salary is a political move does not really matter at the moment. What will matter – to the PAP as a political party and Singaporeans in general – is whether the government will be able to help Singaporeans through the next two or three years when unemployment is expected to double and when thousands start having difficulties living day to day – how they will cope with mortgage loans for their homes, paying their utilities bills, sending their children to school, keeping their own jobs, etc.
If the PAP government is unable to provide solace and leadership in this, disenchantment with the situation will cost it politically – and it won’t be because Singaporeans think ministers’ pay is too high.
The economy is the key and not the pay cheque for ministers.
But for now at least, let us give credit where credit is due. The government has done what many of us have said they should do – forego a salary hike in these bad times.
As for PM Lee, well, his announcement in April that he will donate his increment to charity for the next five years should also be applauded, though some (like me) believe that he did it to take some heat off the debate in April.
Whatever it is, now that they are not going to get the increase, lets focus on the issues and problems which many Singaporeans are facing.
We can revisit this issue of ministers’ pay when it comes up again.
And for sure, it will.
All eyes will now be on the upcoming budget.
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It’s funny that out PM is able to announce the pay-cut, but unable to decide the unreasonable electricity rates to be cut with immediate effect for the good of the whole of Singapore.
greenhob
thats a good point
whats more important now is to lighten the burden of many low & mid income singapore household
taxes in the forms of utility bills (electric tariff, water conservancy etc), estate maintenance (HDB conservation), and misc (TV license) should be reviewed and reduced as much as possible
I am not touched by such tokenistic gestures.
In fact, I worry what comes next.
I think we will see our CPF being cut next year.
Don’t say I never see beyond simple fools’ vision.
Now that there are some excess funds due to the pay cut, time to lower the burden on lower and middle income groups.
I’ll really like to think highly of our government, but I can’t now as it shows that it is a weak one.
Strong, great men do not need to implement policies to take care of themselves and their cohort. Strong, great men will take care of the ordinary people FIRST.
If a government can’t win the hearts of its people and their utmost respect, then, it would have to be considered as failed.
Even if they were to cut their pay by 80%, they will still be paid more than most
of the world’s leaders. In the first place, they decided their own pay by pegging
to the top income earners ( this way they always win since even in bad times,
there will always be some people who earn much more than the rest) without
consulting the people, but through their majority in Parliament, like most of their
unpopular policies
As someone says, its just plain tokenism.
I still don’t see any sacrifice on their part.
Like I said, their pay cut is to make us swallow our CPF cut later.
Simple as that. Nothing noble about them.
I find the TOPIC- ___Kudos to Govt for pay cut and deferment seem kind of
TOO NICE to them!
Sorry begin too straight forward,,,I don’t think That CUT is well enough!!!
Let PAP buy my votes. I will give my vote to PAP if they the ministers and senior officials lower their pay further by another 40% in 2009 and hold it till 2011. :)
As the saying “Lead by Example”. Our leaders are finally showing some leadership this round.
Singapore is a small country, the elected leaders want to run it like a corporate and not a country is a definite wrong mentality. They have to run it like a corporate and yet keep a decent heart to heart touch to the citizens who elected them.
Bear in mind many Singaporeans want “change” in the coming years. The usual “Do it first, then announce, finally they will accept” policy setting method is not allowed anymore in this fast pace cyberspeed new world.
60) ErniesUrn on November 26th, 2008 5.59 pm
Let PAP buy my votes. I will give my vote to PAP if they the ministers and senior officials lower their pay further by another 40% in 2009 and hold it till 2011.
They cannot or else illegal corruptions will kick in, for now it is still legal, so its OK!
After Jan 22, 2009, when I am no longer President, can I join your parliament? I hear your members of parliament make about twice what I make.
I will have less responsibilities. I won’t have to send any young men to war. I won’t have to deal with 100 times more people than you have. And yet, I can still make more money.
Make me a citizen. Sign me to your parliament… please… pretty please…
Oh and yes, if you allow me into your parliament, I can be in there till I die, right?
I am so glad you don’t have term limitations in your government. That would be a great source of retirement income for me, since the US didn’t pay me quite that well.
Can I also just allow my daughters to replace me when I die? Or when I am too old to continue in your parliament? I hear it’s been done before.
I like your country. I love your country.
Oh, but I can’t say negative things about the government, huh? Oh well, I guess with that kind of income, I can live with it. I will just shut up and collect my retirement.
Quick, where do I sign to become a citizen?
I think CPF will be cut in the next budget, at least 4%-5%. I am really worried for those struggling to make payments on their expensive mortgages. Cutting cpf helps to keep companies running costs lower, but create a host of other problems for the poor and tightly squeezed middle class. I think employer and employee CPF contribution should be reduced at the same time. Reduced GST will be very positive but dun think money faced gahmen will do that.
Reduce GST? No way.
We got to feed da very talented millionaires you know.
2 years time they pay hike is it?
My friend jokingly told me,
in 2 years time his boss promise him pay hike.
he said he is the sole proprietor of his own company and he also is cum the employee.
I could only envy.
44) Mr Tan Kin Lian has made a very interesting proposal. Ot pegs ministar’s pay to 10 x national average family income. This annual pay of 10 X 12 X $6,280 = $753,600 per year should attract a ready pool of local talents to take up the challenge to manage our state affair for the public good.
Furthermore, ministars enjoy state pensions at a level tied to their final income when they relinquish their posts for the whole of their lives after retirement. The loss of this guaranteed pension benefit alone could be a big deterrent against corruption.
George Bush of 63) and 64)
Dear George,
I’m so sorry to disappoint you. You see, in SIngapore, we will import all kinds of Foreign Talents for all kinds of trade except the oldest profession – prostitution, oops, I mean politicians.
We are an open economy, we accept foreign IT professionals, foreign bankers and financial experts (plenty in GIC & Temasek), foreign construction labour, foreign maids, foreign cleaners to make our old Singaporeans jobless and of course, foreign prostitutes.
No worries though. You can stay in USA and still make some. With Barack Obama taking your POTUS post, you can be the Senior President.
Oh, don’t forget your Dad.
He will be the President Mentor of the USA.
If you do not know how to go about it, give Harry a call.
Cheers,
feedmetothefish
Their pay are already sky high, a reduction of 15-19% is nothing to them. A 25% cut for the top earners would be more realistic. Nevertheless it is a good start.
salary can go up, stay the same, or go down. Often pay decreases below the initial point, when the company/economy is not doing well.
When the economy is doing well, the minister pay increases. When the economy is not doing well as in, being in a recession, the minister pay go back to the 2007th level. If this recession persists beyond 1 year, would the minister’s pay go back to the 2006th level?
When that happens, then we will know if the mechanism is really working..
2007 our GDP is around 7-8% growth. Now 2008 GDP growth is around 2.5% and next year a big NEGATIVE hanging over us.
When the gahmen cut the salary back to 2007 level is it good enough? What level is considered fair? I think they should return their pay structure back to 2004. in 2003-4 we had a recession brought forth by SARS. We are going to have a mother of all recession since depression mentioned by economists worldwide. I think the pay structure of all top civil servants and ministers must go back to the 2004 level. This is to show the people that you elites understand and share the woes of singaporeans. Easy money all these years have breed alot of out of touch, stupid, arrogant and incompetent ministers and top civil servants. In this year alone, we all have witnessed how incompetent our gahmen really is. From MSK escaped from high security prison, very very bad investments, poor control of MAS allowing toxic products to be sold to people, show of ZERO leadership,Town council lack of financial controls, inflation brought higher by raising fares, electricity tariffs, food costs and expensive HDB flats some costing $700K for a 5 room. I really cannot think of a reason why they are still getting millions of taxpayer monies?
What the incompetent leaders can do sincerely:
The president(prata man) and all ministers should be entitled a 50% pay cut. The people insists. Not happy quit lah, get a MNC job since u are a top talent from A team.
Top civil servant from the highest should get 40% pay cut and each leve below will have a reducing cut of 5%. Of course, their performance are generally poor, not happy quit lah. Sure a lot of high paid jobs around since u guys are also talents.
63) George Bush on November 26th, 2008 6.39 pm After Jan 22, 2009, when I am no longer President, can I join your parliament? I hear your members of parliament make about twice what I make.
If I am elected as president of singapore, there are only 3 main things I will and must immediately do. 1) withdraw at least 50% of total foreign investments 2) return all the cpf monies back to all citizens 55 years and older, and 3) all ministers’ salaries cut down by 50%, at least.
These 3 things will definately keep me in office for at least another 3 terms, easily. No need to bullshit, no need so many ministers to give all kind of excuses and lame talks, no need to give threatening words, no need to lie, just speak the truth to the people and the rest will just work out fine.
aiyoyo
from nov24 CNA :
“Up to 19% pay cut for top civil servants; lower year-end bonus”
not sure who are the civil servants cut pay, by how much %?
aiyoyo
They are cutting blah blah pay for themselves (govt), not for you!
This is a little like donating lots of money after you’ve killed a few people.
Of course, there will be some (perhaps many here) who will see this pay cut as well, “grandstanding”, “inevitable” or just plain pre-election politicking.
–> of course this is pre-election politics. What is a salary cut of 19% when you are already earning humongous amounts of money and are rich beyond your wildest dreams?
However, I am worried. Weren’t the high salaries justified by the fact that extremely well trained talents are needed for government? Will the quality of government now suffer?