Andrew Loh

In April 2007, Singapore’s Parliament debated the issue of ministerial salaries. Prime Minister Lee Hsien Loong, in defending the proposed revision then, said, “We have decided to be open, upfront, transparent – what you see is what you get (Wysiwyg), or, in this case, what you see is what they get.”

PM Lee reiterated this position in March 2009, in an interview with the British Broadcasting Corporation (BBC). “We go on a system which is open, honest, transparent,” he said in response to the interviewer’s question on his salary.

The issue of ministers’ salary is currently being debated between Foreign Affairs Minister, Mr George Yeo, and the secretary general of the Singapore Democratic Party, Dr Chee Soon Juan, on Facebook. (See here).

In the exchange, Mr Yeo seems to have contradicted what the Prime Minister said:

“The salary ranges include a discretionary component decided by the PM which is confidential,” said Mr Yeo in response to Dr Chee’s question on how much Mr Yeo himself is being paid.

Dr Chee replied: “First you say that ministers’ salaries are in the public domain. Then you say that there is a discretionary component that is confidential. However you put it, the bottom-line is that ministers’ salaries are secret. I don’t understand why you keep insisting that they are in the public domain.”

Dr Chee added that the “discretionary component decided by the PM is not small – it makes up nearly half of each minister’s salary.”

In December 2007, civil servants’ salary was revised upwards to 77 per cent of the benchmarks against the private sector. The Prime Minister has discretion on how much bonuses each minister receives. This includes a GDP Bonus which is tied to the performance of the economy, and a Performance Bonus, decided by the PM. Depending on the grade of the minister and the state of the economy, bonuses range from 0 months to 14 months.

“One third of the Ministers’ package is presently variable, after the revision, half is going to be variable,” the Prime Minister explained in Parliament in 2007, “and it depends on two things – the GDP, how well the economy is performing and his individual performance.” PM Lee added, “The Prime Minister decides how much the Minister will get, how he has performed in his portfolio.”

The Prime Minister’s salary is currently S$3.87 million, while that of his ministers range from $1.5 million to $3.4 million.

In response to the public’s letters to the Straits Times and on the Internet about civil servants salaries in 2007, the Public Service Division (PSD) said, “Ministers do not receive any perks. The salary is everything there is.”

While it may be true that the “salary is everything there is”, Mr George Yeo’s remarks that there is a “discretionary component” in the calculation may need to be further explained by the government. Was Mr Yeo referring to the bonus component of the salary?

At the moment, how much each minister receives in terms of bonuses is kept secret. Singaporeans do not know, for example, how much in terms of bonuses Home Affairs Minister Wong Kan Seng received, in light of the escape of Singapore’s number one suspected terrorist, Mas Selamat Kastari, in 2007.

Since the PM and various ministers have insisted that remuneration is “transparent” and, according to Minister Mentor Lee Kuan Yew, “completely above board”, Singaporeans deserve to know what this “confidential discretionary component” is.

—–


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96 Responses to “Ministers’ salaries include a “confidential discretionary component”, says George Yeo”

  1. notalone 15 August 2009

    If i am not wrong, many democratic countries require their cabinet ministers, senators, mayors, people’s representatives to declare their assets upon taking up appointments, and do the likewise at the end of their terms.

    Why is it that Singapore MPs and Ministers not doing this?

  2. tiredsingaporean 15 August 2009

    51) notalone on August 15th, 2009 12.31 am
    If i am not wrong, many democratic countries require their cabinet ministers, senators, mayors, people’s representatives to declare their assets upon taking up appointments, and do the likewise at the end of their terms.

    Why is it that Singapore MPs and Ministers not doing this?

    the ole man even passed a bill that its an offense to anyone trying to check on the MPs background, and that’s including himself too, what do you people think? your guess is as good as mine lo . . . .

  3. the best job in the world? president of singapore inc. $3m/year. no brain is required

  4. I am surprised there is only one discretionary component?

    I had thought there were at least 10.

    LHL is really prudent.

  5. Alan Wong 15 August 2009

    It was reported that Mahathir once said “There are so many ways to skin a tiger, we in Malaysia have often been accused of accepting money under the table, but they (in Singapore) do it openly above the table, is there any difference ?”.

    So if our Ministers are so clean and upright, then why do they need to pay themselves so much money as compared to other political leaders in other countries ? Are they any different from TT Durai who pay himself really “peanuts” as what Mrs Goh Chok Tong even had the guts to described.

  6. Give DR Chee a MP seat!

    I want someone like him in the house at least for 1 year which is more than enough for him to raise intellectually exciting and stimulating yet pertinent questions that goes straight to the point, where no man has gone before.

  7. “At the moment, how much each minister receives in terms of bonuses is kept secret.”

    Is it just me or is it …..

    1st there is mention of WYSIWYG, several times,
    then there is mention of the above quoted words.

    I am an self-regarded-intellectual. pls.

  8. Raja Goh 15 August 2009

    addinhg to #1…discretionery means you approved mine and I approved yours, lets enjoy the cakes among ourselves and be happy.

    The cake, is the hard earned harvest of the Citizens, it does not belong to the vampires

  9. Let Philip Yeo or his counterpart explain why this bond-breaker was not highlighted.

    I don’t mind GY’s high salary as long as he cares for the underclass in our soceity and donates much of his salary to charity.

    I also hope his other colleagues do contribute greatly to charity.

  10. I do not believe that people like PM or MM are receiving in terms of their emoluments, in the region of SGD2 to 4 million pa. I believe that the figure is very much higher.

    PM or MM – please tell us how much you are receiving.

  11. kennytokkork 15 August 2009

    what’s the diff between us and the dynasty of bygone era ?! What they make, they keep secret. What they loose, they also keep secret. Welcome to the empire stuffed with enuchs and concubines (ala HC, LHH).

  12. Yamamoto (#7) and Jonah (#9) – No, I’m not saying that their salaries are lower or higher than other countries’ ministers, nor am I saying that I agree with their salaries. I was commenting more on what actually goes into their remuneration, and which system I personally think is better. Basically, what I was saying was that I’d prefer the system of remuneration for minsters to be of the more transparent variant, where as much of their actual remuneration comes from their salary as possible, and as little as possible comes from other (often invisible) perks.

    Sgcynic (#40) – Very good point. And I’ve never been very clear – what exactly is it that Ministers without Portfolio or Ministers in the PMO do??

    But more than anything else, I agree with Gilbert. I think that more than anything else, people are begrudging them their salaries because too many people don’t think that they’re doing a good enough job. Having said that, though, what exactly DO their jobs entail? And who do we have to do a better job?

  13. notalone 15 August 2009

    52) tiredsingaporean on August 15th, 2009 3.29 am
    the ole man even passed a bill that its an offense to anyone trying to check on the MPs background, and that’s including himself too, what do you people think? your guess is as good as mine lo . . . .

    Is there really such a bill? That’s outrageous!

    Hope TOC will bring this up for discussion as well.

  14. If they pass a bill that is an offend to check on our MP. Then very easy, vote them out. Why do we have to stick with them as duo there is no other capable people.

    As for (38) Gilbert Goh, thank you for your work. Well done!

  15. lockeliberal 15 August 2009

    Dear Andrew

    The total budget for MFA for 2009 salaries for political appointees is about 3.2 million which pays for two ministers of states and one deputy minister. Since Ministers are paid for their primary porfolio and not their second and I believe MOS are paid above base PS but less than a full minister. His annual pay inclusive of bonus should be in the range 1.6 million or 1.5 million with the MOS costing about 800k each.

    The issue is whether knowing a range is enough or whether one should know to the dot how much a minister is paid annually inclusive of bonus and CPF/Pension contributions

    Locke

  16. “And who do we have to do a better job?”

    Just abolish GRC, and things will take of themselves

  17. tiredsingaporean 15 August 2009

    Just abolish GRC, and things will take of themselves

    Ya, right! you can long long or until majority of those MIW would have already packed their $$$ and left the country then.

  18. i am excited for coming election BECAUSE I KNEW NOW WHO I WANT TO VOTE! :)

    VICTORY TO DEMOCRACY!

  19. You guys here are all a bunch of ungrateful idiots.

    Do you know how much personal sacrifices our ministers have to make to take the current meager pay? Do you not understand that anyone of them can easily make millions in the private sectors, but selected to perform public service at a few meager millions annually? Just take the example of shamugan and vivien – they are the crème de la crème. In the private sector they are worth millions, but out of the concern and love of Singapore they selected to serve in the public sectors. And our own SM Lee could have easily built a business empire to rival Rockefeller, but instead decided to channel his drive and intellect to shape Singapore to what she is today.

    Do you know that Lim Swee Say is a brilliant mathematician? He has to conjure up messages of the lowest common denominator so that the masses like you can absorb what his keen intellect was trying to deliver. He was forced to adopt his cartoon image to lower down to your limited understanding.

    What more can you ask from Mr Mah Bow Tan? Without his shrewd manipulation of housing and transport, you will never be able to have persistent asset price appreciation and car-craze for so many years. I personally think that nobody is as shrewd a minister as Mr Mah in knowing which way to lean.

    You must understand that you are paying for a good franchise at a reasonable price, to quote warren buffet. Given the size of the economy, there should not be any problem to pay our current cabinet a few basis point more in management fees.

    Wake up to the fact that you have to pay up for value, okay?!

  20. Wake Up lah! 15 August 2009

    #15 Gilbert Goh

    “4. Foreign ministry – George should be a heavyweight minister by now but is still stucked at foreign ministry with his occasional diplomatic trips that did not help Singapore shine abroad. He could have being more outspoken when Suu Kyi was jailed again. Lacking presence and a large voice in the international arena, George is just a middle grade minister at best.
    Rating: 6/10. Reasonable salary range: $600,000 – $750,000. Bonus – two months.”

    “Heavyweight minister”/ministry?

    Do you know the importance of FTA to the Singapore economy?

    Do you know who NEGOTIATES with foreign countries for FTAs?

    Why do you think that the Head of Civil Service is the Permanent Secretary to the MFA, which is George Yeo’s ministry?

    Why do you think that PM Lee’s son, Li Hongyi’s scholarship is with the MFA?

  21. More than half the cabinet are over 55 years old. In addition to their pay, they
    are also getting pensions that is 2/3 of their last pay.
    People like the Prez, MM, SM, PM are infact taking more than $5mil each
    if my calculation is right. And we haven’t even talk about their bonuses.
    Where else on earth do politicians get paid so handsomely and many of
    ours do not even have to fight for elections.
    If politicians in the west or US demand to be paid like this, they would be
    booted in no time

  22. Kim San 15 August 2009

    The sad reality of the matter is that we can all debate and complain about how undeserving of their obscene salaries the PAP ministers are but nothing will change until more Singaporeans do something about it.

    Go join an opposition party and contribute time and if possible, money and do it with the goal of helping to unseat the PAP at the next elections

  23. Wake up call 15 August 2009

    To pap,

    Yes, yes, I agree. In fact I think this post is filled with a bunch of whiners. Why should we begrudge ministers the millions of dollars? After all if it weren’t for them, Singapore wouldn’t have been the first Asian country to fall into a recession this year.

    And also, if it weren’t for this creme-de-la-creme, top-notch talent, the elderly here would actually have to spend their sunset years in retirement.

    And if anyone should think that the losses MAS, Temasek and GIC are not justifiable while spending our reserves to help the poor is, then you are simply an ignorant moron.

    So good job PAP. Keep up the good work of fattening your own coffers while fooling Singaporeans.

  24. pap idiot 16 August 2009

    pap @69

    Classic signature sentence from PAP calling people “ungrateful idiots” if they do not praise and thank the men in white. Pay these guys millions to take away our rights and freedom, and soon our land and livelihood, and we are expected to be grateful!

  25. “Go join an opposition party and contribute time and if possible, money and do it with the goal of helping to unseat the PAP at the next elections”

    hahaha

  26. aiyoyo

    elites info/$alary confidential, commoners got data in cpf, why like that?

    thought 2-way street, but it seems only 1-way ticket.

    aiyoyo

  27. LKSML (u r what kind of peeper?) 16 August 2009

    Will they debate better or not AFTER the new day?

  28. the key thing in this issue here is simply:

    1. Is Bonus SALARY?
    2. Is ‘what you see is what you get’ a valid description with respect to the SECRET?

    I am only interested in how things are explained and described.
    Is there Absolutely nothing wrong in the description?
    If there is, there is. Admit it.
    If there is not, let it be, clarify beyond reasonable doubt.

    as simple as that.

  29. Charles Stewart Lee 16 August 2009

    @15) and 70)

    Why do you think that the Head of Civil Service is the Permanent Secretary to the MFA

    Yes, indeed. For a small country like Singapore reliant on trade, MFA is a very important Ministry.

    My grandfather was the first to hold these positions concurrently in Singapore and it was very evident from his overseas colleagues that MFA is very integral to Singapore’s well-being.

  30. Charles Stewart Lee 16 August 2009

    I think George Yeo is a good FM for Singapore but he has to convey the Party’s point of view.

  31. Derrick 16 August 2009

    It wld be good as a timely & daily reminder if the opposition parties
    come up with a car decal & sell at token price to concern Singaporeans
    to paste on the back and front screen of our cars, be creative and
    imaginative and the decal can highlight in various forms ‘humour’ or
    ‘deadpan serious’ or ‘comical’ pictures/wordings highlighting our
    Ministers & President salary etc etc. I’m quite sure many artistic students
    will come up with a very good design & thousands of Singaporeans will
    buy & paste them in our cars as we are patriotic but lack avenues to
    express our inner feelings.

  32. car decals avail from sim l sq

  33. kumki mochi 16 August 2009

    my fren said CPF is capped to a certain salary like a mere 4000 or 5000 or somewhere in between there or around there.

    So, he said, the more one earns above this limit, the less affected by the CPF scheme , if at all.

  34. Chan Chee Sing 17 August 2009

    The way pap #69 talked sounds more like an out patient from IMH, ot maybe he just wnat to create some excitement of debates ?

    If it is the latter, we expect him to reveal, is he one beneficiary of the current heartless policies ?

    In HK, Taipei, Shanghai, Private bus is allowed to compete with govt owned bus coys and to connect between MRT stations to estates and tourist spots, they are very populr among locals and tourists, for its efficiency and yet the govt bus coy did not los emoney ( maybe due to their execs not drawing S$1M or more a year )

    So what has Mah Bow Tan do in the situation ?
    Feeder bus is $0.80 per trip, LRT is more expensive, when a private bus can charge some $0.40 to $0.50 ?

    PAP’s mentality is ” I know Best, you folks is only followers”
    By the way, they don’t need our votes for they can rule out our right in electoral election by creating more GRC !

  35. bacteria 17 August 2009

    Mr Chan

    I believe Mr “pap” is trying his hand at “satire”.

    And to #45 X.X!!!

    GY Vs CSJ … was like Singapore Vs Liverpool.
    But Davinder Vs CSJ was like Barcelona Vs Man U. No contest

  36. Ng Pock 2 25 August 2009

    Thinking aloud… which former pap politician is able to become a CEO in private sector ?

    We can see that NTUC and GIC have become the safe haven for these pap loyalists, when they can’t get a private sector job after retiring from parliament.

    well, where George Yeo will go after his retirement is yet to happen but his principle of minister salary is really marsian language, we are unable to comprehend

  37. Charles Stewart Lee 27 September 2009

    There are good people trying to manage Singapore’s pathway too. I just hope that whatever actions and policies they take is for the good of the country and not at the expense of the spirit of the people.
    Even though I am overseas now, being born and spending my first 10 yrs in Singapore is something that has undeniably forged a fierce patriotism for Singapore.
    Singaporeans are VERY creative, inventive and durable. The source of Singapore’s future growth are ideas that can be nurtured and originated from Singaporeans. Government, please remember that the people are what gives a country its soul. Do what is in the best interests of the people, address their concerns, listen to their gripes, take criticisms constructively, provide them the dignity and respect they deserve and economic challenges will get addressed because of the resilience and character of the Singaporean people.
    Reverse the Brain Drain of Singaporeans leaving the country.
    I hope it is apparent to the Government that the fact the people ‘complain’ like we do is because this feedback indicates that the people really love the country.
    After all, people only air concerns so honestly and passionately because they really care about this Little Red Dot. By criticizing constructively, does this not show that people are very engaged and really care.
    Isn’t this a hallmark of Democracy?

  38. I read all the comments made on salaries for Ministers and come to a conclusion that those were rubbish….shit dirt!!! those who are not happy can just leave and go

    if those guys were to live in countries where every thing has to be done under the table or through back door dealing, where billion of dollars of public fund were siphoned off through abuse of power or position…where public funds were not used to improve life of people…..where ordinary people do not get access to clean water, reliable supply of electricity, comfortable public transport , safe living environment , clear law and rule, fair justice administration….only then they would come back to this heaven place called Singapore…..so why shout over a million or a few million dollars for each Minister who is doing a superb job compared to ministers of other countries…try to name a few???.

    if you think you are able and competent, go and apply and get selected, and work for a pay scale not higher than any bench marked country you named or are comfortable with….if you are able and competent and willing to sacrifice, please step forward.

    otherwise just keep your mouth shut or migrate !!!!

  39. No big deal lah.
    1 Billion?
    100 million?
    50+ million.
    That’s all.
    Carry on I say.
    This being a tiny, 700 sq km, resourceless island seated on the exclusive 1st World table delivering a European er capita income is no mean feat.
    Many more good years Singapore.
    More for value government.
    Just look around the region and the world and you will understand.
    Singapore has to PAY to drive Lexus or Mecerdes.
    Cheap things don’t come good; good things don’t come cheap.
    Ask for Ling How Dong and Cheo wat?

  40. It’s dirt cheap I tell you.
    What’s $58 million in today’s context for a crop of highly competent & dedicated leaders.
    The very fact that we are still around today and not already swallowed up by Malaysia or Indonesia tells a lot.
    Indonesia has no qualms about invading E Timor.
    Malaysia can as usual only launch verbal attacks over our not NEP complaince. Even Pedra Branca remains Pedra Branca and not some White Batu.
    Use your brans (if you have any) . . . . i.e. if you’re truely a blue blooded Singaporean.
    Look at the BIGGER picture unless you’re blind.

  41. are they that indispensable 24 February 2010

    “Solo Bear
    Aug 14, 2009 14:50
    As expected. You guys expect something different from the xxx?”
    Of course. Did not they market themselves as the best and quite indispensable.
    —- and your asset values will disappear, your apartment will be worth a fraction of what it is, your jobs will be in peril, your security will be at risk and our women will become maids in other people’s countries, foreign workers.” – Justifying million-dollar pay hike for Singapore ministers (Straits Times, 5 April 2007) ——
     
     

  42. how to know ? 24 February 2010

    Singa
    Feb 24, 2010 17:30
    “What’s $58 million in today’s context for a crop of highly competent & dedicated leaders.”
     
    Emperors and eunuchs will always look very competent & dedicated as long as there are others willing to use the stick on their behalf for a price.
    When the emperor speaks, do you dare to disagree.

  43. you said it boy !!! 24 February 2010

    “if you think you are able and competent, go and apply and get selected, and work for a pay scale not higher than any bench marked country you named or are comfortable with….if you are able and competent and willing to sacrifice, please step forward.”
     
     
    you talking about ministers huh.
    you said it boy, you think other countries will just allow you in like our hotel country.
     
     
    “otherwise just keep your mouth shut or migrate !!!!”
     
     
    you wait long long lah. make it so easy for you meh.  say migrate, then migrate meh. you think going to toilet huh.

  44. is it monopoly money ??? 24 February 2010

    “It’s dirt cheap I tell you.
    What’s $58 million in today’s context for a crop of highly competent & dedicated leaders.”
     
    Of course, cheap lah compared to billions lost lahhhh !!!!! You talked as though they are monopoly money, no wonder why you call it cheap. Yet when it comes to raise FW levy, it is only between $30/- to $250/- (till 2012 hoh).
     

  45. Do you know what.

    I spend less and keeps my money less in local banks or banks with any connections to Singapore although I am Singapore born and breed citizen. This will make the whoever in the govt work ever harder wrecking their brains out for more GDP growth, and their bonuses. I want Singapore’s financial woes to burst!

  46. Repost 2 March 2011

    Dear TOC,

    Please repost this article to remind voters in the upcoming election lest they forget.

    Thanks,