Why Singapore lawyers are paid much less

dracky SG

March 18, 2006
Why Singapore lawyers are paid much less

IN THE letter, 'No chance to woo US lawyers' (ST, March 11), Mr Kenneth Wee Beng Quee noted that salaries of lawyers in the United States, Britain and Hong Kong are much higher than in Singapore. Mr Wee asked whether there is something about the Singapore legal industry that makes it difficult to persist in the lawyering profession.

Having worked in Singapore and US law firms, I agree that Singapore salaries are much lower than those offered by large US firms. However, a number of points must be made. First, starting salaries for lawyers joining big US law firms have increased 600 per cent during the last 20 years, far outstripping the inflation rate.

Second, US lawyers require graduate degrees and most leave school with almost US$100,000 (S$163,000) in student loans. Third, large US law firms view paying high first-year salaries as a loss-making investment for the future. Fourth, US law-firm associates are expected to bill a lot of hours a year - 1,500 to 2,000 or 7.5 to 10 hours per day. Fifth, US law firms typically start billing at US$300 per hour for first-year associates. Last, some of the largest American firms have been wound up due to financial difficulties arising out of spiralling costs.

For these reasons, it would be unwise for Singapore law firms to pay high starting salaries for the sake of matching foreign firms when it is not financially viable to do so. In addition, higher costs would lead to Singapore firms raising billing rates which currently begin at around S$150 per hour. This would restrict access to justice for the man in the street.

While it is to our credit that Singapore lawyers do get hired by US firms as they are just as good, these are the cream of the crop. Singapore firms will continue to lose talent to US firms offering fat salaries and the legal profession has to grapple with this fight for talent.

However, as Mr Wee alluded to, partner-level lawyers in Singapore are paid competitively and US-bound lawyers would realise that the road to partnership in a US law firm is a longer and much harder one.

Singapore lawyers know that their starting salaries are superior to those of their peers in other professions, including medicine. They also know that billing pressure is not as severe as in US firms.

Bryan Tan Suan Tiu

The writer does not need to go into a long explanation. Singapore lawyers are not the only person that are paid below the developed world average. Singapore managers, engineers, waiters, bus drivers and just about everyone are paid below the developed world average. The few jobs in Singapore that pays way above the developed world average are our Ministers.