Singapore to cut huge salaries of President and
Cabinet
Posted: 22 May 2011 1740 hr
SINGAPORE: The Prime Minister's Office (PMO) has
spelt out the terms of reference for the review of salaries for the
President and political appointment holders.
It issued a statement on Sunday, a day after Prime Minister Lee
Hsien Loong announced the formation of a committee to review
political salaries.
The PMO statement said the review will cover the President, Prime
Minister, political appointment holders and Members of Parliament
(MPs).
The committee's terms of reference will be to review the basis and
level of salaries "to help ensure honest and competent
government".
The committee should take into account salaries of comparable jobs
in the private sector and also other reference points such as the
general wage levels in Singapore.
The statement added: "The committee should also take into account
the following guidelines:
a. while the salary of the President should reflect the President's
high status as the head of state and his critical custodial role as
holder of the second key, it should also take into account the fact
that unlike the Prime Minister he does not have direct executive
responsibilities except as they relate to his custodial role;
b. the salary of ministers should have a significant discount to
comparable private-sector salaries to signify the value and ethos
of political service."
The government will base its new salaries on these
recommendations.
Prime Minister Lee has decided that the new salaries will take
effect from the day the new government took office, which is 21
May.
As for the President's salary, the statement said it will commence
from the new term of the President.
However President S R Nathan has informed Prime Minister Lee that
he, too, will adopt the new salary from 21 May.
Singapore ministers are among the highest paid in the world. Their
salaries are currently pegged to two-thirds of the median salary of
the top eight earners in six professions in the private
sector.
This meant ministers' pay could still rise despite economic
recessions, stoking public anger as the income gap between rich and
poor Singaporeans widened through the years.
Singapore has long justified the salaries as necessary to attract
talent and prevent corruption but they became one of the hottest
issues in the May 7 General Election.
At the swearing-in ceremony for the new Cabinet on Saturday, Prime
Minister Lee said that "politics is not a job or a career
promotion" but "a calling to serve the larger good of Singapore".
He noted that Singaporeans have genuine concerns over the present
ministerial salaries.
"Hence I am appointing a committee to review the basis and level of
political salaries. The committee will be chaired by Mr Gerard Ee,
Chairman of Changi General Hospital and Chairman of NKF," he
said.
"The inclination, obviously, once the PM says to reflect the ethos
and values of the political appointments, you can expect that in
all probability it (salary) would be a cut," said Mr Ee on
Sunday.
Together with Mr Ee, the committee will have eight members from the
private sector, labour movement and social sector. The seven other
members are:
Mr John De Payva, president of the National Trades Union
Congress;
Ms Fang Ai Lian, chairman of the Charity Council and chairman of
Methodist Girls' School Board of Management;
Mr Stephen Lee Ching Yen, president of Singapore National Employers
Federation;
Mr Po'ad Shaik Abu Bakar Mattar, a member of the Council of
Presidential Advisers and a member of the Public Service
Commission;
Mr George Quek, founder and chairman of Breadtalk Group Ltd,
vice-president of Teochew Poit Ip Huay Kuan, chairman of Xinmin
Secondary School Advisory Committee;
Mr Lucien Wong, managing partner of Allen & Gledhill LLP and
chairman of Maritime and Port Authority; and
Mr Wong Ngit Liong, chairman of the National University of
Singapore Board of Trustees and chairman & CEO of Venture
Corporation Limited.
- CNA