Ministerial pay to rise by up to 9% in Singapore in first adjustment since 2011

Under the framework, ministerial salaries are benchmarked to the median income of the top 1,000 earners who are Singapore citizens, with a 40 per cent discount to reflect the ethos of political service.

The top 1,000 earners include people in senior management positions such as chief executives, chief operating officers and chief financial officers; people working in the financial services such as bankers, traders and asset managers; and professionals such as lawyers, doctors and accountants.

The median top 1,000 Singaporean earner now takes home slightly over $3 million a year, noted Coordinating Minister for Public Services Chan Chun Sing. The 40 per cent discount brings the updated MR4 reference annual salary to $1.8 million.

PM Wong said that the Government’s starting point is that good government depends on good leadership, and that institutions are only as effective as the people who lead them.

“Systems and processes matter. But they do not run themselves,” he said. “Especially at the top, the quality of leadership makes a decisive difference.”

Companies understand this very well, which is why boards spend so much time on succession planning, he noted.

PM Wong said he learnt this for himself when he was chief executive of the Energy Market Authority (EMA), and the authority was tasked with building the city-state’s liquefied natural gas (LNG) terminal. As no one in EMA had the experience to do this, he had to search widely. A candidate was eventually found, PM Wong said, but he had to offer a competitive package – far more than what he was earning as head of EMA – to bring him onboard.

“He proved his worth. He built up the LNG team from scratch, and delivered the LNG terminal safely – on time and within budget,” said PM Wong.

He noted that there are some who say ministers are different, given that the city-state already has a first-rate civil service.

But a strong civil service is no substitute for effective political leadership, said PM Wong. This is as ministers have to set the direction for their ministries, decide the priorities and make the strategic calls. “If those calls are wrong, even the best civil servants will struggle to deliver good outcomes,” he said. “They may execute well – but they will be executing in the wrong direction.”

There are also decisions that civil servants cannot and should not make, he added. These include how the costs of stronger social safety nets are shared among individuals, the community and the Government, as well as how much to tax today and how much to leave for future generations.

“These are not just technical questions. They involve choices about priorities, interests and values,” he said.

Citing the reset of family policies that he announced at the National Day Rally, PM Wong said that civil servants could review each scheme and propose improvements.

But it was political office-holders in the Marriage and Parenthood Reset Workgroup who looked at the parenthood journey as a whole and helped shape the overall package, which included decisions on where support would make the greatest difference and how the costs could be shared.

Hence, a minister needs to have the character and commitment to serve, but also competence – the judgment, ability and leadership to do the job well, said PM Wong.

“This is where remuneration becomes relevant,” he said. “It does not determine who is capable, but it does affect whether enough capable people are prepared to step forward and take on the responsibility.”

While the challenge of assembling the best possible team to lead the country is not one that is unique to the city-state, PM Wong said Singapore has been an exception in putting together strong and stable governments.

“We have sustained these standards for so long that they can start to feel normal to Singaporeans,” he said. “But they are not normal elsewhere – and they are certainly not guaranteed here either.”

This record of good government has been achieved through deliberate choices made over decades about how Singapore’s political system should work, and one of these choices was to deal with political remuneration openly.

“We recognise that highly able people have alternatives outside politics. So, we pay political office-holders salaries that are competitive, but with a substantial discount to reflect political service,” he said.

In return, Singaporeans rightly expect much from their political leaders, including high standards of integrity, competence, and ultimately accountability to voters at the ballot box. That same broad consideration applies to MPs, who carry substantial responsibilities in Parliament and in their constituencies, he added.

PM Wong said good leadership will be even more crucial as Singapore navigates a more uncertain and troubled world. “So, let us make the right decision – to keep the path open for capable and public-spirited Singaporeans to step forward, lead and serve,” he said.

Chan said in his ministerial statement that the Government also agreed to the regular and independent review of the salary framework every five years. Between reviews, and where justified, it may also make pay adjustments within the framework. This will be exercised with responsibility and restraint, he added.

Parliament will debate the Government’s response to the salary review on Sept 10. This will allow MPs some time to consider the two ministerial statements on the matter, said Chan.

“We look forward to the debate and will address any clarifications fully then,” he said.

Senior Minister Lee Hsien Loong said he strongly supported PM Wong’s decision to accept the salary review committee’s recommendations and to adjust political salaries. He called it a strategic move to enable the Republic to continue fielding the strongest possible leadership team.

“The cost to the country of mediocre leadership would be vastly greater than the cost of paying political leaders properly,” Lee wrote on Facebook. “This salary revision will help keep our country in good hands for years to come. I ask all Singaporeans to support it.”