Government’s approach is to raise political salaries ‘progressively and with restraint’: PM Wong

He said that this approach, which the WP had proposed in 2012, would lead to more modest increases in ministers’ salaries over time.

PM Wong countered that despite the different formulas, the outcome was a similar salary figure for ministers in this term of government, given the Government’s gradual and restrained approach in implementing the updated salary benchmark.

He noted that an inflation adjustment approach, as used for MPs’ allowances, would have brought the average minister’s salary to $1.5 million. The Government’s decision was, in fact, to take longer to catch up to the benchmark.

“For all intent and purposes, within this term of government, we agree on the implementation approach,” he said. “Beyond that, we will have to consider the circumstances then. And five years from now, there will be another independent review.”

Noting that Singh had said money was not the key to recruiting MPs for the WP, PM Wong made clear that the PAP government does not believe in using higher pay as an incentive to draw people into politics.

“Competitive salaries do not create the motivation to serve. But they can make it possible for someone who already has that motivation in the first place to step forward,” he said.

He noted that if every office-holder received the full one-time adjustment of 9 per cent, the additional public expenditure would be $5 million. The actual amount will be lower as the adjustment will be differentiated.

Currently, the salaries for all political office-holders cost around $55 million. This figure varies from year to year depending on the number of office-holders appointed and promoted, and the national bonus paid out.

As a share of the gross domestic product (GDP), salary expenditure is lower today than it was 10 years ago, PM Wong said. “In recent years, the overall salary bill (as a share of GDP) has been stable. And I intend to keep it broadly at this level going forward.”

The debate saw a number of NMPs seek clarifications and propose tweaks to the salary framework.

Businessman Azhar Othman suggested having a larger variable component in the overall salary package so that it would be less a bonus but “a genuine reflection of the social contract between the governed and those who govern”.

While a minister’s salary currently has a 35 per cent variable that takes into account Singapore’s economic performance, national outcomes and individual performance, Azhar proposed that this component be increased to 55 per cent.

Academic Terence Ho suggested tweaks to encourage more private sector candidates to contest elections, such as a transitional arrangement for those taking especially large pay cuts.

Meanwhile, fellow academic Kenneth Poon asked for broader social progress to be considered in the proposed quality-of-life measure in the national bonus framework.

PM Wong said the MPs had raised many useful suggestions during the debate, and that the Government will study all of them carefully.

The Government does not claim that the present formula is perfect, which is why there will continue to be regular independent reviews in the coming years, he added.

“There may well be further ideas beyond this debate, as we reflect on the framework and gain more experience over time,” he said. “The Government remains open to suggestions.”

He further noted that some MPs had asked why political salaries should go up when other countries achieve good governance outcomes while paying their ministers less.

While this was a fair question, international comparisons of political salaries have to be treated with care. For instance, some countries distribute responsibilities across national, regional and local governments.

But Singapore, as a city-state, has a single national government that is responsible for economic, social, security and municipal issues.

Unlike in other countries, ministers in Singapore also cannot just preside over their ministries like a non-executive chairman, but have to set the tone and direction and make the big decisions, he added.

“In Singapore, we expect our ministers to be effective politicians, effective executives, and effective leaders. That’s how we have operated our system, and that is how we have achieved exceptional results,” he said.

“I am not saying that our model is better, or that others should follow us. Every country must develop arrangements that work in its own circumstances.”

The Prime Minister emphasised that the issue when it came to political pay was ultimately not about him or the present Cabinet, nor even the PAP government of today.

“We cannot know which party will form the Government many years from now. But whoever governs Singapore will face the same challenge – to persuade good people to step forward, and to assemble the strongest possible team for our country,” he said.

“So whatever our differences, all of us have an interest in ensuring that Singapore continues to be well governed.”