But he will consider suggestions to refine and improve it incrementally

By Irene Ngoo
Apr 11, 2007
AsiaOne

The benchmark formula to determine how much to pay ministers and civil servants is sound, said Prime Minister Lee Hsien Loong. But he will consider refinements to improve it.

While it is fair to expect ministers not to earn as much as the top earners in the private sector, he said the gap must not be too far out of line from what a person of similar ability can earn outside.

"Otherwise, it becomes not workable," he said, responding to suggestions from MPs on improving the benchmark, which some of them have said is "too narrow and skewed" and should be subject to the same discipline and rigour of the private sector.

Some wanted to benchmark the ministers' pay against their previous professions, or be based on a range rather than a single point.

Mr Lee explained to the House that the benchmark for the ministerial new pay takes into account what a successful corporate executive or professional can earn, and a discount is then applied to work out a fair formula, which is pegged at two-thirds of the top 48 earners in six professions.

"When the private sector moves, we also adjust," he said.

On the many suggestions from MPs, he said: "We will consider refinements and improve incrementally. But the benchmark is basically sound."

PM Lee said that the salaries in the public service must stay abreast of the private sector's which are surging ahead. With Asia booming, many Singaporeans will be going after opportunities opening up all over the region.

"If Singapore does as well as we expect, the opportunities and rewards in the private sector will be tremendous. Not just in Singapore, but all over Asia and beyond," he said. "The situation is dynamic. We must say abreast of it."

He told the House that the public service will be following the benchmark in January 2008, January 2009 and beyond.

"If Asia continues to thrive, some of these adjustments will be large. But we must do them - not as a fresh decision, but as a consistent policy already decided upon," said the Prime Minister.

"This policy is for the future, against the backdrop of a new globalised Asia. It is intended to work for a new generation of Singaporeans."

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