The Singapore Government – Worth its weight in gold?
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February 3, 2010 - Temasek Review
By Wakka Kong and Simeon Ang
The Singapore Government – Worth its weight in gold?
EDITOR”S NOTE:
This article was emailed to us for publication yesterday. Unfortunately, the writers did not inform us that they have emailed it to another site for publication as well. We advise all our guest columnists to email their articles to only one site for publication in th future.
According to Minister Mentor Mr Lee Kuan Yew, the high salary remunerated to Singaporean ministers helps ensure a clean and honest government as well as to attract and retain local talents. Pegged to a percentage of some of the top earners in our country as well as economic growth, our ministers’ salaries top the world, with our Prime Minister Mr Lee Hsien Loong being the highest paid head of government, more than 5 times the remuneration of Mr Barack Obama, President of the United States of America.
We have compiled a table of various data to compare between our leader and other countries’ to answer the mind boggling question of “whether the Singaporean government is worth its weight in gold?”
Denmark
PM - Lars Lokke Rasmussen Salary (US$): $210,036 Corruption Ranking (a) : 2
Democracy Ranking (b): 1 Quality of Life Ranking (c): 16
GDP per capita (Int. $): 36,725
New Zealand
P M - John Key Salary (US$): $253,746 Corruption Ranking (a) : 1
Democracy Ranking (b): 3 Quality of Life Ranking (c): 5
GDP per capita (Int. $): 26,625
USA
President - Barack Obama Salary (US$): $400,000 Corruption Ranking (a) : 16
Democracy Ranking (b): 15 Quality of Life Ranking (c): 7
GDP per capita (Int. $): 46,443
Sweden
PM - Fredrik Reinfeldt Salary (US$): $236,000 Corruption Ranking (a): 3
Democracy Ranking (b): 2 Quality of Life Ranking (c): 30
GDP per capita (Int. $): 35,934
SINGAPORE
PM – Lee Hsien Loong Salary (US$): $2,856,930 Corruption Ranking (a): 4
Democracy Ranking (b): 71 Quality of Life Ranking (c): 70
GDP per capita (Int. $): 49,433
* Salaries are from various sources.
* (a&b) Corruption & democracy ranking – http://www.worldaudit.org/corruption.htm
* (c) Quality of life ranking – http://www1.internationalliving.com/qofl2010/
* GDP per capita from International Monetary Fund – http://imf.org/At first glance, our PM is drawing up to 12 times more than the other first world countries’ PM salary. What is even more surprising is that the anti-corruption rankings of these said countries are better than Singapore. We can see plainly that while Singapore has done relatively well in one area, the country is obviously lagging in other terms. In addition, their rankings in both democracy and quality of life are significantly better than Singapore – one can therefore safely conclude at this juncture, that an effective and efficient government does not require astronomical salaries to counter corruption and/or attract and retain talents who can be sound policy makers.
There is a need however to realize that it takes superior logic and foresight, such as those displayed by our Minister Mentor Mr Lee Kuan Yew in the pre and post independence era of the 60s to 70s – minus Operation Coldstore (which is an outrage in my humble opinion). There is sufficient evidence to claim that the initial management of local housing and education by the first Lee administration provided an impetus for the growth of our country. This allowed the country to be propelled from third world status to that of the first world. However, there seems to be a downturn of sorts in the character and “spur” of the government at this moment. A very recent incident involving the Minister of National Development, Mr Mah Bow Tan who tried to address concern about the housing needs of local Singaporeans by admitting that he was “caught off guard”. It would seem that the million dollar salary he is earning has not compensated him enough to be prudent for the needs of local Singaporeans. If such a said gaffe was isolated and sporadic, it would certainly pass the attention of the citizenry. However, as we all know, our million dollar paid ministers have recently been prone to many a faux pas.
A small little bright spot might be evident in the table we have shared above. This comes in the form of the high GDP per capita data. However, if we were to dissect the data provided we can attribute the high GDP per capita to a few reasons.
One of the main reasons for the high GDP per capita in recent years may be attributed to our lax immigration policy as some analysts suggests. The influx of cheaper immigrant workforce artificially inflated the GDP. However, this in turn strained Singapore’s infrastructure, pushed housing prices through the roof, lowered overall productivity, depressed local’s wages, contributing to the widening of the income gap which is one of the highest, if not the highest among developed countries. Ultimately, the people who reap the most from it are the rich. What many Singaporeans do not realize is that this translates to higher ministers’ salary as their remuneration is pegged to a percentage of the average income of the top 4 earners of 6 different sectors in the country.
Singapore’s ranking on the quality of life study further reinforces the views of many Singaporeans that life in Singapore is far from being a bed of roses, this, as compared to other first world countries. Furthermore, a 2009 study showed that average Singaporeans work much longer hours per year as compared to most other first world country citizens living in their capital. The table below collates some of the average work hours of the above mentioned countries.
New Zealand Avg Work Hrs/Year: 1884 Avg Holidays/Yr: 21
- Auckland Domestic Purchasing Power (annual net): 68.9
USA Avg Work Hrs/Year: 1955 Avg Holidays/Yr: 12
- New York Domestic Purchasing Power (annual net): 100
Singapore Avg Work Hrs/Year: 2088 Avg Holidays/Yr: 11
Domestic Purchasing Power (annual net): 39.9
Denmark Avg Work Hrs/Year: 1658 Avg Holidays/Yr: 24
- Copenhagen Domestic Purchasing Power (annual net): 73.1
Sweden Avg Work Hrs/Year: 1777 Avg Holidays/Yr: 25
- Stockholm Domestic Purchasing Power (annual net): 73.5
* Figures from “Prices and Earnings”, UBS
The huge disparity in Work hours and domestic purchasing power speaks volumes about the man on Main Street. As opposed to what the government would have its citizens think, Singaporeans are a hardworking bunch. The average work hour of a Singaporean far exceeds that of the other countries in our analysis. And yet what do Singaporeans have at the end of the day? Well, Singaporeans take home the lowest domestic purchasing power of all 5 countries. To add further insult to injury, the government has even called on Singaporeans to be “cheaper, faster and better”. Contrast this phenomenon with that of ministerial salary, we can see the evidence for the brand of a local drink, Heaven and Earth.
For some time now, the Americans have been criticizing about the excesses of Wall Street and the resulting use of Main Street to shore up the country’s economy. Putting this in context with the Singaporean society, it is time for the excesses of the government to be checked with the man on Main Street. It is time the government of Singapore realizes that they are only in power on the premise that they govern for the people and not for themselves. As George H. W Bush himself was quoted as saying, “A government that remembers that the people are its master is a good and needed thing.”
http://www.temasekreview.com/2010/02/03/the-singapore-government-%e2%80%93-worth-its-weight-in-gold/
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Singapore citizens are so shortchanged. Pay and pay and the quality of life in Singapore is such.
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At least no under table money and corruption from the govt.
Foreign investors know this, they will come to spore to invest and set up companies. Thus, sporean will have jobs too.
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Originally posted by likeyou:
At least no under table money and corruption from the govt.
Foreign investors know this, they will come to spore to invest and set up companies. Thus, sporean will have jobs too.
Flip flip flip.How sure are you , can you guarantee there is really no undertable money???
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Originally posted by Fantagf:
Flip flip flip.How sure are you , can you guarantee there is really no undertable money???
At least better than other countries...gtg...will log in 12am to 8am....see ya.
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Originally posted by likeyou:
At least better than other countries...gtg...will log in 12am to 8am....see ya.
What do you mean at least better than other countries?YOu are obviously not comparing apple to apple. The sg govt pay themselves world class salary, so they have to give the people world class service. For this matter, be fair to the third world countries or countries that govt do not pay themselves world class salary, so don't compare Sg with them. Much is taken, much is expected. Understand???
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At least better than other countries.
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Originally posted by likeyou:
At least better than other countries.
OMG, you still don't get it. hahahahha!Ok, if you buy branded wallet at $200 and someone buys wallent for just $20. So would you expect your branded wallet to have top quality compare with the $20 wallet?
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Flip flip flip flip...tio bo?
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Originally posted by likeyou:
Flip flip flip flip...tio bo?
H B R
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Hey you arh! What is hbr?Ok lah, got to go, take care FANT.
Tonight lets argue again (12am).
Really need to go.
What is hbr....
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Originally posted by likeyou:Hey you arh! What is hbr?
Ok lah, got to go, take care FANT.
Tonight lets argue again (12am).
Really need to go.
What is hbr....
Well, it is for me to know and you to go search. I will not supply answer. Did you pass your English? -
Originally posted by Fantagf:
Well, it is for me to know and you to go search. I will not supply answer. Did you pass your English?
Doesnt matter if you dont want to say.