Singapore's Lee, Nathan to Get 25% Salary Increase 2007-04-09 04:47 (New York)
By Jean Chua
April 9 (Bloomberg) -- Singapore will increase the pay of Prime Minister Lee Hsien Loong and President S.R. Nathan by 25percent as the government revises the salaries of its officials,said Teo Chee Hean, minister-in-charge of the civil service.
Lee will be paid S$3.1 million ($2.1 million) annually, Teo said in Parliament today. The starting pay for new ministers,which includes bonuses, will rise to S$1.6 million from S$1.2million a year, said Teo, who's also the defense minister. The salaries put the island's ministers among the world's highest paid government officials. Singapore has said the better compensation has helped to draw talent from the private sectorand prevent corruption in the 41-year-old nation, with apopulation of 4.5 million. The salary increase also comes as the $134 billion economy enjoys its longest expansion in six years.
As long as the economic performance remains robust, peoplewon't begrudge their healthy compensation,'' said David Cohen, aneconomist at Action Economics in Singapore. Lee's salary is five times higher than the $400,000 U.S.President George W. Bush receives a year, based on Bloomberg data.
Still, it's a third of the overall pay for Wee Cho Yaw, chairman of United Overseas Bank Ltd., Singapore's second-biggest lender, who's the highest paid executive at a local bank. Lee will also receive a bonus tied to the performance of the economy, Teo said. Top civil servants may receive an additional bonus equivalent to seven months' pay based on their performance,he added. The monthly allowance for members of Parliament will increase to S$13,200 from S$11,900, he said. The salary revision will increase the government's wage bill by 4.7 percent, or S$214 million.
The amount budgeted for the salaries of top political appointment holders will increase by 23 percent to S$56 million.--With reporting by Michele Batchelor in Singapore. Editor:L.Chua (kkk).