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Source:
www.gov.sg |
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SPEECH BY MR LEE HSIEN
LOONG,PRIME MINISTER, AT 2007 ADMINISTRATIVE SERVICE DINNER, 22
MARCH 2007, 8.00 PM AT MERITUS MANDARIN SINGAPORE |
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An Excerpt |
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COMPETITIVE SALARIES |
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For the Public Service to remain an
attractive employer, our terms must keep pace with the private sector. |
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That is why our policy is to pay
public servants competitive salaries, commensurate with private
sector earnings. |
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Salaries in the private sector have
been moving. Many good and well-paying jobs have been created,
especially in the last two years. |
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A recent world-wide survey conducted
by the employment agency Manpower Inc. showed that Singapore
employers are the most bullish among 27 countries about the
employment outlook. |
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Specific industries are doing very
well, such as finance, where there is strong growth in wealth
management and private banking. Other sectors are also on the
move, with increasing demand for lawyers and IT professionals. |
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The demand for Singaporeans is not
just coming from our own economy. Because of the Singapore brand
name, our people are being talent-hunted to work all over Asia. |
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Many CFOs in China are Singaporeans,
because of our reputation for competence and integrity. |
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We know from head-hunters that the
entire top managements of some of our agencies are being targeted.
The Middle Eastern countries are particularly interested. They
have studied Singapore¡¯s success story. They want to tap our
people to join them and replicate the miracle, and money is no
object. |
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Even foreign workers who have worked
in Singapore shipyards here are in demand in the Gulf. We even
received a feeler from one Middle Eastern country to buy the whole
of JTC! |
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All this will have an impact on the
Public Service. In terms of salaries, generally we have tried to
keep pace with the market, but the situation is uneven across the
services. |
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Some services have built-in market
adjustment mechanisms that have kept them in line. Others like the
Education Service have recently made adjustments. |
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However, some services have fallen
significantly behind the private sector. They may need not just
salary revisions, but also restructuring of their schemes of
services, such as the Management Executive Scheme for graduates. |
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The Administrative Service is one of
those that have fallen behind. Administrative Service salaries
were last adjusted in 2000 ¨C seven years ago. |
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There are two private sector salary
benchmarks for the Administrative Service. |
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One is set at SR9. This is the lowest
Superscale grade, at which officers in their early to mid 30s
enter the senior ranks of the Administrative Service. |
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This benchmark dipped from 2001 to
2004, but has since climbed again. It now stands at $361,000,
about the same as what it was in 2000 ($363,000). Actual SR9
salaries were cut more sharply than the benchmark between 2001 and
2004, and have since been restored. Current salaries are in line
with the benchmark. |
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The second benchmark for the
Administrative Service is set at Staff Grade I. The most senior
Permanent Secretaries can be appointed to the Staff Grades. |
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The benchmark is defined as two-thirds
of the median income of the eight top-earning professionals in
each of six professions ¨C bankers, lawyers, accountants, MNC
executives, local manufacturer executives and engineers. Present
Staff Grade I salaries are at the same level as the benchmark in
2000, when it was $1.21 million. But now the benchmark is $2.20
million. |
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These latest benchmark figures are
based on income tax returns in the Year of Assessment 2006, which
means incomes actually earned in 2005. In the two years since
then, private sector incomes have most probably risen further. |
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This is an urgent problem. We have
experienced on previous occasions the painful consequences of
responding too slowly when the private sector surged ahead. For
example in the early 1990s, the Administrative Service lost entire
cohorts of good officers. This showed up in the age profile of the
Service ¨C broad at the young and older age groups, but narrow at
the mid- to late-30s range. We took many years to recover from the
loss. This must not happen again. |
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The SR9 grade is crucial as it is a
key milestone which able AOs in their early 30s look towards.
Although we appear to be alright at this level, in fact I believe
we will soon come under pressure. |
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We know that the market for young
professionals is moving, particularly in the financial sector, and
this will eventually show up in the benchmark. We must keep the
SR9 salary market competitive to retain able officers at a
critical decision point in their careers. For Staff Grade I, the
present salary is at 55% of the benchmark, and we have to close
this gap. |
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This is why the Government is
currently reviewing Civil Service remuneration schemes. The review
will cover the Administrative Service as well as other services
that are lagging behind the private sector, because every service
is important, and each must be able to attract and retain good
people. |
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Besides Civil Service salaries, we are
also reviewing salaries for the political, judicial and statutory
appointment holders. |
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It is even more critical for us to
keep these salaries competitive, so as to be able to bring in a
continuing flow of able and successful people to be ministers and
judges. |
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Unless there is a first-class
political leadership and judiciary, the Civil Service, however
capable and dedicated, will not be able to function properly. |
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Minister Teo Chee Hean will announce
the salary changes in a Ministerial Statement in Parliament on 9th
April. |
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Full Text of Speech |
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Source:
www.gov.sg Media Release 22 Mar
2007 |
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FrontPage Edition: Fri 23 March 2007
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