FrontPage 22 Aug 2000 More (Part 3)

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^{Prime Minister's National Day Rally Speech}

Continued from More 2

Part Three of Three Parts

Good Government
145 Companies need people of the highest calibre at the helm. A good Chairman or CEO makes the difference between profitability and bankruptcy. His performance determines whether there will still be jobs for the staff tomorrow.
146 Why should it be any different when it comes to running the country? Why should we accept less than the best people to run Singapore? Why should the quality of the Cabinet be lower than the quality of a company,s board, and the Ministers be inferior to CEOs? In fact, I would say that nowhere is talent more critical than in the Cabinet. Ministers are not just concerned with economic growth, profitability and share prices. They are concerned with
security, racial and religious harmony, social cohesion and your development.
Their decisions and actions affect every aspect of your life. Surely this is
more complex and critical than running a company? When a major company goes bankrupt, a few thousand people lose their jobs. If Singapore goes under, 3.2 million Singaporeans will suffer immeasurably. That is why we must have the best people to run Singapore, not just honest, well-meaning people, but
committed, outstanding people.
147 Singaporeans do not disagree with this. But they assume that elections
will always throw up a good and competent team to run Singapore, and that the best men will volunteer to be paid less in order to do public service. They
cannot be more wrong.
148 There are many examples of democratic elections producing flawed leaders.
Let me give you just one example.
149 In 1989, Brazil held its first popular presidential election since 1960.
Fernando Collor de Mello, a young man of 40, ran for President. He campaigned against inefficient and corrupt public servants. With his energetic confidence and youthful style, he came from behind to win the election.
150 Three years later, he was forced to resign following allegations of
corruption within his government. Collor de Mello and his wife were reported
to have reaped enormous profits of as much as US$200 million from collaborators who had dispensed government favours.
151 Singapore too, has had some flawed characters standing for elections. If
not for the PAP, they might be running your lives, or should I say, ruining
your lives.
152 It is my responsibility as Prime Minister to ensure that there will be a
good, honest and competent team of Ministers to take over from me and my older colleagues.
153 To make it easier to do so, Senior Minister encouraged me to work out a
formula for Ministers, salaries. Initially, I had some misgivings. I knew
that the public would be unhappy. They would resent Ministers being paid a
high salary, even though the objective was to ensure that we had a good
successor team.
154 I pondered over this issue for some time before proceeding with a
market-based formula for Ministers, pay. I felt it my duty to recruit good
people into the Cabinet. If I failed to do so because I did not dare to pay
them well, I would have failed Singapore. The virtuous cycle of good
government and strong economic growth would be broken, probably forever.
155 After 10 years as Prime Minister, I am even more convinced that our method of recruiting good people for government and paying them properly is crucial for Singapore's long term survival.
156 Our starting point for the recruitment of Ministers is not pay. It is the
quality of people we want as Ministers. We want the best people for the job.
157 Let's say I am looking for a successor to Richard Hu. He is 73 now, but in
good health despite his recent hip operation. I would like him to contest
again to retain his experience. Nevertheless, I should plan for his
successor. Where do I find such a person? A logical place to start is among
the bankers and accountants.
158 Do I look for his successor among the top 8 bankers and the top 8
accountants, or do I just accept any mediocre banker or accountant willing to
serve? Who would serve your interests better? A Finance Minister from amongst the top 8 bankers and accountants, or a mediocre executive who is nowhere near the top of his profession?
159 Suppose we find a suitable man from among the best. How do we pay him? The top 8 bankers earned between $2.2 million and $4.5 million each in 1998. This excludes foreign bankers and owners of banks. The top 8 accountants earned between $2.0 million and $2.3 million. A Minister at Staff Grade I, however, is paid about $1 million, less than half what the 8th highest paid banker and accountant earned. Moreover, while the Minister pays taxes like the bankers and accountants, he does not have a corporate car and a chauffeur. He also pays his own medical bills and hospital fees.
160 Even with the salary revision, there is still a gap between what we pay our
Ministers and what most of them could command in the private sector.
161 Mr Chiam See Tong, however, believes that we should pay a Minister even
less. He reckoned that $50,000 a month would do. If we add two months, bonus, a Minister will be paid $700,000 a year. I am surprised that Mr Chiam is prepared to pay a Singapore Minister more than President Clinton!
162 Who would apply for the job of Finance Minister at $700,000 per year? The top 8 bankers and accountants are not likely to. In fact, any young man who can make it to the top of his profession is not likely to apply. Should we
then settle for people of lesser calibre?
163 I am not asking hypothetical questions. I am speaking from real, practical
experience. Several high fliers in the private sector I have approached
pleaded young family as a reason for not coming into politics, or a lack of
interest in being a Minister. They never say it is because they can earn more
outside, but I can tell clearly that pay is a consideration.
164 The same approach applies to the selection and appointment of the other
Ministers. We recognise, however, that not all jobs are equal and not all the
Ministers are the same in ability. This is why we put the Ministers on
different pay grades, and made a large part of their pay dependent on
performance. But every Minister's job is a man-sized job, and we need all of
them to form a strong, rounded team.
165 Appointing good people to government and paying them well is an ancient
Confucianist concept. I asked Ow Chin Hock to get me a few quotes from
Confucius, his disciples, and other ancient Chinese philosophers. He gave me
more than a dozen. I shall just use one.
166 Xun Zi, a philosopher who was born 300 years before Christ, said:
"It is impossible to have good people to come forward to serve without proper
rewards; it is impossible to deter bad people from committing crimes without
proper punishment."
167 Many Western leaders have told me in private that they envied our system of Ministers, pay. But they also said that if they tried to implement it in their
own countries, they would be booted out.
168 Some Singaporeans argue that giving a market-based wage would attract the wrong people into government, people who are motivated by the money and not by the desire to serve the country.
169 The short answer is this: if we pay ministers, poorly, and somebody steps
forward to serve, can you be sure that he is doing it out of a sense of public
service, and not because he intends to use the minister,s post to enrich
himself?
170 I cannot guarantee that if we pay Ministers properly, no one with the wrong
motives will slip through the net. But at least we will not put off good
people who may not be prepared to give up what they can earn in the private
sector. And even if someone with character defects slips through, he will be
weeded out once we discover his flaws. We will not tolerate people with
unsound values in our team. Nor should Singaporeans.
171 Let us get away from the idea that Ministers should be paid only a modest
wage because they should do public service. This conventional wisdom is
flawed. Such thinking will not permit us to put in place a self-sustaining
system which will produce good men and women to run the country. Instead,
think constructively about how we can perpetuate the virtuous cycle of good
government and good economic growth.
Social Cohesion
172 We need sound and imaginative policies to transform ourselves in this
challenging new world. But this alone will not guarantee success. Most
importantly, we must be able to pull together as a nation. The social glue
that has helped us through the tumultuous early years of nationhood and two
recessions will be even more critical for the future.
173 As a principle, we should not have measures that artificially raise the
earnings of the lower-income Singaporeans. This will reduce the incentive for
them to take the responsibility of improving their lot and that of their
children. It will also turn away successful Singaporeans who are penalised for
their achievements.
174 That said, we cannot succeed as a nation if we operate strictly on the
basis of every-man-for-himself. There would be no social cohesion if the
lower-income perceive that society is not willing to give them a helping hand
to improve their lives. Or they fall so far down that they cannot afford even
basic amenities.
175 We tread a fine balance between the two objectives. Our policies have
generally benefited both the able and the weak. The able have accumulated
considerable wealth through their ability and a favourable political, social
and business environment. We have, however, consciously helped the weaker ones to increase the value of their assets, and to raise their standard of living as the rest of the population prospers. This will ensure that they have adequate opportunities to climb up the social ladder, and improve their lives and that of their next generation.
Healthcare for the Elderly
176 One special group that needs help is the elderly.
177 Today, the elderly aged 65 years and above constitute only 7% of the
population. By 2030, they will nearly treble to 19% of the population. We
have to anticipate the increase in their needs.
178 We have already set up the Eldercare Fund. This is an endowment fund to
subsidise nursing home care for the elderly run by Voluntary Welfare
Organisations. The original target was for this endowment fund to reach $1
billion by 2010.
179 We will now extend the Eldercare Fund to provide subsidies for the entire
range of elderly and continuing care. In addition to nursing homes, it will
cover community hospitals, hospices, day rehabilitation, home medical and home nursing care. The capital sum will be increased from $1 billion to $2.5
billion. We will top up the fund whenever we have budget surpluses, to reach
$2.5 billion by 2010. This year, we will inject $300 million into the
Eldercare Fund, bringing it to a total of $500 million. I hope most of us
remain healthy and do not have to use these services when we grow older. But
it is a comfort to know that help is available should we need it.
180 In addition, I want to encourage more Singaporeans to join Medishield. The Medishield insurance scheme will go a long way in helping Singaporeans,
especially the elderly, pay for medical expenses during major and prolonged
illnesses.
181 Currently, however, only half of elderly Singaporeans aged 61 and above are covered by MediShield or similar catastrophic insurance schemes. To encourage more to sign up, the Government has decided to pay the basic MediShield premiums for all Singaporeans aged 61 and above, for two years. You will have to apply. Those with medical conditions may need a medical report or undergo a medical examination. The Government will subsidise most of the cost of the medical examination and report. You will only have to make a small co-payment.
182 If you are accepted onto MediShield, then in effect you get two years of
coverage for free. If you are not accepted, the Government will top up your
Medisave account with the equivalent amount of the premium.
183 Those who are already on MediShield or similar catastrophic insurance
schemes will receive the same 2-year basic MediShield premium rebate.
184 If you are 70 and above, you will not be eligible to apply for MediShield.
For this group, we will top-up your Medisave account with the equivalent amount of MediShield premium.
185 The cost to Government will be $110 million.
186 This year, I have decided to pay for the Medishield premium for the elderly
Singaporeans rather than top up their Medisave account. This is because the
same amount of money invested in Medishield will go a longer way in providing
for their medical needs if they are hospitalised, than if given out as a
Medisave top-up.
Ex-Gratia Payment For Old Guard MPs And Pensioners
187 I am paying special attention to the elderly not just because they are
frail compared with younger Singaporeans. I also want to recognise their
contribution as the first generation of independent Singapore. They laid the
foundation for today's Singapore.
188 There is a special group within the first generation whom I want to
acknowledge especially. These are the retired MPs, office-holders and
pensioners. Without their hard work and sacrifice, we would not be enjoying
the present state of peace and plenty. We owe them a huge debt.
189 To show our gratitude, we should share some of our current fruits with
them. The Government paid an ex-gratia payment of $16.6 million to the first
generation of retired MPs, office-holders and pensioners in 1996. This year,
the Government will make a similar ex-gratia payment to the same group of
Singaporeans.
Helping the Lower Income Own Homes
190 Our public housing programme has given lower income households a share in the prosperity of the nation.
191 We will do more to assist the lower income households to own their first
subsidised HDB flats, and to help those who already own 2-room flats to upgrade to 3-room or bigger flats when they can afford to do so.
192 The HDB will introduce a Special Housing Assistance Programme, to bring
together the various home ownership schemes for the lower income households.
HDB will relax some of its terms and conditions to facilitate ownership of
flats amongst the lower income households. It will also refine the policies on
upgrading, so that 2-room flat owners can look forward to a faster and more
affordable move to a second and larger HDB flat. HDB will announce the details in due course.
CPF Top-Up
193 Lastly, Singaporeans have pulled together in a time of crisis. We have
overcome the challenges together and emerged relatively unscathed. All of us
contributed to this happy outcome.
194 In the Budget this year, Richard Hu announced a Special CPF Top-up of $250 per citizen. Since then, the economy has done even better than we expected. We are therefore in a good position to do another but larger CPF Top-up, to redistribute some of the wealth back to Singaporeans.
195 However, this time, instead of giving every adult Singaporean the same
amount, we will give the lower income group more. It is one way of building
social cohesion and helping the less well off.
196 The CPF Top-up will be given to all adult Singaporeans who have contributed $100 or more to their CPF accounts between 1 January 1998 and 31 December this year. Those who have not added at least $100 to their CPF accounts in these 3 years can still make voluntary contributions before 31 December so as to qualify for the CPF Top-up.
197 The Top-up for those earning more than $2000 per month will be $500. For those earning between $1,200 and $2,000 per month, it will be $1,000. And for those earning less than $1,200 per month, it will be $1,500.
198 NSmen will get extra. NSmen make a vital contribution to the security and
well-being of all Singaporeans. Active NSmen will be given $200 extra, while
inactive NSmen will receive $100 extra.
199 For the self-employed and those without regular employment, and whose
income levels cannot be easily assessed from CPF records, we will use their
housing type as a proxy. Those who live in 1 to 3 room HDB flats will get
$1,500. Those who live in 4 room HDB flats will get $1,000. The rest will get
$500. I know there are some self-employed hawkers who live in 3 room HDB flats and drive Mercedes cars, but they are lucky this time.
200 The CPF Top-up will be given out in 2 equal instalments. The first
instalment will be in January. The second instalment will follow within 12
months. The total Top-up will come to $2 billion.
Everyone Must Play a Part
201 Building social cohesion, however, is not the task of the Government
alone. Everyone must play his part. As individuals, we must be able to see
beyond personal wants and wishes, and support policies for the overall good of
the country.
202 Also, those Singaporeans who have made it big must make a special effort to help lift the lives of less privileged Singaporeans. This compassion goes
hand-in-hand with our philosophy of "from each his best, to each his worth".
Remember that the opportunities you have had to do well came from a cohesive society that nurtured you. You need to give back something. Together, rich and poor, we are building a nation that has allowed many Singaporeans to prosper.
203 Let us show that we are a caring nation. And that there is a Singapore
Heartbeat.
Conclusion
204 This year's National Day Parade was my 24th as a Member of Parliament. I could feel the Singapore Heartbeat.
205 City Hall, the backdrop of the Parade, had not changed. It's been spruced
up, but it's the same stately building which has seen many defining moments in Singapore's history. I felt the same sense of pride and belonging as when I
first sang the national anthem and watched the parade as a young MP.
206 The skyline from where I sat, however, is nothing like what it was 24 years
ago. Tall buildings have sprung up where there were none before. The military
column which trundled past City Hall inspired quiet confidence that
Singaporeans will stand up for their country.
207 But as I looked around at the Singaporeans who were there to celebrate
National Day, I could not help but feel some nagging anxieties about our
future. Twenty or thirty years down the road, would we still be celebrating 9
August with the same joy? We have made great strides in building a nation
where there was none before. But our achievements can easily be undone if we
take a wrong turn.
208 I say this because in some ways, social cohesion is going to be a lot
harder to achieve this decade than it was in the early days of our
independence. Back then, the threats to our survival were immediate, grave and obvious. We were poor, had no natural resources, and only 600 square kilometres of land. We were vulnerable. Singaporeans instinctively understood that unless they stood together, there would be no country for them tomorrow. They rallied behind the Government and its policies, even when these were painful.
209 Today, however, there is food on the table, a roof over our heads, cars on
the road and jobs for everyone. No issues threaten our immediate survival. Our
worries are longer-term in nature. They concern ways to strengthen our social
cohesion, and to build institutions that will perpetuate our prosperity. In
such circumstances, it is more difficult to rally Singaporeans behind the
Government's policies. The policies are important, but their impact will be
felt by the next generation, not this one. The long-term seems too far away
for most Singaporeans to worry about.
210 Take for example the issues of madrasahs and the pay revision for civil
servants and Ministers. These are policies with little immediate impact.
Whichever way the decision goes, you will not feel the difference. My team of
Ministers is not going to pack up and quit if they do not get the pay
revision. The Malay community will not feel the impact overnight because
their children are not learning enough English, Mathematics and Science in the
madrasahs.
211 But decades later, if things have gone wrong with the country, when our
children analyse the causes, they will point an accusing finger at our
generation for lack of political courage and vision.
212 So do not be blind to the long-term requirements of the country. Singapore may be better off today, but our basic vulnerabilities remain. The policies that my Government is now pursuing are to build institutions and perpetuate virtuous cycles. They are to secure our stability and prosperity, so that our children will have a future in Singapore.
213 Cheong Yip Seng, an Editor-in-Chief of Singapore Press Holdings, felt the
same as I did when he watched the National Day Parade. He told me he could
sense that Singaporeans were bonding. But he said the bonding was slow. He said that we needed a major crisis to really bond as a people and nation.
214 I replied that our job as a government was to prevent such a crisis, and if
one threatened us, to deal with it as quickly as possible, like we did with the
regional financial crisis. So I am afraid that if we succeed in what we do, we
must accept that bonding between people and government, bonding between the different races, and bonding between Singaporeans and their country, will take place only bit by bit.
215 But there is reason for optimism.
216 I was interviewed last month by America's Public Broadcasting Service. The interviewer, Mr Dennis Wholey, was doing a documentary on Singapore. He interviewed a cross-section of people ) Ministers, Opposition MPs, journalists, academics, taxi drivers and ordinary Singaporeans. He was very impressed by Singapore, and the great deal of trust in the government. A taxi driver told him, "We trust the Government."
217 It is this trust that makes Singapore an exceptional country. This
Government will never betray the trust of the people. We have been honest with our people. We are committed to looking after you. We are working hard to improve your lives.
218 Singapore's success springs from this trust in the Government, and from our ability to forge a national consensus on issues. We have always set clear
goals. We have always given Singaporeans a strong sense of national purpose.
Let's now strike out to build an even better and more vibrant Singapore.

End of Speech

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