Top govt salaries far behind private sector's

TOP private-sector salaries have surged ahead of those in the public sector and Prime Minister Lee Hsien Loong revealed last night just how far the pay of ministers and civil service leaders has fallen behind.

A minister should be drawing $2.2 million a year or more, according to benchmarks approved by Parliament in 1994 to ensure competitive salaries for a competent and honest government.

But their actual salaries have fallen to 55 per cent of the benchmark, that is $1.2 million, and 'we have to close this gap', Mr Lee said last night.

He did not say if ministers' pay will be raised fully to this amount, or when it will go up. Details of the salary changes across the civil service will be announced in Parliament on April 9 by Defence Minister Teo Chee Hean, who oversees the public service.

Speaking at the annual Administrative Service dinner, Mr Lee explained that salaries had to be reviewed so the public sector can keep its share of talented Singaporeans.

'This is an urgent problem. We have experienced on previous occasions the painful consequences of responding too slowly when the private sector surged ahead,' he said.

In the 1990s, this led to the Administrative Service, the key service from which most public sector leaders are drawn, losing entire cohorts of young and good officers.

Administrative Officers (AOs) in their early 30s are at a 'critical decision point' in their careers, and the Government must keep their salaries market competitive to retain the able ones.

Today, their salaries are in line with the private-sector benchmark created for this group. But with salaries for young professionals moving up, especially in the financial sector, Mr Lee expects salaries in this group to 'soon come under pressure'.

Fast-growing salaries explain why the Government has embarked on a review of civil service salaries covering all services where pay has fallen behind the private sector.

Also important is to review the salaries of ministers, judges and statutory appointment holders such as the Attorney-General and Auditor-General, said Mr Lee.

'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.

'Unless there is a first-class political leadership and judiciary, the Civil Service, however capable and dedicated, will not be able to function properly,' he said.

Ministerial and top public sector salaries have been pegged to those of top private-sector earners since 1994, when Parliament debated and approved the use of benchmarks to ensure the public sector continued to attract its share of talent, and to provide for regular adjustments to keep pace with private-sector earnings.

There are two benchmarks or formulae spelling out how the salaries are to be pegged.

The first is the MR4 benchmark for ministers and senior permanent secretaries.

Yesterday, the Public Service Division released data on the median incomes of the top eight earners in the six professions to which MR4 salaries are pegged. Lawyers earned the most, with a median income among the top eight of $4.29 million.

The second benchmark is the SR9 benchmark for top AOs in their early 30s.

Mr Lee mapped out how in the years since 1994, the 'scramble for talent' has become a global phenomenon.

Talented Singaporeans are now being head-hunted by top global companies as well as by other governments keen to replicate the Singapore success story.

Top students are turning down government scholarships as their families or universities were willing to fund their education.

At the same time, the demands on high-quality governance have gone up, as a result of globalisation and a more advanced economy, he said.

With Singapore now operating near the 'leading edge' in public policy, public-sector leaders cannot rely on the best practices of other countries, but have to break new ground and find fresh solutions.

First-class people are therefore needed to anticipate problems, come up with creative solutions and lead teams.

He said 'first-class governance' which can be provided only by a top-grade public sector was a 'sustainable advantage' that Singapore should 'zealously uphold'.

While public officers must serve from a sense of idealism and duty and not be motivated mainly by financial reward, they should not be expected to make 'unreasonable financial sacrifices' to be in public service, he added.

lydia@sph.com.sg

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For recurring payment to cease, customer must instruct merchant to cancel billing arrangement: Citibank

We refer to Mr Vince Chan Kok Keong's letter, 'Bank can't stop direct debit arrangement' (Online forum, Feb 28).

We have since contacted Mr Chan to address his concerns and thank him for his feedback.

We would also like to take this opportunity to clarify certain points highlighted by Mr Chan for the benefit of customers who may encounter a similar situation.

In his letter, Mr Chan stated that he called up Citibank to terminate a direct debit arrangement he had made with a merchant and was informed that 'although Citibank has the right to approve or reject a direct debit application before any charging could be activated by a merchant, there is nothing it can do to stop the automatic charging after that'.

In line with industry practice, customers can authorise a merchant to charge a recurring payment such as utilities bills or charity donations to their credit card account.

The bank, on receiving the charge from the merchant, will facilitate the deduction after verifying that the customer's account details are in order.

Similarly, for a recurring payment to cease, the customer must instruct the same merchant to cancel the billing arrangement.

Customers who suspect that they have been charged for transactions that they did not authorise should contact the bank immediately, so that an investigation can be conducted.

To protect our customers against fraudulent transactions, we will also arrange to block their card account and issue them with a new credit card.

Customers who require assistance can contact our 24-Hour CitiPhone Banking hotline at (65) 6225-5225.

Adam Rahman

Corporate Affairs Director

Citibank Singapore Ltd

New kids Regent are new kings

REGENT Secondary may be the new kids on the block, but they look like they have been around for ages.

Regent, who opened their doors to their first batch of students only in 2000, have just completed their fairytale run in the West Zone table tennis B Division boys' competition.

On Monday, they were crowned the West Zone champions - beating defending champions Hwa Chong Institution (HCI) 3-2 no less.

To get to the final, Regent overcame three of the top four teams: Unity Secondary (4-1, group stage), Nan Hua Secondary (3-2, group stage) and River Valley High (3-0 in the semis).

Said a delighted Soon Bing Han, the Regent captain: 'It was really a surprise win.

'We never thought that we could beat Hwa Chong as they're one of the giants in schools table tennis.'

Regent have never made it past the group stages in previous zonal competitions.

Following the upset victory, they will compete in the Schools National competition for the first time.

Only the top four schools from each zone will advance to the Nationals.

Said teacher-in-charge Teo Hock Siong: 'This is the result of very hard work from the players and coach, as well as strong support from the school.

'Table tennis was identified in 2005 as having the potential to be developed into Regent's niche sport. Winning the zonal final shows that we are on the right track.'

What transformed the losers into champions?

Bing Han attributed their success to extra training, strong camaraderie and coach Li Zhoumin's valuable experience.

Li was China's national champion in the 1970s.

He was Malaysia's national coach from 1988 to 1992 and again from 1999 to 2005.

He said: 'Basics are very important and that's where they were weakest in when I first saw them.

'Training is now tougher for them. They train at least three times a week as compared to twice previously.

'They are also more disciplined, and even train during holidays.'

The coach also took advantage of the HCI players' weaker backhands, a strategy that proved crucial.

Having three China-born players - Chu Tianshu, Li Tianyu and Lu Hanjie - also helped.

He started coaching at Regent last year when Teo approached him for help. He and the teacher-in-charge are good friends.

Teo said team spirit was also a key to Regent's success.

He said: 'The team go for hikes at Bukit Timah Hill and MacRitchie Reservoir. There is a good rapport among them.'

Post-victory celebrations have been postponed as Regent gears up for Nationals, which begins at the end of this month.

Their target?

A top-eight finish.

hpeishan@sph.com.sg

Security guards there to protect residents from intruders, not be the nanny to residents

I refer to the letter, 'No harm done if security guards were to inform maid's employer if she goes out during odd hours' (Online forum, March 6).

I cannot agree with the author of the letter in suggesting that security guards play informants when they notice any 'unusual movement of maids'. Security guards are there to protect the residents from intruders - they are not there to be the nanny to residents.

In this case, it is the maid who has made 'unusual movements'. Where then do we draw the line? What if an 18-year-old is seen coming home at 4am on a Sunday morning after being out with friends? Should security personnel inform his/her parents as well?

At the end of the day, we must all be responsible for ourselves. In order to grow into a First World country, we need to stop being a nanny state and start taking responsibility for our own actions.

You can be sure that after this fall, even if the employers do not make it more difficult for her to leave the premises in the wee hours of the morning, she would have learnt that being locked out is not worth it.

Alvin Sim Khim Woon

London, United Kingdom

No need for tax returns for some employees, retirees

A GROUP of 45,000 people - many retirees - will find things a lot less taxing this year when it comes to dealing with the Inland Revenue Authority of Singapore (Iras).

Most won't even have to file a return at all while the rest will have to do so only if key financial details have changed in the past two years.

The people in the group have been singled out as part of a pilot scheme aimed at further streamlining the tax filing process.

The first segment comprises about 35,000 taxpayers receiving under $20,000 of dividends with no other source of income. About 75 per cent are over 50, according to Iras.

These people do not have to pay tax and usually get a refund as tax is deducted at source on dividends. But this year, they will not have to file a return in order to trigger that refund cheque.

Since Iras automatically gets details of all dividend income from the Central Depository, it will calculate the refund without needing the return. The cheques should be sent out by the end of July.

Life is going to get a bit easier for the other 10,000 people in the pilot group as well.

These have a straightforward tax position if they have met two criteria: salary data is already sent by their employers to the taxman and the reliefs they claim - for an aged parent, for example - have not changed for two years.

Again, Iras will calculate their tax without needing a return and send them a notice of assessment by June.

These taxpayers should log onto the Iras website to ensure the relevant information has been correctly pre-filed on their form. If their circumstances have changed - such as having another child - they will have to e-file by April 18.

The 45,000 taxpayers in the pilot run form about 3 per cent of Singapore's total taxpayer base of 1.4 million or so but Iras may extend the initiative after getting feedback.

In a bid to make e-filing even less onerous, Iras officers are fanning out to the heartlands to help taxpayers with online filing. Look for them at the Chong Pang, Bedok and Yew Tee community clubs where they will be at till April 18.

Hawkers at Tampines Street 11, the first food centre here with a wireless Internet connection, are also being encouraged to give e-filing a go.

Iras officers will train staff of the hawkers' association to help members with e-filing.

Iras said that all taxpayers should have received forms or letters and they can start e-filing. The deadline is April 18. Those submitting hard copy returns must post them by midnight on April 15.

sushyan@sph.com.sg



MAKING A START

The 45,000 taxpayers in the pilot run form about 3 per cent of Singapore's total taxpayer base of 1.4 million or so but Iras may extend the initiative after getting feedback.

TV times

CRICKET: ICC World Cup, warm-up match: India v Netherlands (Live, PPV Ch110, 10.30pm).

SOCCER: Uefa Champions League 1st rd knock-out, 2nd leg: Liverpool v Barcelona (Live, Ch23, tomorrow, 3am), Chelsea v Porto (Live, Ch24, tomorrow, 3.30am), Valencia v Inter Milan (Live, TV3, tomorrow, 3am. Delayed, Ch23, tomorrow, 6am).

Event

SOCCER: AFC Cup, preliminary rd: SAFFC v Mahindra United (Ind) (Choa Chu Kang Stadium, 7.30pm)

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South Korea delays full resumption of aid to North

SEOUL - SEOUL yesterday delayed a full resumption of aid shipments to Pyongyang until it shuts down its main atomic reactor under a nuclear disarmament pact reached last month.

The two sides have agreed at high-level talks to hold an economic cooperation meeting, aimed at addressing the aid issue, in late April - after the 60-day deadline for the North to close its reactor under the Feb 13 agreement, according to a joint statement.

The deal marked a rare victory for the South in fending off the North's demand that the economic talks be held this month. The dispute was the key sticking point at this week's negotiations, delaying the closing session by nearly five hours.

North Korea also reiterated its commitment to last month's nuclear deal. The two Koreas 'agreed to make joint efforts for a smooth implementation' of the nuclear agreement.

The South's chief negotiator, Unification Minister Lee Jae Joung, said he set the date for the economic meeting in the hope that 'everything will go smoothly', apparently referring to the nuclear pact.

Still, Mr Lee said Seoul is willing in principle to resume rice and fertiliser shipments to the North and indicated that Seoul may provide fertiliser before the North fulfils its nuclear obligations.

'Spring is early this year. I think the timing may be moved up,' Mr Lee told reporters, saying fertiliser should be provided in time so the North can use it during planting season.

The meeting in Pyongyang between the two Koreas was the first such Cabinet-level dialogue in seven months, fostered by the North's agreement last month with the US and four other countries to take initial steps towards abandoning its nuclear weapons programme.

South Korea has been one of the North's main aid sources since the two nations held their first and only leaders summit in 2000. This week's meetings were the 20th Cabinet-level talks since then.

But Seoul halted rice and fertiliser shipments to the North after the latter test-fired a series of missiles last July, and relations worsened following North Korea's Oct 9 underground nuclear test.

The provocations were the most serious challenge yet to South Korea's 'sunshine' policy of engaging its longtime foe.

On Friday, the two Koreas also agreed to conduct a long-delayed test run of trains on rebuilt tracks across their heavily armed border in the first half of the year. A planned test last year was called off by the North, whose military said appropriate security arrangements had not been made.

As expected, the North and South also agreed yesterday to resume reunions of families divided by the border, with meetings via a video link set for this month and face-to-face encounters in May.

The North put the reunions on hold last year after the South suspended aid.

Separately, North Korea's chief nuclear envoy, Mr Kim Kye Gwan, is visiting the United States to discuss the possibility of Washington and Pyongyang normalising ties.

North Korea will have similar discussions with Japan in Hanoi next week.

ASSOCIATED PRESS

S'pore-Malaysia trading link likely to be up only next year

THE trading link between the Singapore and Malaysia stock exchanges is likely to be established next year and not this year as planned.

But the bourses are looking at other ways to improve trading between the two markets, said Bursa Malaysia chief executive Yusli Mohamed Yusof yesterday.

He said at a press conference on Malaysia's economic outlook that 'the project is being held back as the Singapore and Malaysia exchanges are upgrading systems'.

Datuk Yusli said Bursa Malaysia expects to have its upgrading completed by the end of this year or early next year. So, the link 'won't happen this year. It will probably happen next year'.

The trading link has long been a discussion topic and he indicated last year that it could be up and running by this year.

The press conference, which comes ahead of next month's Invest Malaysia Conference, heard that the two exchanges are also discussing ways to make trading more efficient.

Bursa Malaysia is now looking to expand its product base by offering products in more than just the Malaysian ringgit and considering additional futures contracts.

Datuk Yusli said: 'We are improving our range of products, access to the market and introducing modernising technology.'

Mr Lim Chee Sing, who heads research at RHB Research Institute, which is a sponsor of the Invest Malaysia Conference along with Swiss bank UBS, said there was a 'confluence of positive factors' in Malaysia.

He cited an appreciating currency, growing demand in the property and construction sector, as well as a recovering agricultural industry with palm oil and rubber prices on the way up.

The recent earnings season saw good corporate results while pro-active policies from the Malaysian government are set to encourage more foreign investment. Government companies are also restructuring to become more efficient.

Stock market liquidity is strong, with the daily value of trades averaging almost RM3 billion (S$1.3 billion), nearly three times last year's average, according to Datuk Yusli.

The Invest Malaysia Conference will also discuss how Malaysia can be positioned better as an Islamic financial hub.

Int'l Capital makes reverse takeover deal

INTERNATIONAL Capital Investment - formerly Jurong Engineering - is about to get a new lease of life by buying the Akira electronics business.

The firm's shares have been suspended since Dec 1, 2005 after it sold off its engineering and construction business.

It had a year to find a new core business or risk being delisted but the firm won an extension from the Singapore Exchange (SGX) that was to end today.

In a timely announcement, it said last night that it plans to do a reverse takeover by buying the consumer electronics arm of mainboard-listed TT International, which comes under the Akira brand name.

Separately TT International also trades and distributes branded consumer electronics products.

International Capital will buy the rights to design, manufacture and distribute products under the Akira brand.

It will issue new shares worth about $90 million to TT International to pay for the deal.

International Capital has also applied to the SGX for a further six-month extension to present its proposal for relisting its shares.

Businessman Oei Hong Leong owns about 76 per cent of International Capital but if the deal is successful, TT International will become the firm's largest shareholder.

LEE SU SHYAN