<body> <body>

Thursday, May 10, 2007

Here's my take on the issue. I think it is controversial because there is a difference between what happens in reality and how we imagine things should be like. We always think that leaders of a country ought to sacrifice to serve the country. They should. It's just a matter of how much of sacrifice they should make. One common argument in this issue is precisely that leaders ought not serve their country for monetary benefits but serve out of a passion to do good for their people. Believe it or not, they are. even with their high salaries. Most of us would never ever be able to earn that amount of money even if we work from the moment we are born till our death, but many people are earning that amount each year and some, even more. My aunt is currently working for Fedex in Hong Kong and she is earning much more than them, excluding all the other benefits she is entitled to. for example, she just shifted house and the penthouse she is currently leaving in has a monthly rent of $60,000 and the company pays for it. She does not have to pay for her maid, for her son to study in the British International School because the company pays for it. Also, the company gives her a few pairs of free SIA tickets each year. And she still has allowance for a car.

Imagine, how much does all that equates too. Of course, pol leaders ought not expect that huge a pay check. But they are among the top talents in SIngapore and if they were not politicians, they would be among the top executives in many multinational firms. Many of them chose to give up their high-paying incomes as doctors (like Dr Ng Eng Hen earns $4-5 million annually as a doctor before he turned to politics) or other professionals and are currently working at a discount.

Besides their monetary sacrifices, the choice to be in political office involves other opportunity costs. For example, the loss of privacy, the loss of private time with families, and to be constantly lambasted by people regardless of their efforts and good intentions. Many of us do not understand the kind of sacrifices they have to make because we never had to go through that.

As some of you know, I am currently helping out regularly at the meet-the-people sessions near my house, under Minister Teo. It is frequent for him to rush from one place to another, from dinners to meetings and to the mps sessions, often not having his dinner till he sees every single resident that turns up (which often is after 12 midnight). Being a volunteer, I stay and help till everything is done and the earliest is 12.30. Most of the time, we end at 2, and at times, 3 am. Think, they have been working ever since the early mornings. Even on normal working days, if you were to email him at 1/2 am, you will be able to receive a reply almost immediately. And sundays and saturdays are also filled with activities.

Of course, many people think mps sessions are easy. After all, you're just talking to residents. If you've tried, you wouldn;t say so. You have to handle all residents, even if they are mentally unstable. You must be able to speeak many languages (Malay, Chinese, dialects,...) and you have to help them solve their problems by giving them suggestions and these problems are not small. It was only after I helped out that I discovered the wide range of complex problems that many people face.

Then again, some people think: But of course, they are paid to do that. Indeed, they are. And they deserve every single cent they are paid. For they are constantly under pressure to manage the country. If they err, the futures of 4 million people will be destroyed in their hands. With such a work schedule, how much family time do they have? Many people argue that in the private sector, executives are under greater scrutiny. Are they? If they are, will Enron scandal even happen? Also, how many executives truly have to work almost 24/7? Even if they do, do people even bat an eyelid at they receiving a pay cheque of at least 5 times that of the maximum that our leaders will receive? No, they don;t.

Many people don't know, but the pol leaders themselves donate some of their income to help the poor in they constituency. I know, because I saw with my own eyes.

The fact and reality is that there are people out there who earn tens of millions of dollars a year. But because few of us have the opportunity to know them, we think $2 million a year is a big deal. And with the global competition for talent heats up, more and more talented people will be lured away from political and public office. It is not that they don't have the passion to serve the country. They do. But the sacrifice is too big. Where else can you earn more money than that and not generate a huge public backlash? Private sector. Where else can you earn that much money and not be ill-informedly labelled as corrupt? private sector.

It is unfortunate that the rise in pay has to be linked to the rise in GST. For those who think GST is high, look at the US. I paid a VAT of 17.5% on every single thing I bought in Las Vegas. Look at the US and London where the income tax is so high. Do you know that in Norway, it is actually better for one parent to work instead of both because of the high taxes? And besides, this is the way forward to maintain our competitiveness. Does everything has to have a cause and effect relationship?

American President earns less. Of course he does. Anyone mentioned the money past presidents receive for the right to publish their memoirs after they leave the office? You're talking about around US$30++++million dollars. And do you know that the American President is mainly in-charge of foreign policy? State and federal are separate. In the US, you can have a lousy government and the country's economy will still accelerate or maintain its performance. In Singapore, one lousy government who back-pedals on its policies, the country sinks to oblivion. This is the fact. We survive and do well because of foreign investments. Without that, we have nothing.

If you scrutinse the portfolio of the new mps and ministers, many of them are not govt scholars or are they from SAF. It is not a matter of where or how the govt or PAP finds its candidates. The issue is actually very simple. It's a matter of practicality and a recognition of the harsh reality.

For example, ask yourself: Why have you chosen to do that particular undergraduate study? Can you deny that the possibility of having a good job that pays well is one large factor in dictating how you choose? Like you and all of us, everyone does cost-benefit analysis in deciding if to remain in private sector or enter public sector or office. And like many, even some of us, we have ruled out working in public sector because the pay is not as attractive. Who wants to work almost 24/7? Who wants to stay or accept a job that gives no distinction between public and private realm of life? Who wants to be constantly under the public's scrutiny? Who wants a job that denies them quality family time?

It is easy to dismiss all these and simply lambast the political leaders for the pay hike. But if you are in their position one day, I wonder if you will react differently. For we always impose an idealised imageof what ought to be on to what is really the case. And when reality deviates from our ideals, we simply lash out and condemn. Don't react emotionally. Open your mind. Or, help out at MPS sessions and see for yourself. After all, many MPs are looking for younger people to help out.

These are just my humble opinions. I understand many people will not see it the way I do. Try thinking the economics way and you might understand better. Think: opportunity costs :)

Take care

Kaixian



rmb to sign off! sang at 4:46 PM


SHOUTOUT!





LINKS

xx
eugene
kaiguan
jeff
05s64




ARCHIVES

June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007
May 2007
June 2007
July 2007
August 2007
September 2007
October 2007
November 2007
December 2007
January 2008
February 2008
March 2008
April 2008
May 2008
June 2008
July 2008
August 2008
September 2008
October 2008
November 2008
December 2008

CREDITS

layout: +
fonts: +
brushes: + +
image: +