Salary of the Singaporean Prime Minister
How much Singaporean pays their Prime Minister? Why the number is so high?
Singaporean ex-Prime Minister Lee Kuan Yew, in his autobiography “From Third World to First” said that the low salaries of ministers and public executives in many Asian countries ‘have destroyed’ those countries. So Singapore pay high amount to its Prime Minister. The salary of Prime Minister Lee Hsien Loong is around US$ 2 million a year. Compare this amount with the amount collected by ex-US President George W. Bush and his wife who earned taxable income US$ 719.274 throughout year 2007. This number consists of his salary as president plus his investment. While Hong Kong Chief Executive Donald Tsang receives HKD 334.758 per month or US$ 518.000 per year.
Last year Singaporean Prime Minister got USD 2.180.000. This year he experiences decrease of salary because Singapore economic is in recession. The Singaporean Government announced they would reduce the salaries of government members about 11 to 19%. The salaries of Singapore ministers are reduced by 18% to be Sin$ 1,57 millions while the extra allowances of parliament members are reduced by 16% to be Sin$ 190.000 per year.
The system to determine salary of Singaporean Prime Minister is unique. Since 1994, the salary has been determined based on the after tax income of six highest salaries of private sector professionals. So it is understandable if the salary of Singaporean Prime Minister is very high.
This year Singaporean economic growth is decreasing by 1%. The Investment Sector owned by Singaporean Finance Department Temasek Holdings, also announce the reduction of its senior managements. The salaries will be decreased by 15-25%. Singapore is facing a critical economic condition.