Skip to main content

The $3000 Question and the Million-Dollar Ministers’ Answer


If you want to question whether the $3000 median pay for Singaporean workers is high or low, we should also ask the same question to the ministers: Are you worth a million dollars in salary?

Han Fook Kwang tried to use other mouths to explain the situation and gave the answer: we have to compare with others, the Southeast Asians and even the Europeans. Do Singaporeans workers deserve their wages?

Then, by this definition, it provides us a foundation to compare our ministers’ pay with our Asian neighbours, European and American politicians.   It will be interesting to find out the gap ratios between $3000 Singaporean workers and million-dollar ministers as compared to workers and ministers in other countries.   I don’t have the answer.  Perhaps, ST with her rich resources and correspondents over the world can do a better comparison and provides her readers a balanced report.

We should also ask the ministers why our wages are so high and our productivity and creativity are so low.  If the workers are overpaid, then how about the minsters, are they also overpaid?  How come we end up with high pay high cost and yet problems not solved.  

There is a Chinese saying: money talk is emotional. (将钱伤感情). We talk about the $3000 for average Singapore workers and million-dollar for ministers. It hurts all of us as money is always not enough. However, when you have a million you will have more resources and leverages to deal with you daily life.

Just to give you three million-answers and examples to do a comparison:

1. Loan rules aimed at those who over-stretch to invest.http://www.todayonline.com/singapore/loan-rules-aimed-those-who-over-stretch-invest

If you have a million you will not have problem with the Total Debt Servicing Ratio.  The banks will be more than happy to approve your loan application. If not, you are belonged to the ‘over-stretch’ category.  You should not invest and instead you should stay put with one house or one apartment.

With $3000 salary, it is better you stay at HDB flat even that you may not have enough cash left over. For example, a 30-year loan with 3.5% interest (the government thinks the current low interest will not hold) and the flat $400,000, you will need a monthly instalment of $1,796. (=pmt(0.035/12,360,400000)

In this case, the million-dollar minister may be right. Don’t anyhow invest, watch your cash and take note of the interest rate.  Your financial planner can give your this answer but he costs less than a million.  

2. MOH to explore ways of keeping healthcare affordable http://www.todayonline.com/singapore/moh-explore-ways-keeping-healthcare-affordable

[The Ministry of Health (MOH) will explore enhancing risk pooling to make the national health insurance scheme, MediShield, more comprehensive. As participants at an Our Singapore Conversation session yesterday called for more flexibility in the use of Medisave to help reduce their out-of-pocket expenses, Health Minister Gan Kim Yong said that one way to manage the cash component is by enhancing insurance. He also reassured participants that the Government will increase its share of healthcare spending to ensure healthcare costs remain affordable.]

The above is reported in Today. Out-of-pocket expenses are the cash portion that a patient needs to pay. However, with adjustment and a comprehensive Medisheild, your premium will also increase.

Affordable medical care is a big issue to many families. For an unlucky family, can a $3000 wage meet the high medical expenses for major illness?

Affordable or not affordable – it is a simple question but in the past 20, 30 years, the PAP is not able to solve it.

3. More to benefit from legal aid services

The report said: Another 300,000 Singaporeans and permanent residents will potentially benefit from amendments to the Legal Aid and Advice Act, which take effect today. It also stressed that ‘To be eligible, applicants must pass both a means test and a merits test.’

With $3000 monthly wage you will fail the means test.    

Interestingly, with an increasing GDP per capita in Singapore, why are there more needs in legal aid services?  The answer is high Gini coefficient and wider rich-poor gap. So, is $3000 a fair representative?

Not sure whether merits test is suitable for people who are over-stretch in property investment and over-burden by medical costs or not.  Since $3000 fails the means test, in general, it should also fail the merits test.  Perhaps, you need a MP’s letter to give you the merit.  

From property, medical care to legal advice, have the three examples given some justifications to the $3000 question?  This is a very difficult question even the million-dollar ministers cannot give a proper and affordable answer.


Do we deserve $3000? Can the Prime Minister give a fair and straight answer? 

Comments

Popular posts from this blog

Sub-standard PAP and the Singapore education system

I make a 'policy shift' when I hear the debate of right politics, constructive politics and sub-standard opposition. My original aim is to discuss about “Su Dongbo, Zhang Juzheng and Singapore education system”. The discussion will end with a sub-standard PAP, in particular from the assessment of the quality of PAP potential candidates. Another policy shift is to discuss it like a play, a drama and make it more entertainment rather than a sub-standard political discussion. Act 1 Gangster’s demand Imagine a sense in the Hong Kong's gangster movie (or a godfather movie), the gangsters' master is shouting at his poor opponent and demand him to give a price for his wrong act. The poor guy without any resources can only offer his body or his service to work for the master. Back in his own chamber, the master is still not satisfied and continues to shout 'don't play, play, you think you are hero, you think you are tiger, or superstar or acting

因为有比较, 才知道做得不够, 才明白什么叫做易通。

  因为有比较, 才知道做得不够, 才明白什么叫做易通。 如果只有一套解决方法,很难看出好坏,方便还是不方便,易通还是不容易通。用新方法代替旧的系统,人们当然会做比较,尤其是科技产品,使用的人很多,一用就马上看到结果。 这是一个竞争的世界,即使一党独大,也要考虑到便民。当人民觉得不方便,不好用,不易通,就会反映,发声,不满。为什么没有预先想到,最可怕的是测试时,已经接到反应,还是不加改善。或许,行动党还抱着“令伯”最大,用者自行解决问题。 易通公交收费系统的整合,似乎缺少一种人文,沟通,反而更加多表现出政府的独断独行。尤其重要的是,如果只有一套系统,我们是看不出问题,做不出好坏的评价。 这其实证明国会里不可以只有一把声音,没有比较,没有进步。

梁文辉可能有点傻, 但却是真的真情流露。