PSP's Lawrence Pek questions timing of new ministerial salary review

Lawrence Pek, former Secretary-General of the Singapore Manufacturing Federation, has questioned the timing and justification for a newly announced review of ministerial salaries.

Posting on Facebook on 13 January 2026, Pek, who had been a candidate for Chua Chu Kang GRC, expressed concern over the rationale cited by Coordinating Minister for Public Service Chan Chun Sing. Chan stated that the last salary review was a decade ago and that the Government had deferred a planned 2023 review due to economic uncertainties.

Pek remarked that he was "perturbed" by the implication that the passage of time alone warranted a new review. He highlighted that the challenges cited in 2023 for deferring the review—global economic uncertainty and the need to focus on pressing issues—remain unaddressed.

Citing examples, Pek noted that unlike neighbouring ASEAN countries such as Thailand, Malaysia, Cambodia and Vietnam, Singapore has not reached a trade agreement with the United States despite increased tariffs imposed in 2025. He referred to two ASEAN meetings held in May and October 2025 in Kuala Lumpur where such matters were discussed.

“These key challenges have remained unchanged,” he wrote. “This begets the question: what has changed to merit a review of ministerial salaries now?”

Pek called for transparency, stating that “Singaporeans deserve clarity on why this review is being prioritised at this moment”.

The Government announced on 12 January 2026 that a new committee has been convened to review the salaries of all political appointment holders, including ministers, elected Members of Parliament (MPs), and Non-Constituency Members of Parliament (NCMPs).

The committee is chaired by Gan Seow Kee, chairman of Singapore LNG Corporation and an alternate member of the Council of Presidential Advisers. It comprises members from the public, private and people sectors, including leaders from the Public Service Commission, NTUC, Singapore Management University, and Ernst & Young LLP.

According to Chan, the committee will evaluate current salary levels within the existing framework, and where necessary, recommend refinements. The Government will review the committee’s findings once its report is submitted and provide an update in Parliament.

This review marks the third major review since the current framework was introduced in 2012. At the time, an independent committee led by Gerald Ee recommended benchmarking an entry-level minister’s salary to the median income of the top 1,000 Singaporean earners, applying a 40% discount to reflect the ethos of public service.

The Government accepted the recommendations, and the new salary structure took effect from May 2011. A subsequent review in 2017 found the framework to be sound, recommending annual adjustments based on benchmark salary movements. However, no changes were implemented then, with the Government citing economic transition as a reason.

In 2023, a five-year review was due but was officially deferred, with the Government pointing to an uncertain global environment.

During the 2018 Parliamentary debate on salaries, former Deputy Prime Minister Teo Chee Hean noted the structure remained valid and said that the Government would maintain existing levels until further notice.

Despite these adjustments and reviews, Singapore’s political leaders remain among the highest paid in the world.

According to World Population Review, Prime Minister Lee Hsien Loong receives an annual salary of approximately US$1.61 million. In comparison, leaders of other developed nations, including the United States, United Kingdom, Germany and Australia, receive significantly lower salaries.

The PSP has consistently raised questions about political salaries. In January 2023, Hazel Poa, then serving as an NCMP for the party, asked in Parliament whether the scheduled salary review committee had been appointed. Chan responded that the Government would revisit the issue but did not commit to a specific timeline.