NSP Statement on the Value of National Service and Ownership of CPF Monies

1.     The National Solidarity Party (“NSP”) believes in people-centred politics and nurturing a positive political culture in Singapore.

2.    In the last two weeks, two official comments made in the context of Budget 2015 have stirred up strong negative emotions from the public and generated a great deal of speculation over the value of national service by our NSmen and the ownership of monies in our CPF accounts.

3.     In the Post-Budget 2015 Public Forum held on 26 February 2015 organised by feedback unit Reach, a suggestion was raised by a participant that national serviceman should be paid more. Senior Minister of State for Finance and Transport, Josephine Teo, was reported [1] to have replied that whilst she noted the importance of giving NSmen recognition, “service to the country cannot be measured in dollars and cents”. Her reply riled the public and whipped up a public discourse on why Ministers are treated differently when they are also performing a kind of national service.

4.     Then, on 3 March 2015, a Nominated Member of Parliament (“NMP”), Chia Yong Yong, made certain comments in her speech during the Budget debate which called into question the ownership rights of CPF members to the monies held in their CPF accounts [2]. She argued that CPF members were not the only ones contributing to their own accounts as there are co-payments by employers and top-ups from public funds.

5.     This statement is issued to highlight the ground reactions to the aforesaid comments and the concerns of the people affected by them.

National Service – the difference between Ministers and NSmen

6.      It is acknowledged that NSmen perform an indispensable role in the defence of our country and nation-building [3]. In April 2012, NSmen received a $60 pay-rise across all ranks. Minister of State for Defence and Education Lawrence Wong then said in Parliament that the raise "goes one step further in signalling our acknowledgment of our servicemen's commitment and service" [4].

7.    With the revision, a recruit now receives a monthly pay of $480.00. Whilst this amount is paltry and hardly compensates many of the NSmen for their loss of income, no one begrudges the pay they receive as they perceive national service as a worthy sacrifice for the nation.

8.    The comment was seemingly harmless but when it came from a highly remunerated minister whose job is also perceived to involve a sacrifice to the nation, it immediately invited a backlash. Although NSmen’s contributions are deemed not be measurable in monetary value, ministers’ salaries are on the other hand, measured in dollars and cents and against the highest earned incomes in the land.

9.    It is a well-known fact that the salaries of our ministers and top civil servants are second to none in the world. This fact has been a constant source of public consternation and has often been voiced out in frustration with complaints of poorly managed costs of living and stressful living conditions. This public consternation eventually led the government to form a committee to review ministers’ salaries which recommended in January 2012 wage cuts of between 36% and 53% for political appointment holders [5]. The recommendation continued to benchmark the salaries to the median income of the top 1,000 earners who are Singapore citizens but with a 40% discount to signify the ethos and sacrifice that comes with political service. 

10.    The wage cuts reduced the intensity of public consternation but it never quite dissipated. It continues to constantly diminish the government leaders’ moral authority in the eyes of the public whenever frustrations set in. It has happened again with the suggestion for NSmen to be paid more. 

11.    The government’s legal authority to rule on all matters relating to law and order is unquestionable. However, for matters that require the government to exhort the people to be charitable, compassionate and generous or to make sacrifices for others, it needs to rely on its moral authority. Sadly, the government’s moral authority has been seriously diminished by the commercial formula used to calculate the salaries of those holding political and high public offices. It is this commercial formula that has wedged itself between the people and the government and which has caused the government to lose much of the trust and respect that was once enjoyed by our first generation of leaders.

12.    NSP urges the government to consider de-linking the salaries of ministers from the earned income of our top income earners. NSP proposes that ministerial salaries should take reference from the salary scales of political appointees of a “basket” of countries, taking into account similarities and discounting for differences.

13.    By delinking ministerial salaries from the earned income of our top income earners, the remuneration of ministers will no longer be a thorn in the flesh and the government will be able to regain much of its moral authority. 

CPF Accounts – monies belong to members