I see disturbing signs, or good signs, depending on which side you are on. And I read it from the development around the SMRT debacle. There are signs that the ruling party is changing or attempting to change and there is a good reason for doing so. First of all, there are a couple of factors necessitating this change. One is the runaway cost of living caused by many things but possibly housing cost being the main culprit. Next is the issue of Ministerial salaries. My take on the Ministers' salaries is this: it was never meant to match the remuneration of private business owners. For example bankers who own their own banks, how can you match that? The large property developer is another example.The Ministers' salaries was meant to measure respectably with the CEOs of GLCs because they come from the same source, the same pawning pond. Over the past 10 years or so, the top GLC salaries have shot up tremendously, at first lagging by a lot overseas rates but now actually leading them. Now, for political reasons, ministerial salaries have to come down. The amount cannot be too little as it would not achieve the desired political impact. This will start a series of adjustments beginning with the salaries of the heads of GLCs in order to restore the equilibrium. From the signs shown in the SMRT incident, this has already started. If you analyse the Chairman's words - "the CEO will be held responsible" they tell as much. This Chairman means it. He is already well into his 60's. For many he should already be in his retirement. So what if he oversteps the line? More likely he is actually tasked to do what he is supposed to do. In the place of the lady
will be someone who is willing to accept a lower salary and this will go on one by one with the rest of the GLCs. Of course many of the elites will grumble. But salary is a relative thing and this brings me to the second factor - the cost of property, particularly the higher end properties. Those prices will be brought down to make it affordable to the elites. If they are locals or PRs, they are in fact getting a relative discount based on the new stamp duty scheme. This should adequately compensate them for their loss of income. When these two costs are lowered and in place, the overall cost of living will be moderated. What better way to ensure this than to have the policy makers be in the same boat as the rest of us. So I stress again. Things have already been started. For opposition members who have wanted to take advantage of the bad situation, they have to move fast. Otherwise, they will be too late.
