Recently,
there has been much debate about the salary increments for the Selangor Mentri
Besar, speaker, state executive councillors and assemblymen.
Most
agree that some salary increment is necessary. After all, the current salaries
are incredibly low. You cannot expect your elected representatives to be honest
and dedicated if they are not even earning enough to survive and provide for their
families with a decent livelihood.
But
there are many who argue over the large quantum of the salary increase. Worse,
some even suggest elected representatives should do “national duty” and be paid
pittance to serve the people.
Thus,
the question really boils down to what is the “right” salary. We have already
noted that despite a doubling of the Selangor Mentri Besar’s salary to RM30,000
a month, or RM360,000 per year, he would still earn far less than a CEO of a
listed company, who typically earns RM1 million to RM5 million annually, many
even over RM10 million.
Let
us take the example of a federal cabinet minister, who officially earns about RM15,000
a month – or RM14,907 to be exact. The cost of living for members of parliament
and state assemblymen are harder to simplify due to the varying size of
constituencies and where they live.
The
attached table shows that despite living a frugal and simple life – like many
squeezed middle income urbanites today -- they will still be grossly out of
pocket.
A
cabinet minister earning RM15,000 per month will receive about RM12,311 net of
taxes.
On
the expenses side, we have included a simple frugal lifestyle centred around a
family with a house wife and two school going children, a Toyota Camry family
car costing RM150,000 (for the wife and family to use, apart from the official
car for the minister) and a suburban home costing RM900,000.
Much
of the monthly expenses will go towards servicing loans for the home and car,
both assumed to be taken with about 85% margin of financing. Monthly
instalments for the two will cost RM7,425. Other major monthly expenses include
food (RM4,500), education (RM4,000) and maid (RM1,200).
Using
these assumptions, there is a monthly deficit of RM10,067, or RM120,806 per
year.
Obviously,
the table is neither comprehensive nor completely accurate for a minister. But
I believe it represents a conservative picture of a typical urban middle class
family faced with the rising cost of living and asset prices.
As
senior politicians with responsibilities for running the country, surely the
ministers – by extension all elected representatives -- deserve to be
presentable. They must have a clear mind to do what they are entrusted to do.
They must be financially comfortable, such that they can enjoy a comfortable, albeit
frugal lifestyle totally funded from their salaries, and not from other
sources.
Some
argue that we could opt for rich politicians who do not need to be paid. One
example cited by a local newspaper was Michael Bloomberg, the mayor of New York,
who is reportedly entitled to a US$225,000 annual salary but waives it for a
token US$1.
There
are a few major holes in this argument.
Firstly,
don't we want the best person to serve the country, including those who are not
wealthy? To attract those who are not already wealthy, we must pay a salary
sufficient for their livelihood, even if they want to sacrifice for the good of
society.
Secondly,
in certain countries where the rich are elected to positions, like Bloomberg in
New York, he will never be able to benefit personally from the position.
Are
we ready for the same? Will we have a way to make sure that tycoons who become ministers and PM's do not abuse their positions to promote their own business interests?
Are
not the business elites already too powerful, making decisions as king makers,
often at the expense of the public?
If
so, then what we need are honest, dedicated and capable people to become our
elected representatives, to serve the people and the country. And in order to do
so, surely, we must provide them a decent livelihood for their families.
So,
let us be realistic and bipartisan, and not be hypocritical or delusionary.
We
should not set government salaries so unrealistically low that the honest cannot
even survive and therefore do not see a future in serving the people.
