Governance

The Honest Discount

Singapore just raised its ministers' pay. For Guam, the reasoning matters more than the numbers, because the future it wants will need people it cannot yet afford.

By Samuel S. Kim
September 22, 2026
A government that underpays rarely saves money — it pays the market price anyway, to overseers and temporary hires, and gets less. Singapore's case for competitive public salaries is not about matching private pay, but about narrowing the gap to a discount a capable person can accept with honor.
This article was published on Kandit News on September 23, 2026.

There is a kind of professional every government needs and rarely keeps. She could run the finances of a hospital or a school system almost anywhere. She has two children, a mortgage, and aging parents who count on her. The government asks her to serve, and she wants to. Then, after the children are asleep, she sits at the kitchen table and does the math. The public job pays a fraction of what her skills command elsewhere. She sets the pencil down, and the government loses her without ever learning her name.

The arithmetic is the same for a clerk or a cabinet minister. Only the zeros change. And the government that loses her rarely saves money. It pays the market price anyway, to overseers and temporary hires, and gets less. Worse, it loses those who might have built something. On September 8, Singapore's Prime Minister Lawrence Wong made a version of that case to his Parliament.1

Wong asked for what most politicians avoid: higher pay for his own Cabinet. Salary norms for Singapore's political officeholders had not moved in 15 years. "Restraint cannot become neglect," he said.1 The Prime Minister's salary rises from S$2.2 million to S$3.6 million, in a country where the median wage earner made S$5,775 a month in 2025.2 Wong pledged to donate his own increase for five years and held other ministers to a one-time raise of up to 9 percent.1

His case rested on a story from his own career. As head of Singapore's Energy Market Authority, he needed someone to build a liquefied natural gas terminal, work no one on his staff had done. He recruited the best candidate available and paid him more than he earned himself. The terminal arrived safely, on time, and on budget.1

Before the last election, Wong invited several senior civil servants and corporate chief executives into politics. None accepted.1 Public life already costs a family its privacy, he argued, and salary should not add one more burden. He recalled Lee Kuan Yew's warning in 1970 that a nation cannot rely on people willing to make extreme sacrifices at their families' expense.1

Singapore does not try to match private pay, and Wong said it never will. Its rules require full transparency, no hidden perks, and salaries competitive enough to attract capable people but discounted substantially to reflect the spirit of service.1 Wong spoke of ministers, but the principle reaches every level of government.

Guam's government manages a $1.35 billion executive budget request for FY2026, before counting federal programs.3 Its pay system has rarely kept pace with that responsibility. A Hay Group study completed in 2009 found GovGuam's salary structure averaged 59 percent "behind market," yet its recommendations took effect only in 2014.4 That same year, the Legislature retroactively raised pay for elected and appointed officials without a public hearing, some beyond what Hay recommended, while most classified employees saw no change.5

Targeted raises have since followed for educators, law enforcement, and nurses.6 7 Each was welcome, and each arrived one agency at a time, after recruitment trouble had already taken hold. Guam once had a standing process, at least for elected officials. A 1991 law created a commission to review their pay every five years, until the Legislature repealed it in 2005.8 In October 2025, the Governor proposed reviving it.9

The savings are an illusion. The bill simply moves, and families end up paying it.

In 2003, the U.S. Department of Education designated the Guam Department of Education a high-risk grantee. From 2009, an outside fiduciary oversaw its federal grants, at a cost of as much as $42 million over 14 years, paid from local funds that could otherwise have reached schools.10 In 2013 alone, GDOE paid that fiduciary $2.6 million, and the Office of Public Accountability traced delays in reconciling federal funds partly to the loss of key accounting staff.11 Those accountants were, in every way that matters, the woman at the kitchen table. That single year's fee equaled the average salaries of roughly 30 financial managers on Guam.12 Students paid for empty desks in an accounting office they will never see.

In June 2026, the Department of Education announced its annual job fair with 240 teaching positions still open, less than three months before the first bell.13 Every one of those openings was a classroom still waiting for its teacher. The department's FY2023 audit still reported material weaknesses in its controls over federal programs.14 When the government raised nurse pay in 2024, the Governor cited the heavy cost of relying on travel nurses.7 A patient at 3 a.m. needs a nurse who knows the ward and plans to stay. Guam pays either way; the only choice is whether the money buys commitment or a short-term contract.

In the engineering teams I have led, the arithmetic ran opposite to what most budgets assume. One excellent engineer paid double cost about two-thirds as much as three average ones, and consistently delivered more. The savings did not stop at payroll. Fewer mistakes meant less rework, a smaller team meant less time lost to coordination, and problems that would have lingered for months were solved before they grew expensive. A study of 633,263 people, from scientists to politicians, found the same lopsided pattern: a small group of top performers produces an outsized share of results.15 Paying less for average talent is not thrift. It is buying more of the cheaper thing and then wondering why the results cost so much.

Is it fair to hand someone a billion-dollar public trust, pay them far below their worth, and act surprised when the work falters? And if that person takes on side work to keep the lights on at home, is that a failure of character, or a failure of design?

Yet stopping the losses is the smaller argument. At today's pay, GovGuam may already be getting the best people its money can buy: dedicated employees who hold the government together. The harder question is what the island is trying to buy. Keeping a government running and changing an island's trajectory are different jobs, and they draw on different pools of talent.

Singapore understood that difference early. Wong reminded Parliament that his country is tiny, has few natural advantages, and cannot afford to let problems fester. He added that the people who study governments around the world keep pointing to Singapore as a model.1 Geography did not earn that reputation. The people Singapore made a point of recruiting did.

Guam could write a similar story: a small economy that needs less from Washington each decade and exports its ideas along with its goods. The people who could design that future, who know how to diversify an economy, modernize a tax system, or turn federal grants into lasting local capacity, have other options. A Guam that others write about, and send their students to study, will not be built by people who had to turn the job down.

The strongest objection is that money does not buy integrity, and Singapore proves it. In October 2024, former transport minister S. Iswaran, a member of one of the world's best-paid cabinets,16 became the first former Singapore Cabinet minister sentenced to prison, for 12 months. His offenses were accepting valuable gifts as a public servant and obstructing justice.17

The objection is fair, but not decisive. Wong himself called character a veto factor that no amount of talent can override.1 Pay does not create integrity. It widens the circle of people with integrity who can afford to say yes. And Guam's 2014 raises, which served the people who voted for them, argue for a better process, not permanently low pay.

The fix begins by taking pay decisions out of the hands of those who benefit from them. An independent commission could review agency directors as well as elected officials, publish every salary in full, refresh its market data every five years, and tie leadership raises to the clean audits the Office of Public Accountability already publishes. The goal is never to match private pay, only to narrow the gap to a discount a person can accept with honor.

Christians have long understood stewardship as a trust that runs both ways. The one entrusted with much owes a faithful accounting, and the one who entrusts owes fair provision for the work. Public service should be a calling, and a calling should cost something.

It should not cost the woman at the kitchen table her children's security, because she may be the one who helps build the Guam others come to study. The real test of any pay system is simple. When she finishes the math, can she still say yes?

Footnotes

  1. Prime Minister's Office Singapore, "PM Lawrence Wong on Government's Response to '2026 Review of Salaries for Political Appointment Holders and Members of Parliament,'" September 8, 2026. https://www.pmo.gov.sg/newsroom/pm-lawrence-wong-on-government-response-to-2026-review-of-salaries-for-political-appointment-holders-and-members-of-parliament/ 2 3 4 5 6 7 8 9

  2. NBC News (Reuters), "Singaporean prime minister, world's highest-paid leader, gets a 64% pay bump," September 9, 2026. https://www.nbcnews.com/world/asia/singapore-government-ministers-pay-increase-rcna596744

  3. The Guam Daily Post, "Administration presents $1.35B 2026 budget." https://www.postguam.com/news/local/administration-presents-1-35b-2026-budget/article_f46c5597-1d59-44db-8576-dcf51a714488.html

  4. Bureau of Budget and Management Research, FY2025 Budget Appendix D, Part 1: Competitive Wage Act Pay Plan. https://bbmr.guam.gov/wp-bbmr-content/uploads/2023/11/FY-2025-APPENDIX-D-Part-1-CWA-Pay-Plan.pdf; Department of Administration, Competitive Wage Act of 2014 circular. https://doa.guam.gov/wp-doa-content/uploads/2022/01/DOA-Org-Cir-2014-015-CWA2014-Dept-Heads.pdf

  5. The Guam Daily Post, "GovGuam pay issues persist at onset of new study," March 13, 2017. https://www.postguam.com/news/local/govguam-pay-issues-persist-at-onset-of-new-study/article_291617aa-0467-11e7-8c18-9b003c8dbd6a.html

  6. Department of Administration, Classification and Pay (Educator Pay Plan 2022; Law Enforcement-Public Safety Compensation Plan, January 2022). https://hr.doa.guam.gov/branches/classification-pay/; The Guam Daily Post, "Education board backs increase in teachers' pay," January 2022. https://www.postguam.com/news/local/education-board-backs-increase-in-teachers-pay/article_74e187e0-7ce5-11ec-b53e-8bc29f5296b6.html

  7. Office of the Governor, "Pay Adjustments to Support GMH Nurse Recruitment and Retention," 2024. https://governor.guam.gov/?p=23387 2

  8. 2 GCA Ch. 1, compiler's notes on P.L. 21-058 and P.L. 28-068 (Justia). https://statecodesfiles.justia.com/guam/2024/title-2/chapter-1/chapter-1.pdf

  9. Office of the Governor, "Governor Introduces Bill to Establish Independent Commission to Set Elected Officials' Salaries," October 31, 2025. https://governor.guam.gov/press_release/governor-introduces-bill-to-establish-independent-commission-to-set-elected-officials-salaries/

  10. Marianas Variety (The Guam Daily Post), "Acting governor announces end of GDOE's third-party fiduciary." https://www.mvariety.com/?p=57769; The Guam Daily Post, "GDOE pays up to $3M annually on oversight, hopes for reversal soon," December 2021. https://www.postguam.com/news/local/gdoe-pays-up-to-3m-annually-on-oversight-hopes-for-reversal-soon/article_0396ce8e-5e3f-11ec-a0a2-ffc94059493a.html

  11. Office of Public Accountability, "Guam Department of Education FY 2013 Compliance Highlights," June 29, 2014. https://gwosa2.opaguam.org/sites/default/files/gdoe_compliance_highlights_2013.pdf

  12. U.S. Bureau of Labor Statistics, "May 2023 State Occupational Employment and Wage Estimates: Guam" (Financial Managers, annual mean wage $83,010). https://www.bls.gov/oes/2023/may/oes_gu.htm

  13. The Guam Daily Post, "GDOE to host annual Job Fair, 240 vacant teaching positions," June 2026. https://www.postguam.com/news/local/gdoe-to-host-annual-job-fair-240-vacant-teaching-positions/article_8b8ea2b2-a8eb-487d-b3b0-d2485b5d9fb6.html

  14. Office of Public Accountability, "Guam Department of Education Financial Audit, Fiscal Year 2023: Financial Highlights," November 11, 2024. https://gwosa2.opaguam.org/sites/default/files/gdoe_highlights23_rev.pdf

  15. O'Boyle, E. and Aguinis, H., "The Best and the Rest: Revisiting the Norm of Normality of Individual Performance," Personnel Psychology 65 (2012): 79–119. https://www.hermanaguinis.com/pdf/PPsych2012.pdf

  16. CNN Business, "The world's best-paid politician is getting a $1 million pay rise," September 9, 2026. https://edition.cnn.com/2026/09/09/business/singapore-pay-rise-intl-hnk

  17. The Straits Times (reproduced by Singapore's Corrupt Practices Investigation Bureau), "Iswaran sentenced to 12 months in prison," October 4, 2024. https://cpib.gov.sg/files/news/20241004_ST_Iswaran_sentenced_to_12_months_in_prison.pdf

Tags

GovernanceGuamSingaporePublic ServiceCompensationTalentAccountability

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