Minister's Annual Salary Reaches 1.2 Billion Won, Public Officials Receive Exceptional Bonuses... Singapore Drives Innovation with Strict Performance-Based System [City Without Regulations, Mega Sandbox] ⑦

Singapore's Government Efficiency and Policy Quality Ranked Among the World's Best
High Public Trust in Government-Designed Policies and Regulations
A Thoroughly Performance-Oriented Civil Service in Singapore
Ministerial Salaries Nearly Ni

Singapore's sophisticated regulatory innovation is underpinned by a performance-oriented culture within its civil service and an incentive-based institutional design. In Singapore, public officials are highly respected. Policies and regulations crafted by the government operate on the foundation of strong public trust and support. The public sector compensation system is also thoroughly performance-based. Thanks to a policy structure focused on generating tangible benefits and commercialization, the efficiency of the government and the completeness of its policies are considered world-class.

In the '2025 Global Innovation Index (GII)' released by the World Intellectual Property Organization (WIPO), Singapore ranked first in ten detailed categories, including government efficiency, regulatory quality, and policy stability. Singapore outperformed Switzerland, Sweden, and the United States, securing the highest number of first-place rankings. While South Korea excelled in private-sector indicators such as 'corporate R&D expenditure as a percentage of GDP,' Singapore stood out in government-led indicators such as 'government efficiency,' 'regulatory quality,' and 'net inflow of foreign direct investment (FDI).'

In Singapore, corporate innovation operates within a meticulously designed system created by elite bureaucrats. Companies that meet government-set standards are granted broad autonomy and the authority to execute swiftly. The seamless structure that connects technology verification to commercialization is what constitutes the 'Singaporean innovation engine.' This structure also contributes to the high level of public trust in the government.

Support for government policies stems from Singapore's unique talent development system. From primary and secondary education, talent is selected through nationwide standardized exams, and key personnel needed for national development are nurtured. These individuals are educated at top global universities such as the National University of Singapore (NUS, ranked 8th in the QS World University Rankings), and many of them enter the public sector, taking charge of policy design and implementation.

As the nation's cultivated talent goes on to create national policies, public trust and acceptance of these policies naturally increase. In Singapore, being a public official is considered one of the most prestigious careers. The government attracts talent by offering compensation competitive with the private sector. As of 2024, the starting annual salary for a minister is about 1.1 million Singapore dollars (approximately 1.2 billion Korean won, including performance bonuses). This is nearly nine times higher than the basic salary for a ministerial position in South Korea (about 140 million Korean won).

The high level of expertise and sophisticated administrative system within the civil service also play a significant role in attracting foreign companies. Foreign companies trust Singapore because it guarantees predictable administration instead of complicated licensing procedures. The government has established a rapid approval system and, leveraging its low tax rates (corporate tax at 17% and income tax up to 24%) and status as an Asian hub, has designed the environment so that global capital can settle stably. The resulting investments and business activities, in turn, create a virtuous cycle that boosts domestic demand and employment.

The criteria for attracting companies are also clear. Only technologies with commercialization potential and the ability to generate profits are eligible for government support. Once results are verified, incentives are provided to the responsible public officials. The success of attracting investment directly translates into personal rewards. Every stage of policy is designed with a focus on efficiency, profitability, and tangible outcomes.

Public sector compensation is strictly performance-based. There must be concrete and clear achievements. Between 30% and 40% of total annual compensation is variable and based on performance. The 'national bonus' is determined by macroeconomic indicators such as real income growth rate, unemployment rate, and GDP growth rate, while individual incentives are awarded separately. For example, public officials in the overseas investment attraction department receive incentives based on the actual investment attracted to domestic companies. Rewards are determined not just by evaluation scores but by specific figures such as revenue generated and the number of deals secured. This is why all government policies and support are designed around profit generation and tangible results.

With high compensation comes a strong sense of responsibility. A Singaporean government official whom the reporter met emphasized the government's communication methods while showing the government portal. The official said, "All public officials below the ministerial level are required to respond to citizens' suggestion emails within a designated timeframe," and added, "We must clearly state what is possible and what is not, and communicate this transparently."

On the Singapore government website, even Prime Minister Lawrence Wong's email address is made public. If you search for the name of any public official below the prime minister, you can easily find their email address. In South Korea, although there are various initiatives such as the 'People's Petition Portal,' the email addresses of ministers or heads of agencies are not disclosed to the public. Of course, considering the difference in population size, there are limitations to direct communication with every citizen. However, the trust in government, communication with citizens, and the nation-centered talent development system are aspects that South Korea could look to as references.

The head of a South Korean company's Singapore branch explained, "In Singapore, leaders recognized by the nation design policies with a sense of mission to serve the country from a young age. This culture has been the driving force behind reducing social conflict and enabling the stable development of the system. Combined with low tax rates and a strategic location, Singapore has been able to grow into a global innovation hub."