He suggested that full-time staff at charities should be paid salaries 'commensurate with alternative jobs they could hold' - a proposal greeted immediately with doubts last night by several charities.

But Mr Goh, who has focused his speeches in recent months on charities, said this is the only way to get good people.

'Otherwise, the charity sector will fail to attract enough professional staff and lag behind the private sector in terms of efficiency and management,' he said at a fund-raising dinner for Assisi Hospice held at Pan Pacific Singapore hotel.

The donating public, he added, is no longer just interested in knowing the good work done by charities, but also wants to have confidence that donations are used 'prudently and effectively'.

Thus, it is important that they have robust systems to ensure sound governance, transparency and accountability. Volunteers on their boards must also be people of integrity with a deep sense of social responsibility.

'Only then can the charities be run well and earn the trust of the public,' he said.

He also urged corporate leaders to be 'more forthcoming' in volunteering to sit on charities' boards.

While some may be hesitant because of stricter supervision by the Commissioner of Charities, Mr Goh said it is the wrong way to react. They should welcome it as tighter regulation will help them as they steer charities towards higher standards.

SM Goh also paid tribute to Assisi, noting that the hospice has provided a comprehensive range of palliative care services and fostered better understanding on care for the dying.

Charities The Straits Times spoke to last night welcomed Mr Goh's advice, but asked who will foot the bigger salary bill.

Co-founder of Care Singapore Adelyn Poh said: 'I salute the Senior Minister for saying that. But where is the money coming from?'

She has about 20 full-time employees, among them master's degree and doctorate holders.

She is unable to pay them what they could get elsewhere because, first, government grants are small. Second, it is impossible to convince donors that a significant portion of their donations should go to staff salaries, she said.

Club Rainbow president Gregory Vijayendran agreed that the charity sector is lagging behind the private sector.

He said an executive director in his organisation gets about $4,000 a month, but in a multinational corporation, an executive director could get at least $8,000. So the gap is there.

And that is not counting career progression and other perks offered by the private sector, he added.

The charity is relooking staff pay. One option is to pay bigger bonuses to those who excel in their work.

But while it is time to do something, the dilemma is how to balance the needs of beneficiaries and staff, along with donors' expectations, said Mr Vijayendran.

Ms Poh put it this way: 'I would love to pay my staff more. But it is easier said than done.'

weichean@sph.com.sg