The total salaries at the ministerial grade (MR4), will fall by 20 per cent to $1.54 million, while the pay at the SR9 level (entry superscale grade) will fall by 12 per cent to $351,000 a year, compared to 2008.

The government estimated last year's growth to be 1.5 per cent.

Giving the revised salary for political, judicial and statutory appointment holders and administrative officers, Defence Minister Teo Chee Hean, who is also in charge of the Civil Service, said in Parliament on Monday: 'The 2009 salaries are projected salaries.

'As the salaries are linked to economic performance, the 2009 salaries may be subject to further adjustments given the volatility of the economy.'

Replying to a question from a backbencher, Mr Teo said the total annual remuneration for ministers and top civil servants was $1.92 million in 2008, which included the individual performance bonus and all other bonuses for a typical officer.

The norm total remuneration for those pegged to the SR9 benchmark was $398,000.

'At these senior levels, a significant proportion of the total annual salary depends on the individual's performance and the performance of the economy,' Mr Teo said.

For an officer in the MR4 grade, the individual performance bonus quantum can range from zero to 14 months.

'However, the actual amount awarded would vary with the officer's performance,' said Mr Teo.

'In 2008 the actual performance bonus paid out for this grade ranged from six to 10 months, with an average payout of 8.33 months, or $455,000.

'For SR9 the individual performance bonus quantum can range from 0 to 8.5 months, with 4.5 months used for computing the 2008 norm salary for a typical officer.

'In 2008 the actual performance bonus ranged from zero to 6.5 months, with an average payout of 4.82 months, or $86,000.'

Singapore is scheduled to unveil more measures on Thursday to help companies cope with the deepening global slump, which caused exports to contract in 2008 by the most in seven years. The National Wages Council last week advised employers to freeze or cut pay rather than fire workers.

Job losses may reach the levels recorded in 1998 during the Asian financial crisis and 3,300 workers may be fired in the coming months, Minister of State for Manpower Gan Kim Yong said in Parliament on Monday.

About 4,800 people were retrenched in the fourth quarter based on early notifications, he said.

The seasonally adjusted unemployment rate was 2.2 per cent as of September. Employers cut 6,418 jobs in the first nine months of 2008, the Ministry of Manpower said last month.

Little can be done to mitigate the current downturn, which has spread to all parts of the economy, Trade Minister Lim Hng Kiang said in Parliament earlier on Monday. The nation is facing unprecedented conditions in this 'sharp' recession, he said.

Consumer Sentiment Consumer sentiment will weaken as the nation's manufacturing and financial industries slump further, Mr Lim said.

Construction and healthcare companies will generate jobs as those industries are still growing, the minister said.

Investment in manufacturing and services will fall this year as demand weakens and companies face difficulty in securing funds, the Economic Development Board said earlier today.

The government will focus on easing lending to companies as loans may decline in the coming months with banks turning more cautious, Mr Lim said.

Singapore's banks are not facing a liquidity crunch and the financial system remains 'fundamentally sound', he said.

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