It also reduces corruption. One of the things Singapore did was to pay top salaries to government employees. Like others have pointed out, many times people se

It also reduces corruption. One of the things Singapore did was to pay top salaries to government employees. Like others have pointed out, many times people see the government job as a stepping stone to a cushy private job where they will make the real money. Thus, government employees treat the big companies with kid gloves because they don’t want to jeopardize future employment. If instead, the government job actually paid a competitive salary, they would be more focused on their current position and not trying to make sure they kept their future private employers happy.