新加坡总理吴作栋理国庆群众大会演讲

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名人演讲稿

WhentheSingaporeteamsuccessfullyclimbedMountEverest(中国称珠穆朗玛峰))in1998,Icheered.IspoketoKhooSweeChiowandhisteam-mateslater.

Theytoldmethattheyclimbedupinstages,fromBaseCamp(探险队等的营地)toCamps1,2,3and4,beforetheymadetheirassaultforthesummit.Theclimbbecamemoredifficultanddangerousthehighertheywent.Theairbecamethinnerandtheslopesteeper.Youhadtobedisciplined,determined,andwellprepared.Andyouhadtohaveluckonyourside.Therecouldbeavalanchesandrockfails,ortheweathercouldchangesuddenly.SweeChiowtoldmethatthemostimportantqualityneededtoclimbMountEverestwasmentalstrength.

TheclimbupMountEverestprovidesavividimageforSingapore''''sownclimbupthemountainofeconomicdevelopment.

SeniorMinisterbroughtSingaporeuptoCamp2--fromlabourintensivetoelectronicsandhighervalue-addedindustries.Inthelast10years,wehaveclimbedhighertoCamp3,withwaferfabs(waferfabrication的口语表达,晶体管加工),chemicals,andfinancialservices.Now,wearemakingourwaytoCamp4,todoIT,lifesciences,andotherknowledge-basedactivities.IfwemakeittoCamp4,wecanthentrytoscalethesummitwherecountriesliketheUS,JapanandSwitzerlandare.

Butletmewarnyou.AsintheMountEverestclimb,thegoingwillgettougherfromhere.Aswegohigherupthemountainofeconomicdevelopment,progresswillbeslower.Wewillnotseethesamehighgrowthratesasinthepast.Wewillhavetoworksmarterandacquiremoresophisticatedcapabilitiestoovercomecomplexchallenges.Wewillbetemptedtorelax.Indeed,someSingaporeanshaveasked:"DoweneedtobeNumberOneineverything?"Wewillneedgreatmentalstrengthtocontinuepushingourselvestoexcel.Ifwedonotdoso,othersnowbehinduswillpushusoffthetrack.

Tonight,Iwanttofocusonthisnextstageofoureconomicclimb.

THECURRENTDOWNTURN

Butfirst,letmetouchonthecurrenteconomicdownturn.

WhenImetthemediaearlierthisweek,theytoldmethatSingaporeanswouldexpectmetospeakindetailontheslowdown,andoffersolutions.

IexplainedwhyIdidnotintendtodoso.Wehavealreadydiscussedonmanyoccasionsourshort-termproblems.Iwanttodealwiththelong-termchallenges.Ofgreaterconcerntomearethefundamentalshiftsintheglobaleconomicenvironment,andthefactthatmanyofthejobswhicharelostduringthisslowdown,mightneverreturnafterrecovery.Weneedanewstrategytorespondtothesedevelopments.

Moreover,duringthe1997Asianfinancialcrisis,wehadputinplaceamajorpackageofrebatesandcost-cuttingmeasures.Partsofthisarestillineffect,includingtheCP17cut.Then,inthisyear''''sbudget,RichardHucutcorporateandpersonaltaxes,andgaverebatesonS&Ccharges,rentalsandutilitybills.Recently,GeorgeYeoannouncedanotherpackagetodealwiththecurrenteconomicslowdown.

Letmeassureyouthatiftheslowdowndragson,wehavethemeansandabilitytodomoretohelpyou.Andwewillhelpyou.MyMinistersandIarewatchingtheeconomyveryclosely.Weareworkingoutpossibleadditionalmeasures,justincasetheeconomycontinuestoworsenandweneedtoadministerasecondpackage.

Ourcurrentproblemistheconsequenceofbeingasmall,openeconomy,highlydependentonexternaltradeandforeigninvestment.WhentheUSandothermajoreconomiesweregrowing,wecaughtthestrongwindsandsurgedahead.Nowthatthewindshavedied,ourgrowthhasslowedtoalmostastandstill.Wedonothavealargedomesticmarkettogoagainstchangesinthewindintheexternalenvironment.Wejusthavetocopewiththem.WhattheGovernmentcando,however,istomakesurethattheeconomystayscompetitiveoverthelongterm,andsoftentheimpactofdownturnsonbusinessesandworkersthroughcost-cuttingmeasuresandrebates.

Wearedoingtherightthings,Inarecentsurveyof12AsiancountriesbyPERC,aHongKong-basedrisk-analysisconsultancy,Singaporerankednumberoneforqualityofgovernmentpolicies.PERCreportedthat:"Singaporeisaposter-boyofhowtopursueeconomicdevelopment...NowthattheeconomyisslowinginresponsetothedownturninelectronicexportstotheUS,the(Singapore)governmentiscomingupwithnewmeasurestobolstergrowth.Yetitisnotpanicking,norisitradicallychangingotherpoliciesthathavebeenasourceofstabilityandfortifiedinvestorconfidence."(AsianIntelligence,July25,2001)

Sodonotloseconfidence.Donotwalkaroundwithyourhead~aningsolow,asifwehavebeendiagnosedwithagravecondition.Wemightbealittleoutofsorts,butitisnotlife-threatening.Whentheglobaleconomyrecovers,sowillwe.Weshouldthereforekeepourspiritsup,andfightoffanygloom.Thereisabiggerbattleafterthis.Wecansucceedonlyifourmoraleishigh.

THELASTTENYEARS

Letusplanthenextstageofoureconomicclimbevenaswedealwiththecurrentslowdown.

Ihadearliergiventhemediaabookletontheprogresswemadeinthe1990s.Acopyhasalsobeengiventoyou.

Thisrecordofourachievementssetsthecurrentdownturninperspective.Thelastfewyearshavebeenvolatile--goodgrowthin1997,sharpdownturnin1998,recoveryin1999,10percentgrowthin2000,andnowanotherdownturn.Buttakingalongerviewoverthelastdecade,wehavemadeconsiderableprogress.

Thisshouldgiveustheconfidencethatwecanclimbhigher.Wehavestrongfundamentals.WehaveatestedteamofexperiencedMinisters,MPs,grassrootsandunionleaders,andcivilservants.Wehavecapablepeopleintheprivatesectorandaunitedpopulation.Andwehavetheresourcestoinvestinnewventuresandcapabilities.

Oureconomygrewfasterinthe90sthaninthe80s,despitethe1997Asianfinancialcrisis(7.7%perannum,asagainst7.3%).Iwasalsoquietlysatisfiedthatwerealisedourvisionofreachingthe1984Swissstandardoflivinglastyear.In1984,wehadsetthisasatargettobeachievedby1999,butwemisseditbyoneyearbecauseofthecrisis.

TheGovernmentdistributedbacktoSingaporeansagoodpartofthewealthgeneratedfromthisstrongeconomicgrowth.Wesharedcloseto$14billionthroughasset-enhancementprogrammesandendowmentfunds.Weinvestedinbetterhealthcare,housingandeducation.Singaporeans''''standardoflivingwentupconsiderably.

Wealsolivenedupthearts,culturalandleisurescene.Twoyearsago,Timemagazinedescribedourcitylifeas"funky".Morerecently,Australia''''sCanberraTimessaidthatSingaporewas"hip"and"cool".

Ahh!Now,weevenhavefoamparties!1thoughtfoampartieswereforchildren,but1sawpicturesofadultsenjoyingthemselvestoo.Thatisallright,solongasthemerry-makersprancearoundwiththelightsandtheirclotheson.

Fortunately,wealsohavehigh-browedstufflikeplays,balletsandmusicals.Tonight''''sRallyisheldhereinsteadoftheusualKallangTheatrebecauseIgavewayto"MissSaigon".

BUTTHEREAREGAPS

However,therewerealsoareaswherewecouldhavedonebetter.Iwillmentiononlytwo,justtoremindSingaporeansnottobecomplacent.

Ourservicestandardscanbeimproved.Ournewspaperscarrymanycomplaintsofpoorserviceinourshopsandrestaurants,bytaxi-drivers,andeveninourhospitalsandbanks.

Wecanalsobemoregraciousandconsiderate,athomeandinothercountries.

Forexample,someJohoreanshavedescribedChineseSingaporeansas"haolian"or"show-offs".TheyclaimthatSingaporeanslovetospeedandbeattrafficlightswheninMalaysia;behaveasiftheyare"ABC"or"American-bornChinese";andlovetoshout"verycheap,verycheap!"whileshopping.

Iwouldaddthatwearetoo''''kiasu''''.Forexample,atbuffets,wepileoystersonourplatesashighasMountEverest.

Ithinkourlessthangraciousbehaviourisbecausewehavebecomeaffluenttooquickly.Oursocialgraceshavenotkeptpacewithourmaterialprogress.Letusbehumble,courteous,andgraciousinourbehaviourandattitude.Letusmakefriendswithourneighbours,especiallyJohoreans.

MORECHALLENGINGENVIRONMENTAHEAD

Thenexttenyearswillbetougherthanthelastten.

Ouroperatingenvironmenthaschangedtremendously.Wearenowinanewphaseofglobaldevelopment.Thereisonlyonepre-eminentworldpower-theUS.Nevertheless,theUScannotignoretherapidemergenceofChina.

US-CHINARELATIONS

Indeed,theUS-Chinarelationshipwillbethedefiningfactoringlobaleconomicsandpoliticsinthecomingdecades.Ifitgoeswrong,Asiawillsuffer.TheUSseestremendousopportunitiesinChina''''seconomicgrowth,butatthesametime,itworriesoverChina''''sgrowingpower.

HowUS-Chinarelationswillevolveisstilltooearlytosay.PresidentGeorgeW.BushspoketoPresidentJiangZemingonthetelephonerecently.AccordingtoPresidentJiang,"AlthoughitwasnotavideophonewhereIcouldseehisfacialexpression,fromhisvoice,IcouldfeelthathewasaPresidentwecandobusinesswith."IhopethatwhenthetwoPresidentsmeetinBeijinginOctober,andseeeachother''''sfacialexpressions,theywillfindthattheycandobusinesswitheachother.

EASTASIA

WithinEastAsia,thereareotherflashpoints.Cross-straitrelationsbetweenChinaandTaiwanaretroubled.ThemomentumofreconciliationbetweenthetwoKoreashavesloweddown.IntheSouthChinaSea,severalcountriesclaimtheatollsandreefsthere.Ifthisleadstoconflict,sealanesofcommunicationsandinternationaltradewillbedisrupted,affectingus.

Theoutlookforourimmediateneighbourhoodalsoremainsuncertain.

IndonesiahasjustelectedanewPresident,thethirdinthreeyearssinceSuhartosteppeddownin1998.

PresidentMegawattiinheritsacountryinwhichpartsarethreateningtobreakaway,andtheeconomyisinagravestate.Indonesiawilltakemanyyearstorecover.

TheMalaysianeconomybouncedbackbrieflyafterthe1997Asianfinancialcrisis.However,internationalinvestorsremainwary.

OthercountriesinAseanarealsofacingvariousdifficulties.

Asaresult,Aseanisatalowpoint.Investorsarenegativeabouttheregion''''sprospects.

Singaporewillfeelkeenlytheeffectofthisuncertaintyintheregion.

THECHINACHALLENGE

Moreover,oureconomyisuncomfortablysandwichedbetweenthedevelopinganddevelopedeconomies.

Manydevelopingeconomiesarefastcatchingupwithusintechnologicalcapability.What''''smore,theyhavemuchlowercostsofproduction.Forexample,ourwagesformanufacturingworkersaremorethan12timesthatinChinaandIndia.OurindustriallandcostsaboutUS$300persquaremetre.InShenzhen,itcostsbelowUS$10.Fortunately,wearenolongercompetinginlow-endmanufacturing,wherelowwagesandlowlandpricesarecritical.

Butstill,Chinaposesabigeconomicchallenge.SomeeconomistsdescribeChinaasan"800-poundtradinggorilla".AHongkongnewspaperaddedthatthisgorillawas"veryhungry".

Intheearly90s,Chinatook20%ofthetotalforeigndirectinvestmentintoEastAsia(excludingJapan),whileAseanabsorbed50%.Today,thenumbersarereversed:Chinatakesin50%andAsean20%.Chinaisnowdubbedthe"subcontractoroftheworld".

EvenIndiaisbeingfloodedwithcheapbutgoodqualityChinesegoods.SomeIndianmanufacturersarefindingithardtocompete.Sotheyhavedonethenextbestthing.Theystick"MadeinChina"labelsontheirproductstoboostsales.

ButChinawillsoonbemorethanasub-contractor.AJulyarticleinAsiaweekcommentedthat:"It''''snotaboutcheapstuffanymore.FromPCstochipstosoftware,(China)isbecominganITpowerhouse."

ManyTaiwanesecompaniesareinvestingheavilyinChina,notjustinlow-endactivities,butalsohightechplantslikewaferfabs.ThecompaniesareshiftingtheiractivitiesoutofTaiwanintoChina.Thereare200,000TaiwanesebusinessmeninShanghaiandanother200,000inKunshannearSuzhou.TheTaiwaneseworrythattheirmanufacturingindustryisbeinghollowedout.

RichardLimwroteaninterestingarticle,entitled"AWake-upCallfromChina",intheSundayTimesof22July.HehasbeentoChinaseveraltimesovermanyyears.HefoundChina''''stransformationtobe:

"Alarming,becauseChina''''stransformationwillimpactgreatlyonSingapore,especiallyonthelivelihoodsofitslesswell-educatedcitizens."

Hethenurgedthat:

"Thepeoplemustbemadeawareofwhatishappening,becausetheirfuture,ortheirchildren''''s,isatstake."

RichardLim''''sarticleattractedseveralletters.Manyreadersagreedwithhim.

Iwas,however,morethanalittlesadtoreadtheresponseofayoungreader,probablywestern-educatedandhadneverbeentoChina.Herevealedthathehaddraftedhisresponsewithinputsfromafewotherslikehimself,all20-somethings.Hewrote:

"WedonotfeelanyaffinitytotheChinesepeople...Thecheenapeoplearesuckingawayalltheforeigninvestmentsandalongwiththem,ourjobs...Wereallycannotimagineaworldwiththecheenapeopleincharge.

ThecheenapeopleworkinginSingaporearereallysuchacrudelot."

HeendedsarcasticallybyaskingRichardLimtoconsidermigratingtoChina.

Thisyoungmanisunabletoseebeyondhisnose.Heneedstogrowup,andquicklytoo.PerhapshedoesnotknowthatChinesearecalled"OrangCina"inMalay.IfwearenotCina,whatarewe?"AngMoh"?

IhavebeentoChinamanytimes,thefirsttimein1971.IhaveseenChina''''stransformationatclosequarters.Itisscary.YougotoBeijing,Shanghai,Shenzhen,Dalian,Qingdaoandscoresofothercities,andyouwillbeastonishedbyhowquicklytheyhavelearntandcaughtup.TheywritesoftwaresforMicrosoft.Theyareintolifesciencesandbiomedicalengineering.Theyhaveevensucceededinmakingtheirtoiletsattouristattractionsshinierandcleanerthanours.

OurbiggestchallengeisthereforetosecureanicheforourselvesasChinaswampstheworldwithherhighqualitybutcheaperproducts.China''''seconomyispotentiallytentimesthesizeofJapan''''s.Justaskyourself:howdoesSingaporecompeteagainsttenpostwarJapans,allindustrialisingandexportingtotheworldatthesametime?

IdonotmeanthatChinawilloverpowereveryothereconomy,andgrowattheexpenseofeverybodyelse.AsChinadevelopsandexportsmore,itsimportswillgrowtoo.TherewillbemanyopportunitiesforothercountriestotradewithChina,andforforeigncompaniestoinvestinChina.Wemustgrasptheseopportunities.

Butmanyofthethingswearenowdoing,intime,Chinawilldobetterandcheaper.Wewillhavetostayonestepahead,andmoveontonewactivities.

Singaporehasawindowofabouttenyearstomakethistransformation,andupgradetothenextlevelofeconomicdevelopment.Butaswedoso,wecompetehead-onwiththedevelopedeconomies.Wehavetomatchtheirlevelofinnovative,scientific,technologicalandmanagerialcapability.

VISIONFORSINGAPORE

Wewillneednewenergy,aclearsenseofdirection,aNewSingapore,tocompeteinthisnewenvironment.

MyvisionistoturnSingaporeintoaglobalcity,a''''globapolis'''',withpeoplefromallovertheworldandwellconnectedtoallpartsoftheglobe-byair,sea,telecommunicationsandtheInternet,inmarketaccessandinvestments,andinareassuchaseducation,sportsandthearts.

InNewSingapore,therewillbeabundantopportunitiesforSingaporeansandglobaltalenttoworkanddowell.Ourlimitedphysicalandmarketsizewillnotconstrainus,forwewouldhaveexpandedoureconomicspacebeyondourshores.

NewSingaporewillbeoneoftheworld''''sfinest,mostliveablecities.Arts,theatres,museums,musicandsportswillflourish.Singaporewillbealivelyandexcitingplace,withplentytodoandexperience.Ourcitywillnotonlyhavedepth,butalsotherichnessofdiversity.

Butaboveall,SingaporewillbeahomeforSingaporeans.Itwillbethebesthomeforustoraiseourchildren,awarmandsafehomewithagoodheartandsoundvalues,andwherestrongbondsuniteusasonefamily.

HOWDOWEGETTHERE?

TocreatethisNewSingapore,wewillimplementaneweconomicstrategyandforgeanewsocialcompact.Theneweconomicstrategywillenableustodevelopnewbasesofgrowth.Thenewsocialcompact-anunderstandingamongallSihgaporeans,andbetweentheGovernmentandpeople-willensurethatwestayacohesivenationevenaseconomiccompetitionintensifiesandtheincomegapwidens.

InthisprocessofgettingtotheNewSingapore,wewillhavetodiscardmindsetsandoldwaysofdoingthingsthathavebecomeirrelevant.Wewillhavetolearnnewcompetencies.

Butthisiseasiersaidthandone

Forexample,1knowmanyteachersintheir50swhohavechosentoretireearly.Iftheyhadstayedon,theywouldhavehadtolearnmanynewthings.Theywouldhavehadtochange30yearsofteachingmaterials,methodsandroutinesfornewones.Theywouldhavehadtostrugglewiththeircomputers,andsometimes,gethelpfromthestudentstheyaresupposedtoteach.Theyfoundsuchchangestressful.Sotheychosetogetoffthetreadmill.

Asindividuals,theycouldretire.Butanentirecountrycannotquit.Wehavenochoicebuttorunatthehighspeedoftheglobaleconomictreadmill.Otherwise,wewillbethrownoff,andallSingaporeanswillsuffer.

NEWECONOMICSTRATEGY

Singapore''''sgrowthuptonowhasprimarilybeeninvestment-driven.Thishastakenourprosperitytoanextraordinarylevel.Butlookingintothefuture,therearelimitstohowmuchmorewecanrelyonsuchastrategy.

First,ourwagesandrentalsarealreadyhigherthanthoseinothercountriescompetingforthesameinvestments.

Secondly,thereisanimbalancebetweenourexportsector,drivenmainlybyMNCs,andourdomesticsector.Ourexportsectoriscompetitive,butourdomesticsectorisnot.

Thirdly,ourexportsaredominatedbyoneindustry-electronics.Thismakesusvulnerabletochangesinexternaldemand.

Fourthly,ourimmediateregionisinastateofflux,andwillremainsoforsomeyears.

Weneedtorespondtothesechallenges.Tonight,Iwouldliketooutlinefivekeythruststhatwillpropelourneweconomicstrategy.

First,beglobal.Reachouttonewmarketsinourregionandbeyond.

Next,createanenterprisingSingapore.WeneedmoreSingaporeanstostrikeoutinbusiness,andbemorereadytotakerisks.

Thirdly,bemoreinnovative.Weshouldlookforourownideas,ratherthanmerelycopyingtheideasofothers.

Fourthly,restructureoureconomy,tomakeourexportanddomesticsectorsmorecompetitive.

Andlast,enlargeourpoolofhumancapitalandraiseitsquality.

REACHINGOUT

First,reachingouttonewmarkets.

7-HOURHINTERLAND

TheAseanregionisimportanttous,especiallyMalaysiaandIndonesia.Butweshouldnowwidenourhinterland,tobuildupSingaporeasahubforthegreaterAsianregion.

Withina7~hourflightradiusofSingaporelive2.8billionpeople,withhundredsofmillionsinthemiddleincomegroup.Wehaveonlyourselvestoblameifwedonotfullyexploittheseopportunities.Weshouldregardallthecountriesandcitieswhicharewithin7hoursofflyingtimefromSingaporeasourhinterland.

Chinaiswithinthisgreaterhinterland.SoisIndia,whichalsooffersusgoodgrowthopportunities.Indiaisopeningup,thoughnotasspectacularlyasChina.ItsITindustryespeciallyhasdevelopedremarkablyinthelastfewyears.IndianslivingabroadarebeginningtoreturntoIndia,tostartupcompaniesthere.

FREETRADEAGREEMENTS

OurFreeTradeAgreementorFTAstrategyispartofoureffortstoexpandoureconomicspace.Lastyear,weconcludedanFTAwithNewZealand.WearenownegotiatingFTAswiththeUS,JapanandAustralia,amongothers.

FTAsopenupforeignmarketstocompaniesinSingapore.Thiswillbenefitourcompanies,whichmustexporttogrow.FTAswillalsoattractmoreinvestmentstoSingapore,becausefactoriesinSingaporewillbeassuredofenhancedaccesstoimportantmarketsliketheUSandJapan.ThismeansmoreandbetterjobsforSingaporeans.

Inthelastfewmonths,theMalaysianmediahasportrayedourFTAsas"TrojanHorses"thatprovide"backdoor"entryforgoodsfromourFTApartnerstoentertheAseanmarket,throughtheAseanFreeTradeAreaorAFTA.

OurFTAscannotbea"backdoor".Indeed,ifitwerepossibleforothercountriestouseSingapore''''sFTAsasa"backdoor"toentertheAseanmarket,thenMalaysiacouldusethesame"backdoor"toenterthemarketsofourFTApartnerssuchastheUSandJapan!ButtherulesoforiginofAFTAandourFTAswillnotallowthis.

ENTERPRISINGSINGAPORE

Thesecondthrustofourneweconomicstrategyisenterprise.

Inthepast,weboughtandsoldotherpeople''''sproducts.Later,weaddedvaluetothesegoods.ThenweattractedMNCstomanufacturehere.

Inthenextphaseofourdevelopment,Singaporeanshavetobemoreentrepreneurial.Weneedtogrowagroupoflocalcompaniesthatcangointernational,tobecomeinternationalSingaporecompaniesorISCs.TheywillbasetheircorecapabilitiesinSingaporeandexpandoutside.Theywillbeanotherengineofgrowthforoureconomy,supplementingourforeignMNCstrategy.IknowwewillnothavemanycompanieslikeSingaporeAirlines,butwecanhaveafewmorelikeCreativeTechnologyorPSA.

DEVELOPINGSINGAPOREENTERPRISES

WehavesomelocalcompanieswiththepotentialtobecomeISCs,butwewillneedmore.

KwekLengBeng

KwekLengBengoftheHongLeongGrouphasturnedhisfamily-runcompanyintoasuccessful,professionallymanagedISC.Hishotelsubsidiaryownsoroperatesaportfolioof110hotelswithatotalof30,000rooms,spanningAsia,Australia,NewZealand,EuropeandtheUS.

LengBengisenterprising.WhenIwasinLondonrecently,heinvitedmetolunchathisabout-to-be-openedrestaurantinoneofhishotels.HerecountedthegreattroublehehadtakentopersuadeaJapanese-AustraliancheffromSydneytosetupthisrestaurant.Apparently,thechef''''sSydneyrestaurantisverypopular.Youhavetobookatabletwotothreemonthsahead.LengBengspenttwoyearswooingthechefbeforesucceeding.Manyothersuitorshadfailed.

Thechefisveryparticular.Everythingmustbeexactlyright.HedelayedtheopeningofLengBeng''''srestaurantbymorethanamonthbecausehewasnothappywiththedecorandservice.Heevencheckedthetoiletsandfoundthemnotuptohisstandard.LengBenghadtoredothedecorandthetoilets.

ThechefservesFrench-Japanesefusioncuisine.Wehadeightcourses.Eachdishwasexquisite,beautifullypresentedanduniquelyflavoured.Aftertheeightcoursesthough,1didnotfeelfulllikeIwouldafteraChinesemeal.WhenIdescribedmyexperiencetomyPrincipalPrivateSecretary,hesaid,"Ah,theFrenchcallit,''''MenuDegustation''''."HehadstudiedinFrance.Heexplainedthata''''MenuDegustation''''wastoallowyoutoenjoydifferentflavoursandstylesofpreparationofmanysmalldishes,andnottostuffyou.

SamGoi

SamGoiofTeeYihJiaisanotherenterprisingSingaporean.TeeYihJiaistheworld''''sleadingproducerofpopiahskins,andhasthepotentialtobecomeanISC.Popiahskinsmaynotseemaglamorouslineofbusinesstosomeofyou,butIamproudoftheinroadsSamhasmadeintheinternationalmarket.Itcouldbethestartofsomethingmuchbigger.

Frompopiahskins,Samwentontoproducerotiprata.1wassurprisedtolearnthathisrotipratasoldbetterinthewestthanintheeast.Somehow,hehasmanagedtopersuadeAmericansandEuropeanstoeatthem,notwithcurry,butwithchickenandsaladlikeMexicantortillas.TortillasarelikeChinesespringrolls.Samdidnotstopthere.Hewentontoidentifyasuitablefryingpanfortherotiprata.Nowhesellsbothrotiprataandrotipratafryingpans.

SamwasinmydelegationtotheCzechRepublic.IteasedhimwhetherhehadsoldanypopiahskinsandrotipratatotheCzechs.Helaughed.Hewasnottryingtosellthemany.Instead,hewastheretorecruitamasterbeerbrewer.1didnotknowthathehadgoneintothebeerbusinessandthatheownedabreweryinChina.SamexplainedthattheCzechswerefamousfortheirbeers,particularlyPilsnerbeer.Theyhaveverygoodbrewers.SamdidfindamasterbrewerandwasabletopersuadethebrewertogotoChinatorunhisbrewery.

WeneedmoreSamGoisandKwekLengBengs.

GOVERNMENT''''SROLEINENTERPRISINGSINGAPORE

MTIisre-engineeringTDBtowidenitsfocus,frompromotingtradetohelpingSingapore-basedcompaniesinternationaliseandgrowintheglobalmarket.Inshort,TDBwillfocusongrowingSingapore''''sexternalwing.

Thatsaid,let''''smakethisclear.TheGovernmentcanhelp,andcancreateanenvironmentthatisconducivetobusinessandenterprise.Butitcannotcreatesuccessfulbusinessesbydecree.Indeed,topromoteenterprise,theGovernmentshouldinterveneless,notmore,inthemarket.AbusinesswhichdependsontheGovernmenttoprotectitsmarketorsubsidiseitsoperations,cannotbeviableinthelongrun.Asuccessfulbusinesshastoflourishinafreemarket.Itmustmakeagenuineprofitbybeingmoreefficientandinnovativethanitscompetitors,andbyproducingsomethingwhichitscustomersneed,betterandcheaperthanothers.

ARISK-TAKINGCULTURE

Ultimately,howsuccessfulweareincreatinganenterprisingSingaporewilldependontherisk-takingprofileofSingaporeans.

RewardsforSuccess

Thewillingnesstotakerisksdependsontheeconomicandsocialenvironment.Weshouldstrengthentheincentivesforpeopletoventureforthinthehopeofspectacularsuccess,ratherthantochooseasafepathandminimisetheriskoffailure.Singaporeanshavetodiscardthemindsetofseekingsecurejobs.Instead,weshouldalsocelebratethosewhohavethegumptiontotrytheirhandsatbusiness.

Weneedtoincreasetherewardsforsuccess.Akeyrequirementistokeepourtaxratesaslowaspossible.OnereasontheUShasamoreentrepreneurialculturethanEuropeisthatitstaxratesarelower,soitspeoplewhobuildcompanieshavemorehopetobecomebillionaires.InEurope,ifyourbusinessprospers,40%ormoreofthewealththatyoucreategoestothestateintaxes.Sotheincentivetotakerisksandsloghardtobuildacompanyisweaker.

CelebratingSuccess

Socialattitudestoo,affecthowwillingSingaporeansaretotakerisks.Weshouldnotresentbusinessmenwhomakeitbig.ThisisanotherdifferencebetweentheUSandEurope.InsomeEuropeancountrieswithstrongegalitarianvalues,apersonwhobecomesveryrichisfrowneduponbysociety,evenifhehasmadehismoneyhonestly.ButintheUS,SteveJobsandBillGatesarefolkheroes.SingaporeisamoreegalitariansocietythantheUS.Butwetooshouldcheeronourentrepreneurs,sothattheywillcreatemorewealthforthemselvesandforSingapore.

AcceptingFailure

Wehavetochangeanotherattitude.Wefindithardtoacceptfailure.Wedonotgiveenoughcredittothosewhotry,failandgetuptotryagain.Weshouldnotlookatthisintermsofforgivenessandtolerance,butintermsofadmirationandrespectforriskandenterprise,andresilienceandtenacityinthefaceofadversityandfailure.Perhapsbecauseofourdoggedpursuitofexcellence,orbecausewearesuchasmallsocietythateveryoneknowseveryoneelse,somebodywhohasfailedfindsitdifficulttostartafresh.Butwhateverthereason,wemustgiveasecond,athirdandfurtherchancetothosewhohavefailed,provideditwasanhonestfailure.

INNOVATION

Weneedalsotofosteracultureofinnovation.Thisisthethirdlegofourneweconomicstrategy.Efficiencyisimportant.Butitcanbeeasilymatchedbyothers,anddoesnotprovideasustainedadvantageincompetitiveness.Intheglobalisedeconomythatpermitsrapidspreadoftechnologyatlowcost,efficiencyisonlyanentry-levelrequirement.Innovationandimaginationgiveaneconomyoracompanythatextraedge.Today,wealthisgeneratedbynewideas,morethanbyimprovingtheideasofothers.

SporadicinnovationbyafewSingaporecompaniesandthepublicsectorisnotgoodenough.Theinnovativespiritmustpermeateourwholesociety.Thequestionishowtocreateanenvironmentthatencouragesmanyofustobecomeinnovators.

Byinnovators,Imeanapeoplewhosemindsarealwayslookingfornewideasandnewwaysofdoingthings,notsimplycopyingwhatothershaveinvented.Forthis,weneednon-conformistthinking.

Letmegiveyouanexampleofnon-conformistthinking.IhappenedtotuneintotheBBContheeveofNationalDay.TherewasaninterviewwithaformerAmerican-ChineseTVpresenterturnedentrepreneur.

ThisladyentrepreneurhasproducedarangeofcosmeticproductstailoredforAsianwomen.SheexplainedthatAsianwomenhavedifferentfeaturesanddifferentskincolouring,socosmeticsmeantforCaucasianwomendonotsuitthem.Forexample,whenAsianwomenuseapink-basedfoundation,theylookasiftheyarewearingamask.Also,Caucasianwomengenerallyhavemoreprominentnoses,sotheircosmeticsseektomaketheirnoseslessprominent.Ontheotherhand,Asianwomengenerallyhavesmallnoses,sotheyneedtousecosmeticstomaketheirnosesmoreprominent.Otherwise,shesaid,''''Youwouldnotevenseeanoseontheirface!''''

Thiswomandidnotsimplycopyothers.Aconformistwouldhavedonethat,andsimplymanufacturedandsoldwestern-basedcosmeticsintheAsianmarket.Instead,shethoughtout-of-thebox,hopingtohitthejackpot.

IamalsoimpressedbytheinnovativespiritofourNationalLibrary.Itcollaboratedwiththeprivatesectortodesignanddevelopasystemtotrackthemovementoflibrarybooks,soastocutdownthetimevisitorsspendqueuingtocheckinandcheckoutbooks.Thebooksareimplantedwithamicrochipwhichemitsradiowaves.Toborrowabook,youputitonapadattheself-checkmachines,andthebookisregisteredasborrowed.Therearehardlyanymorequeues.Returningthebookisalsoabreeze.Yousimplyslidethebookdownabook-dropchute,anditisregisteredasreturned.

OurNationalLibrarywasthefirstlibraryintheworldtousethistechnology.Ithaspatentedtheinvention.

NATIONALINNOVATIONCOUNCIL

Ironically,tochangemindsetsinoursociety,atop-downapproachseemsunavoidable.ButIamclearinmymindthattheGovernmentcanonlystimulateandencourageyoutobeinnovative.Itisnotpossibletodirectanddrivethepopulationtobecomeinnovative.

Earlierthisyear,IinvitedProfessorGaryHamel,amanagementconsultant,toconductaseminaroninnovationforMinistersandtopcivilservants.Theseminarhasgeneratedsomegoodideasonhowwecanencourageamoreinnovativesociety.

IintendtosetupaNationalInnovationCounciltopushalongthischangeinthethinkingofourpeople.LimHngKiang,whoismakingseveralinnovativechangesintheHealthMinistry,willchairthisCouncil.

STRUCTURALADJUSTMENT

Ourfourththrustistomakefurtherstructuraladjustmentstooureconomy.

OPENINGUP

Ihavemetpeoplewhohavebeenpersonallyaffectedbyoureconomicrestructuring.Somearefriendsandrelatives.Remisiers''''commissionshavebeencut.Banktellersarecompetingwithinsuranceagentstosellinsurancepoliciesandunittrusts.Manybankemployeesarefearfulofbeingretrenchedbecauseofbanksmerging.

Iunderstandyourdistressoverthedismantlingofprotectiveregimes.ButIhopeyouwillunderstandthattheGovernmenthastolookatthelargerpicture.Wehavetoconsiderthetectonicchangesunderway,andworkoutastrategicresponsetosecurethelong-termprosperityofSingaporeans.

Thestatusquoisnotsustainable.EveniftheGovernmentdoesnothing,themarketwilleventuallybringaboutpainfulchanges.Wecandelaytheadjustment,butthefinalresultwillbeworse.Itisfarbetterforustoacceptrealityandgowiththeforcesofchange,andnottoresistthem.Ifyouwatchboxing,youwillknowwhatImean.Theboxerwhosticksouthisjawinsteadofrollingwiththepunchwillbeknockedoutinnotime.

EXPORTSECTOR

Torestructureoureconomy,wehavetoenhancethecompetitivenessofbothourexportsectorandourdomesticsector.

Ourexportsectorhasbeensteadilytransformedovertheyears.Wehaveshiftedtowardsnew,highervalue-addedmanufacturing,aslower-endproductionmovedoffshore.10yearsago,consumerelectronicsstillaccountedfor14%ofourelectronicsproduction.Now,itisdowntoonly2%,havingbeenreplacedbythesemiconductorindustry.Andtheremaining2%ofconsumerelectronicsisnolongerradiosorVCRs,butexcitingnewproductslikedigitalTVandDVDplayers.Soon,itwillbewirelessapplicationsthatallowyourhomeappliancestotalktooneanother.

Wemustacceleratetheupgradingofourmanufacturingsector,orwewillbehollowedout.Ourhightechindustriesmustgoevenhighertech.Forexample,wemustbeabletoproducemoresophisticatedsemiconductors,anddesignthechips.

NEWCAPABILITIES

Inaddition,wehavetobuildupnewcapabilitiesinIT,lifesciencesandotherhighvalue-addedactivities.

Lifesciences,especiallybio-medicalsciences,aresaidtobethethirdtechnologicalrevolutionafterthesteamengineandthecomputer.

Togiveyouanideaofthepotentialoflifesciences,justlookatthemanydifferentwayspeoplemakebabiesnowadays.Mostmakethemintheusualway,thewaymarriedcouplesdo.Afewmakebabiesintesttubes.Someusesurrogatemothers.Now,IreadthatAustralianresearchersaretryingtomakebabiesfromthecellsoftwowomen.Theyhaveshownthatbabymicecanbeproducedfromthecellsoffemalemicewithoutanymalecontributionwhatsoever.Iftheysucceedinapplyingthistechnologytohumans,willourwomenstillneedus?

Wemusthaveapieceoftheaction,perhapsnotinfindingnewwaysofmakingbabies,butinfindingnewcuresfordiseases.

DOMESTICSECTOR

Evenaswepromoteexports,wemustnotneglectourdomesticsector.WeshouldseehowwecanmakethedomesticsectorasefficientastheexportsectordrivenbyMNCs.Theproductivityofourdomesticsector,whetherinconstructionorretailorhospitality,islow.Thisisaseveredragonournationalproductivity.Ifyouhavevisitedthedevelopedcountries,youwouldhavenoticedtheirsuperiorservicestandardsandproductivity.Yes,thereareoutstandingexceptionsinSingaporelikeRobinsons.Buttheyaretheexceptionratherthantherule.

Yearsago,ItookataxiinParisfromtheairporttothehotel.Whenthetaxiarrivedatthehotel,thedrivergotoutandcarriedmyheavyluggageoutoftheboot.Iwasastounded.Thedriverwasawoman.

ChongLitCheong,CEOofJTC,relatedthatwhenheandhiswifewereinHongkongrecently,hiswifehadtopickupfromastore,abagshehadalreadypaidfor.Shetelephonedthestoretoaskthemtogetherbagready.Thesalesgirlnotonlygotthebagready,butwenttheextramile.ShewaitedoutsideatthetaxistandtohandthebagtoLitCheong''''swife,thussavingherthetroubleofgettingoutofthetaxi!

IwouldliketoseesuchlevelsofcustomerserviceinSingapore.

WhenProfessorMichaelPorterwashereearlierthismonth,hepointedoutthatunlessourdomesticsectorwasefficient,ouroveralleconomycouldnotachievehighproductivity.Exportbusinessesandconsumersalikewouldhavetopayhighercostsforinefficientlocalservices.HecitedJapanasanexamplewhereaweakdomesticsectorhadadverselyaffectedtheexportsector.

We,therefore,havetoopenupourservicessectorfurther,toimproveitsefficiency.Wearealreadydoingthisforfinance,telecommunicationsandpowergeneration.

Atthesametime,wewillhelpourdomesticsectortoupgrade,especiallytheSMEs.PSBhasprogrammestoimprovetheirproductivity.Forexample,foralongtime,thecleaningindustrysufferedfromlowproductivityandapoorimage.Now,PSBisworkingwiththeindustrytoupgradeskillsandperformancestandards.IthassetupaCentreforCleaningTechnology.

Thereisalsomuchroomforretailerstoupgradethemselves.RetailersshouldparticipateinPSBprogrammessuchasfranchising,economicgroupingandsharedservices.Theseprogrammeshelpthemadoptmodernmanagementpracticesandbusinessmodels.

HUMANCAPITAL

Ourhumanresourceislimited.Wehavetomaximiseourlocalpotentialandtopitupfromtheoutside.Thisisthefifththrustofournewgrowthstrategy.

EDUCATION

Atlastyear''''sRally,Ipledgedtoincreasespendingoneducationby$1.5billionayear(from3.6%ofGDPto4.5%).

Inparticular,theGovernmentwillimprovepost-secondaryeducationopportunitiesforourchildren.

First,ITEwillregroupitscurrent10campusesintothreeregionalcampusesoverthenext15years.

Thelargercampuseswillallowafullrangeofcoursestobeoffered,andprovideopportunitiesforcross-disciplinarylearning.Studentscanalsolookforwardtobettersportsandrecreationalfacilities.

Thefirstnewfullyintegratedcampuswillbereadyby2005.

Secondly,wehavedecidedtobuildafifthpolytechnic.Itwillopenitsdoorsin2003.

Thirdly,wewillbuildthreenewJuniorCollegesinthenextthreeyears.ThiswillbringthetotalnumberofJuniorCollegesto19.

Fourthly,wewillexpandtheuniversitysector.Today,oneinfivePrimaryOnestudentseventuallygoesontoalocaluniversity.Weaimtoimprovethistooneinfourby2010.Thismeansraisingthecurrentannualuniversityintakeby4,000students.

ButNUSandNTUarealreadyasbigastheyshouldbe.TheSingaporeManagementUniversity,orSMU,willincreaseitsstudentintaketillitreachesitstargetenrolment.FurtherexpansionofNUS,NTUandSMUisnotdesirable.AcommitteeheadedbyPeterChenhasofferedpreliminaryideasforafourthuniversity.Idonotwanttoprejudgeitsrecommendations,butinprinciple,Isupportafourthuniversityifitsgraduatescanmeetthestandardsdemandedbytheeconomy.

LIFELONGLEARNING

TheGovernmentwilldomoretoenhancetheskillsofordinaryworkers.

WehavedoubledtheLifelongLearningFundfrom$500millionto$1billionsinceApril.

Thisyear,theGovernmentwillgiveaddedemphasistoprogrammestohelpolderandlower-educatedworkers.

Executives,managers,engineersandotherprofessionalsmayhavetoberetrainedtoo,sothattheycanmoveintonewgrowthareas.Weshallstudyhowthiscanbedone.

GLOBALTALENT

Wecanspendmoreoneducationandtraining.Buttherealityisthatnomatterhowmuchwespend,withapopulationofjustoverthreemillion,wewillnothaveenoughlocaltalenttocompeteinthetopleagueofnations.

DidyouwatchTeamSingaporeplayManchesterUnited?Ifyoudid,youwouldhaveagoodideaofthebiggapbetweenourstandardsandinternationalstandards.TeamSingaporeplayedwellbutitwasnomatchforManUbecauseManUwasreallyaninternationalandnotaBritishteam.MahBowTantoldmethatabouthalftheManUteamwerenon-British.HeaddedthatManUwasonlyplayingathalfpace.Otherwise,thescorelinemightwellhavebeen16-l!

Arecentarticlebythenewspaper,"TheAustralian",commentedhowcorporateSingaporewascontrolledtightlybyasmallgroupofpeople.ThesamefewSingaporeansareontheboardsofmanycompaniesandGovernmentStatutoryBoards.

Thejournalistdidnotknowtherealreason.Thetruthis,wedonothaveenoughcorporatetalenttodrawon.Hence,somanydemandingjobsfallontheshouldersofthesamefewpeople.

Wehavegoodlocaltalent,butweneedtotopitupwithglobaltalent.

OthersAreRecruitingTalentToo

Wearenottheonlyonestohaveconcludedthatglobaltalentisessential.

Australiarecentlyenlargeditsimmigrationprogrammetobringinabout45,000skilledmigrantsayear.AndJapanisfinalisingablueprinttoimportatleast30,000ITprofessionalsinthenextfiveyears.

TheUSeconomyhasdoneimmenselywellbecauseitenjoysa"braingain"yearafteryear.

Forexample,onequarterofthecompaniesinSiliconValleyarecreatedbyorledbyIndianandChineseimmigrants.Also,since1945,theUShaswon60%(228)ofalltheNobelPrizesineconomicsandthesciences.Atleast30%oftheseeconomistsandscientistswerebornoutsidetheUS.

AttractingMulti-NationalTalent

Thatiswhywehavetobringinmulti-nationaltalent,likethewaywebroughtinMNCs.

LikeMNCs,multi-nationaltalent,orMNTs,willbringinnewexpertise,freshideasandglobalconnectionsandperspectives.IbelievethattheywillproducelastingbenefitsforSingapore.

ThecompetitionforMNTsisintense.JustasweuseincentivestoattractMNCs,wemayneedtoconsiderspecialmeasurestoattractMNTs.

RetainingSingaporeTalent

Butthewarfortalentisnotjustaboutattractingforeigners.Retainingourowntalentisgoingtoproveabigchallenge.BrightSingaporeansarebeingharvestedbyothersevenbeforetheygraduate.

YeoCheowTongtoldmethatJPMorgan,aleadingWallStreetinvestmentbank,recruitedhisdaughterbeforesheevenstartedherfinalyearinatopUSuniversity.Uponjoiningthebankaftergraduation,shewasassignedtoacorporatefinanceteamthatexecutesbillion-dollarprojects.Apartfromthepay,suchafirstjobexcitedandchallengedher.

IaskedCheowTongwhetherhisdaughterwouldcomebacktoSingapore.Hecouldonlysay,"Ihopeso."Ihopesotoo.

IhopethedaughterofMrAbdulRashidGani,ManagingPartnerinthelawfirmofKhattarWong&Partners,willcomebacktoo.ShewasoneofthetopstudentsinCornellUniversity.Duringherfinalyear,threetopfinancialinstitutionsinNewYorkwooedher.TheyflewhertoNewYork,putherupinfirstclasshotelsandtookherouttofinerestaurants.SheisnowworkingforCreditSuisseFirstBostoninNewYork.

GreenharvestingofbrightstudentsisacommonpracticeinAmerica.Itshowshowhardtopcompaniestrytorecruittoptalent.WemaylosemanySingaporeansthisway.

Othersmallcountriesfacesimilarproblemsretainingtalent.NewZealandisagoodexample.ManyNewZealandersworkoverseas,inAustralia,BritainortheUS.SomanyNewZealandershaveemigratedthatnewspaperswriteabout"theflightoftheKiwis",eventhoughKiwiscannotfly.

Recently,aneminentprofessorfromtheLondonSchoolofEconomics,ProfessorRobertWade,spokeataconferenceinAuckland.Hesaid:

"Onceathresholddensityofskilledpeopleislost,therateofout-migrationislikelytoaccelerate,companiesandorganisationswillhaveincreasingtroublemeetingstaffingneeds,thequalityofpublicserviceswilldecline,thetaxbasewillerode,andsoon."

ProfessorWadealsospokeofhowoverseasTaiwaneseandKoreansareofferedconsiderableincentivesandsubsidiesbytheirgovernmentstoreturnhome.EvenChinaisnowdoingthis.HowmuchmorecriticalmustitbeforSingaporetoattracttalentfromaroundtheworldandtoretainourtalent?

Inthenextfewmonths,asoureconomyslowsdownandunemploymentincreases,someSingaporeansmayagainquestiontheneedformoreglobaltalent.Iurgeyoutounderstandthatthisisamatteroflifeanddeathforusinthelongterm.Ourowntalentisbeingcreamedoff.Ifwedonottopupourtalentpoolfromoutside,in10years''''time,manyofthehigh-valuedjobswedonowwillmigratetoChinaandelsewhere,forlackofsufficienttalenthere.SoitisbetterforustoanchortalentsandjobsinSingaore,andmakeourimportdtalentfeelwelcomeaspartoftheSingaporeteam.

SOCIALANDPOLITICALENVIRONMENT

Wewillcreateasocialandpoliticalmilieuwhichisconducivetooureffortstocreateanenterprisingandinnovativesociety.Thismeanshavingthefreedomtomakepersonalchoices,andtobedifferent.Youngpeopleespecially,oftenwanttobenon-conformist.Wecanacceptthat,withinlimitsofdecencyofdecorum.WedonotexpecteverySingaporeantodressandbehavethesame.

Beyonddressingdifferently,manySingaporeans,inparticular,theyoung,wanttohavemoresayinthewaySingaporeisrun.

Wehaveallowedfreerexpressionofdivergentpoliticalviews,solongasthisdoesnotcompromiselawandorder,nationalsecurityandnationalinterests.WehavesetupaSpeakersCorner.SingaporeanshaveformeddiscussiongroupslikeTheRoundTableandThinkCentretodiscusspoliticalissues.Inthespiritofdiscussion,theGovernmentwillfromtimetotimedisagreepubliclywiththeirviews.Itsurelycannotautomaticallyaccepteverythingthattheysay,norshoulditsimplyignorewhattheysay.IftheGovernmentthinksthatsomethingtheysaidwillhurtSingapore,ithastorebutthem,ifnecessary,forcefully.

ButthisshouldnotbeseenastheGovernmentsmotheringfreeexpression.TheGovernmentwillnotregardyouasanopponentunlessyouchoosetobeone.TheRoundTableisnotanopponent.ButtheThinkCentreisopenlycriticaloftheGovernment.Itisone-sidedinitspresentationofarticlesandviews,andtheGovernmentcannotignorethis.

Iknowsomepeoplewantevengreaterfreedom.Butwherepoliticsisconcerned,Iprefertoeaseupslowlyratherthanopenupwithabigbang.WhenGorbachevopeneduptheSovietUnionwithhis''''Glasnost'''',theSovietUnioncollapsedwithabigbang.Weshould,therefore,pumptheairintothepoliticalballoonslowly.Idon''''tintendtochangemynameto''''GohBaChev!

NEWSOCIALCOMPACT

IntheNewEconomy,competitionwillbecomeincreasinglyfierce,Thepaceofchangecanbeunsettling.

Thesocialframeworkwehavedevelopedtohelpthosewhocannotkeepupisgenerallysound.Butweneedtoimproveit,sothatwewillholdtogetherasanationdespitethemoreintensepaceoflifeandthewideningincomegap.IwanttooutlinehereanewsocialcompactforSingapore.

First,wewillcontinuetosubsidiseheavilythethreebasicservicesofhousing,educationandhealthcare.NoSingaporeanwillbedeprivedofthesethreeservicesnomatterhowpoorheis.

Secondly,inyearsofgoodeconomicgrowth,wewilldistributepartofthebudgetsurplusesbacktoSingaporeans,toenhancetheirassetsaswellastohelpthemdefrayessentialexpenses,suchastheirS&Candutilitycharges.

Thirdly,wewillpayparticularattentiontotheneedsoflower-incomeSingaporeans.Thisisalreadybeingdoneforsubsidiesforbasicservicessuchashealthcareandhousing.Also,lastyear,whenwetoppedupyourCPF,wegavelower-incomeSingaporeansmore.

Thispolicyofgivingmoretolower-incomeSingaporeansisright.ThehigherincomeSingaporeansowetheirsuccessinparttotheotherswhosupportoursocialcompact.Theymust,therefore,bepreparedtolendahelpinghandtothoseamonguswhoarenotsowelloff.Onlythencanweremainacohesiveandstablesociety.Itcannotbeeverymanforhimself.Forapersontosucceed,heneedsalaunch-padfromsociety.

Inturn,lower-incomeSingaporeansmustsupporttheenterpriseandeffortsofthosewhohavetheability.Wemustnotresentthosewhocreatewealth,forthemselvesandforSingapore.

TheGovernment,onitspart,willensurethateverySingaporeanhasequalandmaximumopportunitytoadvancehimself,whileprovidingasocialsafetynettopreventtheminoritywhocannotcope,fromfailingthrough.

Thisway,wecanhaveanenduringsocialcompactwheretheablecandoverywell,andwecanusesomeofthewealthgeneratedbythemtosubsidiseandhelpthelessable.

CHARITY,PHILANTHROPYANDVOLUNTEERISM

ButSingaporeansmustnotleavethetaskofhelpingtheweakentirelytotheGovernment.Ifwearetobuildacohesivesociety,individualsmustformlastingtieswiththeirlargercommunity.TofeelpassionatelyaboutSingaporeistocareaboutmorethanjustthosethingsthatdirectlyaffectourfamilies,ourfriends,andourselves.ItistobestronglycommittedtothewellbeingofourfellowSingaporeans,andtoshowcompassiontothosewhoareweakerthanourselves.

TheGovernmentwillcreateanevenmorefavourableenvironmentfortheinvolvementofthepeopleandcorporatesectorsincharity,philanthropyandvolunteerism.Amongotherinitiatives,theGovernmentwillgrantInstitutionofPublicCharacter(IPC)statustoprivatefoundationsthatsupportcharitableactivities.IhavealsoaskedRichardHutoconsidergivingincreasedtaxdeductionfordonationstoIPCs,ifpossible,doubletaxdeduction.

PRESERVINGOURRESERVES

LetmestressthatmyGovernmentwillcarryoutthissocialcompactusingbudgetsurplusesthatthisGovernmenthasaccumulated.Ihavenointentionofdippingintoourreserves,asChiamSeeTonghassuggestedtheGovernmentshoulddo.Rather,mypolicyistoensurethatourreservescontinuetogrowyearafteryear.

Whensomecountriesrunintoeconomicdifficulty,theycanpumpmoreoilfromtheiroilfields,orcutdownmoretimber.Wehavenooilfields,notimber,nonaturalresourcestofallbackon.Wecanonlydependonourreserves.Theyareourequivalentof"naturalresources".Assuch,wemustguardthemzealouslyforuseonlyinasevereandprolongedcrisis.

Whileourreservesarelockedup,aproportionoftheincomefrominvestingourreservesgoesintoourbudgetsurplus.Itisbecausewehaveprotectedthesereservesinthepastthatweenjoyacomfortablebudgetsurplusevenduringthiscurrentslowdown,whichwecanusetohelpSingaporeanscopewiththeslowdown.

ChiamSeeTongarguesthatSingaporewillnotgobankruptbyusing"atinyfraction"ofourreserves.Thisisaveryseductiveline.Seductive,butextremelydangerousforthepeoplebeingseduced.

Whatheisarguingforisforustoslowlykillthegoosewhichgivesusgoldeneggs.First,pluckoffsomeofitsfeatherstokeepuswarm.Next,sincethisdoesnotkillthegoose,MrChiamwillsuggestthatweshouldsliceoffjustonedrumsticktoeaseourhunger.

MyGovernment''''sphilosophy,ontheotherhand,istoprotectthepreciousgoose-ourreserves-andfattenit.Itwillthenlaygoldeneggs,someofwhichcanbeusedtohelpSingaporeansduringdifficulttimes,andsomekeptforhatchingmoregeese.

IfwehadfollowedMrChiam''''sadvicetonibbleatourgooseeverytimethereisaneconomicdownturn,wewouldhavecookedourowngoosebynow.SoIdonotintendtodipintoourreservestotacklethiscurrentdownturn.

RACE,LANGUAGEANDRELIGION

Foraneffectivesocialcompact,weneedalsoapeoplethatarebondedtoeachotheracrossrace,languageandreligiouslines.

Religiousfaithisasourceofstrengthinasociety.WecanbegoodChristians,Buddhists,MuslimsorHindusandbepatrioticSingaporeansatthesametime.Thereisnocontradictionbetweenthetwo.Butweshouldnotchangelong-establishedpracticesthatwillleadtosegregationbetweentheraces,ormakeitmoredifficultforanyonecommunitytointegratewiththerestofoursociety.

Letmeemphasisethatwewantintegration,notassimilation.Integrationisagradual,continuousprocess.Wewanttobondthedifferentpiecesofmosaictogether.Bondingistheresultofmutualtrustandunderstanding.Theprocesscannotbeforced,becausemutualtrustandunderstandingcannotbeforced.

HELPINGTHELESSABLE

NoteveryoneintheSingaporeMountEverestteammadeittothesummit.Onlythestrongermembersdid.However,theothersgavecriticalback-upsupportfromthelowercamps.Itwasverymuchateameffort.

Likewise,inoursociety,noteveryoneofuswillbecometopincomeearners.ButwemustofferSingaporeanswhofallbehindasenseofhope,forthemselvesandespeciallyfortheirchildren.Otherwise,theywillbecomedisaffectedanddisenchanted,whichwillsourthesocialclimate,anddisruptoureconomicprogress.Wewillhelpeveryoneofyougoashighupasyoucan.AndeverySingaporeanwillshareinandbenefitfromtheteam''''ssuccess.

Indeed,thestrengthofasocietyismeasuredbythecompassionandcareitsmembershaveforeachother.Themembersmustknowthatiftheyareeverdown,otherswillhelpthemgetup.Iftheycannotturntothemoreableforhelpinadversity,thenthebondsthatholdustogetherwillsnap.Oursocietywilldisintegrate.

DISINCENTIVESTOWORK

InsharingthefruitsofSingapore''''sgrowth,however,wemustnotinadvertentlycreatedisincentivesforSingaporeanstotakepersonalresponsibilitytofendforthemselves.Otherwise,webuildupacrutchmentality,whichwillleadtoindolence,dependenceandabuse.

HengCheeHow,whowillbeourcandidateinJalanBesarGRC,toldmethisstory.

WhenhewascoveringHougangsomeyearsago,hehandedoutcashtoneedyconstituents.Hehandedout$200toasmartlydressedyoungmanwhohadjustlosthisjob.ThemantoldCheeHow,"Youknow,the$200yougavemeisnotevenenoughtomeetthemortgagepaymentonmycar".CheeHowsaidthathefeltlikepunchingtheyoungmanintheface.

Letmegiveyouanotherexampleofhowsubsidiescanbetakenforgranted-utilityrebates.

Inthelastthreeyears,HDBhouseholdshaveseentheirmonthlyutilitybillsincreasebyabout25to35%.

Therearetworeasonsforthis.First,electricitytariffshavegoneup,becausetheworldpriceoffueloilusedforpowergenerationhasnearlydoubled.Secondly,Singaporeansareusingmoreelectricity.

Doyourealisethatifyouturnonyourair-conditionereverynight,itwillcostyouabout$23amonth?Ifyouusewaterheatersinsteadofbathingincoldwater,thatwillcostafamily$15extraamonthinelectricity.

Wecannotcapelectricitypricesassomepeoplehavesuggested.Thatwouldmeandirectlysubsidisingtheconsumptionofelectricity,andwouldleadtooverconsumption.Sowedecidedtohelphouseholds,especiallylower-incomehouseholds,throughrebatescreditedtotheirutilitybills.Thisway,ifhouseholdsuselesselectricity,therebateisstilltheirstokeep.OurapproachwastohelpSingaporeanscopewithincreasesintheirutilitybillswhileencouragingthemtosaveandnotover-consume.

Iam,however,worriedthatutilityrebateswillbetakenforgranted.Toillustratemypoint,afterweintroducedUtilitiesSavelastyear,doyouknowhowmanythank-youletters1receivedfromthepublic?Onlyone!However,1receivemanyletters-ofcomplaintsonvariousissues.ItshowsthatmanySingaporeanstakegoodgovernmentforgranted!公务员之家版权所有

Iamconcernedaboutthenegativelong-termeffectsoftoocomfortableasafetynetontheattitudeofSingaporeans.Butintheneweconomicenvironment,wedoneedtodomoretosupportlower-incomeSingaporeans.Hence,1amproposingthenewsocialcompact,aftermuchdeliberation.Weneedtostrikeacarefulbalancebetweenhelpinglower-incomeSingaporeans,andnotcreatingadependencymentalityamongourpeople.

THEELDERLYANDTHESINGLES

IhaveaskedtheMinisterstotakeahardlookatthekeyareaswheregroupsof

Singaporeansneedspecialattention.

Onesuchgroupisourseniorcitizens.Theirbiggestconcernismedicalcare.Toaddressthisconcern,theGovernmentwillintroducethreeinitiatives.Theseare:medicalcareforelderlySingaporeanssufferingfromchronicailmentssuchasdiabetesandhighbloodpressure;enhancingMedishieldbenefits;andanew"Eldershield"schemetoprovideinsuranceagainstseverephysicaldisabilities.

LimHngKiangwillannouncethedetailsoftheseinitiativeslater.

AnothergrowinggroupofSingaporeanswhorequiresomeattentionarethesingles.Oneoftheirmainconcernsishousing.HDBwillnowallowthoseaged35andabovetopurchaseresale3-roomflatsinurbanestates.HDBisalsoconsideringstudioapartments,earlierconceivedforelderlySingaporeans,asanotherhousingoptionforsingles.

CPFTOP-UP

Atlastyear''''sRally,IannouncedaCPFtop-upofbetween$500and$1,700foreacheligibleSingaporean,tobegivenoutintwoequalpayments.ThefirstpaymentwasgiveninJanuarythisyear.WewillmakethesecondpaymentinDecember.

Iwastoldthat187,000eligibleSingaporeansmissedoutonthefirstpayment.Thisisapity.

IwanttogivetheseSingaporeansasecondchancetoqualify.Iftheycontributetheminimum$100totheCPFby31October,wewillgivethemboththefirstandsecondpaymentsfortheCPFtop-up.

"NEWSINGAPORE"SHARES

Iwouldalsoliketointroduceanewschemetohelpespeciallylesswell-offSingaporeans.Iintendtogiveyoushareswhichpayaguaranteeddividendforafixednumberofyears,plusbonuspaymentswhentheeconomydoeswell.

Theseshareswillalsoberedeemableimmediatelyforcash,butnotallatonce.

Iwillcallthisscheme"NewSingapore"Shares.

Iknowyouarewaitingtohearhowmuchyouwillbegiven,butpleasebepatient.Howmuchtowhom,andwhen,willdependonthestateoftheeconomythisyear.IwanttoseethethirdquarterresultsbeforeIdecide.

CONCLUSION

Forourgrowthstrategyandsocialcompacttobeeffective,Singaporemustbecohesiveasanation.

Asglobalisationintensifies,thiswillbecomeevenmorecritical.MoreandmoreSingaporeanswillgooverseastostudy,workanddobusiness.Wewelcomethis,butwemustalsofindwaystokeeptheirheartshere,sothatwherevertheyare,theywillfeelemotionallytiedtoSingapore,standupforit,andreturnonedaytocontributetoitsgrowth.

SingaporeansmustbelievethatthebuildingofSingaporeisanexcitingenterprise.ForSingaporetosurviveinthelongerterm,wemusthaveacoreofSingaporeanswhofeelpassionatelythatthisplaceisworthfightingfor.Tosucceed,wemustbeproudofwhoweare,ofourcountryandourfellowcitizens.Wemustfeelthattogether,wehavecreatedsomethingpreciousthatbelongstoallSingaporeans.

Throughoutworldhistory,nocountryhasremainedrichforever.Countriesgothroughacyclewheretheyarepoor,growprosperousandpowerful,thenstarttodecline.

Wehavebecomerichinonegeneration-amiracleperhaps-buttooquicklyandhencenotdeep-rootedenough.Willwedeclineinthenextgeneration?MycolleaguesandIaredeterminedthatwewillnot.ButweneedthiscoreofSingaporeanswhofeelpassionatelyaboutourcountry.Weneedyoursupport.Inthisclimbupthemountainofeconomicdevelopment,wewillequipyoutotacklethenextobstacleandtotryforthesummit.Butweneedalsotopullourslowercolleaguesalong,sothattheytoocangohigher.公务员之家版权所有

Ifwehavethecouragetoconfrontproblemsinsteadofskirtingthem,ifwearepreparedtoenduretemporaryhardships,andifwecanadapttochange,wecancontinuetodobetter.ThisNewSingapore-aglobalcitywithastrongsocialcompact-istheMountEverestwemustachieve.Wemustsucceed,sothatourchildrencanfacetomorrowwithoptimismandconfidence.