‘The Winds Are With Us, Our Ship Is Ready’

Source : Today, Thursday, August 9, 2007

Strong growth will continue if Singapore adapts to economy

THE Singapore skyline — spotted with cranes, perhaps a little hazy on the day, but distinctive because of its constant transformation-made the perfect backdrop for the Prime Minister to share some very good news with Singaporeans as the nation celebrates its 42nd birthday.

The figures were nothing short of impressive: In the first six months of this year, the economy grew 7.6 per cent, “higher than we had expected”, said Mr Lee Hsien Loong. A total of 111,000 jobs were added, “the highest number ever” and unemployment stands at 2.4 per cent, which he described as “very low”.

Against a favourable global backdrop and with Singaporeans having “every reason to be confident” about the future, Mr Lee announced that the Government had also raised its official growth forecast for the whole year to “between 7 and 8 per cent”, up from 5 to 7 per cent. Narrowing the range emphasised this quiet confidence.

The upshot of all these good-looking figures?

“Workers are enjoying good wage increases and higher bonuses because businesses are doing well,” said Mr Lee in his televised National Day Message yesterday.

“Our efforts to transform our economy are paying off. The global economy is continuing to change. If we keep on adapting and readapting to it, we can keep growing strongly for many more years,” said Mr Lee, whose speech also touched on how Asia had changed for the better since the 1997 financial crisis.

In a break from the past, the Prime Minister delivered his third National Day message from the top floor of the National Library to reflect a changing Singapore

And the changes, he noted,are aplenty, with many “new and exciting projects” underway, such as the integrated resorts, the banking and financial centre, the gardens by the bay and, of course, this year’s National Day Parade held on the largest floating stage in the world.

“There is buzz and excitement in the air, as our city changes before our eyes day by day ... We are not just creating a new downtown, but building a first-class living environment for all Singaporeans.

“Within a decade, our city and our whole country will be completely transformed. The world is taking notice. It will be a new Singapore, but with our own unique identity, and the can-do and neversay-die spirit of the Lion City,” said Mr Lee, echoing — perhaps even more so this year — the upbeat tone of his messages in the past two years.

Still, despite the rosy outlook, Mr Lee made it clear Singapore faces one major challenge to its social harmony and national cohesion: Widening income gaps.

Noting that such income gaps exist everywhere in this age of globalisation — where the presence of hundreds of millions of unskilled workers have pushed down wages at the lower end — Mr Lee assured that a lot could be done to help Singaporeans cope with it.

“Our basic approach is to grow the economic pie. When companies expand, there will be more and better jobs for everyone,” he said. The Government is also working towards strengthening the social safety nets by putting in place programmes such as ComCare and Workfare to help the lower-income families.

But apart from globalisation pressures, the widening income gap here is also due to Singapore’s ageing population.

“I know many older Singaporeans worry about whether they can make ends meet. We are making changes to help you to work longer, earn more and build your retirement savings,” said Mr Lee. “We will enhance the value of your HDB homes, which are a nest-egg for old age. We will improve the CPF scheme, so you can enjoy a steady income and peace of mind in your golden years.”

While changes are being introduced at the official level, Mr Lee cautioned that the Government “cannot solve all the problems alone”.

“Everyone must play a part. We each must take responsibility for ourselves, make the effort to do well, and provide for our families and our old age,” he added.

Mr Lee also urged better-off Singaporeans to do their bit.

“The more you have gained from society, the greater your obligation to give back something to your fellow citizens. Let your giving come from the heart,” he said.

The National Day message has traditionally served as a curtainraiser for the Prime Minister’s biggest political speech of the year — the upcoming National Day Rally. And, judging from the time devoted during his 10-minute speech to the widening income gap, many expect this to be a key theme when Mr Lee next addresses the nation on Aug 19.