economic crisis since our Independence.
In the first quarter of 2009, our gross domestic product (GDP) plunged 10 per
cent. But our economy pulled back up so that for the whole year GDP declined
only 2.1 per cent. We kept unemployment low, bringing it down to just 2.1 per
cent in December. In a recession year, we managed to increase employment by
39,000. Thankfully, our efforts produced a much better outcome than we had
feared.
Singaporeans faced the difficulties with resolution and fortitude. We were
apprehensive, but did not panic. Instead, we calmly made a collective effort to
find practical solutions, to keep companies viable and get workers properly
skilled to hold on to jobs. Because we responded as one people, we prevailed.
However, we must remain vigilant in the Year of the Tiger. The Tiger is a force of
nature, and this year holds some risks and uncertainties. Although economies
have largely stabilised, there may still be surprises and close calls.
For example, property values in Dubai have fallen sharply. Greece is in severe
financial distress, and Spain and Portugal are under pressure too. This is
troubling the whole of the eurozone, and unsettling global financial markets.
Such events far away can hurt Singapore, because we are so open and
globalised. The Government is therefore carefully monitoring the economy.
Singaporeans should be psychologically prepared as well, and not let down our
guard too soon.
The Tiger also symbolises bravery and strength. Singaporeans must be imbued
with the spirit of the Tiger, ready to face the challenges and uncertainties, and
stout-hearted in pushing ahead to create a brighter future.
The Economic Strategies Committee (ESC) has recommended moderating the
inflow of foreign workers, and raising our productivity growth, from the current 1
per cent to 2-3 per cent, in order to sustain GDP growth of 3-5 per cent over the
next decade. Beyond the numbers, this means a significant shift in our strategy,
from merely expanding to upgrading the economy.
We are at a turning point in our economic development. We cannot continue
importing foreign workers as liberally as before because we will run up against
space constraints. This means our total workforce will expand more slowly, which
by itself would imply slower economic growth. To make up for this, and achieve
the 3-5 per cent growth target, we must raise productivity much faster, and do
more with the resources that we have.
Importing fewer foreign workers does not mean less competition for
Singaporeans because our real competitors are out there in the world, and not
here among us. Instead it means that our workers have to work harder to
upgrade ourselves. Only when every citizen is well- trained, and is continually
improving his skills and know-how, will Singapore do well, and every citizen
better his life.
Upgrading productivity is therefore a vital task. We must not fail, otherwise our
economy will stagnate, our city will become less vibrant and our children will
enjoy fewer opportunities. By working smart and bringing about this economic
transformation, we can exploit the abundant opportunities in Asia and create
more chances for ourselves.
Besides upgrading the economy, another challenge is maintaining and
rejuvenating our population. We need enough babies to replace ourselves in the
next generation. We also need to preserve a core of citizens who are born here
and have grown up here, who will maintain and pass on the values and spirit of
our nation.
Unfortunately, despite all our efforts, we are producing far too few babies. Last
year our resident TFR (total fertility rate) slid further to 1.23 from 1.28 the year
before. This is the lowest we have ever experienced. It means last year we were
short of at least 10,000 babies just to replace ourselves.
For the Chinese, the TFR was even lower, going down from 1.14 to 1.09,
equalling the previous lowest level for the Chinese (in 2003 and 2004). Probably
the recession last year made couples hold back having babies. But it also reflects
fundamental social changes that are affecting all East Asian societies.
I am worried about this year too. Some Chinese couples prefer not to have
children during the Year of the Tiger. In each of the last three Tiger years (1998,
1986 and 1974), the number of births dipped by 7 per cent. It is one thing to
encourage ourselves with the traditional attributes of the zodiac animals. But it is
another to cling on to superstitions against children born in the Year of the Tiger,
who are really no different from children born under other animal signs.
Regardless of the zodiac sign, we must keep this a good place to have and bring
up children. The Government will continue to support and encourage
Singaporeans to have children. But more important is support from the family,
which helps lessen the burden of raising the next generation. Many Singaporean
working mothers have told me they depend on their families to help them juggle
career and child care. Certainly many women MPs could not have managed the
demands of their public duties on top of their own careers without their families
fully behind them.
Recently I met Ms Sophia Pang, who participated in the all-women
Commonwealth Antarctic Expedition last year. The expedition took her away
from home for more than two months. She told me that during her absence, her
mother, mother-in-law, sister and husband all chipped in to look after her three
young children. Without this strong family support, she could not have become
the first Singaporean woman to ski to the South Pole.
Not everyone will aspire to travel to the ends of the earth. But family support will
give many of our women the opportunity and confidence to pursue their careers
and interests, and to build families. It does not mean they can completely avoid
sacrifices and trade-offs - that is not possible. But it is a tremendous reassurance
for a young couple to be able to count on their parents to help care for their
children. With state and family support, I hope young people will think seriously
about getting married and starting families earlier.
The family is the basic unit of our society. During this Chinese New Year period,
Chinese families will gather for their reunion dinners, and over the next few days
visit relatives and friends all over the island. The other races have similar
customs during their respective festivals. I am cheered to see the younger
generation keeping alive this healthy tradition, for this means that Singapore
families are in good shape.
In this age of globalisation, we need to make an extra effort to strengthen the
family unit. Many Singapore families have members overseas, sometimes
working in far-flung places - helping to stabilise and reconstruct Afghanistan,
keeping the Gulf of Aden safe from pirates, developing a port in Panama, or
constructing a shipyard in Azerbaijan. Such separations can sometimes be hard
on the family.
Fortunately, with the Internet, family members can continue to keep in touch from
distant lands, through e-mail, Skype, Facebook, etc. I hope families will make full
use of these modern devices, to at least have a video chat over the festive
period. Nowadays, the other side of the world is no longer so far away.
Let us recall how important our families are to us; rejoice that Singaporeans have
united to overcome a very major challenge; and resolve to make the best of the
year ahead.
I wish all Singaporeans a very happy Year of the Tiger.
Remarks following discussions with Prime Minister Lee Hsien Loong of Singapore and an exchange with reporters: July 12, 2005.(Week Ending Friday, July ... Weekly Compilation of Presidential Documents
