SINGAPORE: The future is promising for Singaporeans, but challenges such as increasing productivity and raising skills across the board need to be tackled in the next five years, Minister Mentor Lee Kuan Yew said.
Mr Lee made the assessment at the Tanjong Pagar GRC’s Lunar New Year dinner.
The Minister Mentor also said he expects Singapore’s economy to grow between four and six per cent this year.
Speaking to residents in his constituency, Mr Lee said Singapore has done well in the last five years. The island state has a growing economy, increasing real incomes, better homes which are rising in value, and citizens are generally better off.
To take advantage of the economic opportunities and make up for low birth rates, Singapore had to increase its immigration. There were also more foreigners working in Singapore on Work Permits, S—passes and Employment Passes. These foreign workers contribute to the country’s economic growth.
Mr Lee noted that in the past few months, the government has taken further steps to widen the differentiation between citizens and Permanent Residents, and to slow down the inflow of foreigners.
However, he said Singaporeans must recognise that without foreign workers in the construction, manufacturing and service industries, many projects, such as the integrated resorts (IRs), could not have been possible.
"These two IRs have increased jobs available, and will bring a huge number of tourists and give a boost to our economy," the Minister Mentor said.
"Foreign workers also built housing and infrastructure projects like public transport, schools and hospitals all over Singapore. Without them, these projects could not have proceeded and our economy would slow down, to the detriment of Singaporeans."
Mr Lee explained that if Singapore wants to slow down the intake of foreign workers and yet continue to prosper, local workers must increase their productivity.
"Let me explain what happens when we make progress. HDB prices go up, private home (prices) go up, all asset prices go up. Everybody finds he owns something more valuable in the house, his shares are worth more and he can live a good life," said Mr Lee. "Of course we have to put up with more crowded trains, more crowded buses, (but) it cannot be helped.
"Let me tell you what happens when we slow down too much. You get the reverse spiral. Low growth, maybe even zero growth. Last year we had minus two per cent. Prices go down, property prices go down, incomes go down, you can’t refurbish your houses, no new SERS, no upgrading and the country goes down.
"So between the two — growth against no growth, I am confident we chose the right decision — growth, whatever the inconveniences or competition for space, buses, MRTs, and even schools. But we always give preference to our own citizens.
"Without growth, Singapore will not be what it is and the key to our growth is a government taking right decisions and labour unions, employers, and the government working together. No other country in the world has got this combination."
"The same number of Singaporean workers must produce more by getting better training, acquiring higher level of skills, working smarter and making a collective effort as the Japanese do to make their companies succeed.
"If we cannot increase the productivity or the output of our citizens, our economy will slow down. We will have a deflating economy, with a series of knock on effects as prices of all assets, including flats will go down... demand will lessen, pay will fall and so will the number of jobs and promotions."
Mr Lee added that when this happens, talented Singaporeans will leave for greener pastures, which will lead to Singapore’s decline.
"That is why the government decided in the past five years that it was better to grow the economy and manage the accompanying social pressures rather than slow down the economy. If our neighbours grow and we stagnate, Singapore will face a very different geo—political environment in the future."
Hence, to do well in the next five years, Mr Lee said that Singaporeans must raise skills across the board, have more enterprise innovation, and restructure the industries.
Every worker also has to be re—skilled, re—trained and re—educated to achieve higher standards of capabilities.
Mr Lee said he believes a three—way partnership that involves the government, unions and employers can achieve this.
In his Budget speech next Monday, Finance Minister Tharman Shanmugaratnam is expected to elaborate on how Singapore plans to tackle these issues, which have been highlighted by the Economic Strategies Committee.
— CNA/yb