National Day Rally 2008 Speech by Prime Minister

NDR 2008

Celebrating the Singapore Story

1. Our Economy

2. Our Society

3. Our People

4. Our Future

5. Conclusion

Our Economy

1. Start by talking about the economy.

a. Have not done so in detail in the last few years
b. Economy was doing well, so focused on social issues, e.g. income gap and ageing population
c. But timely to discuss the economy now

GLOBAL PROBLEMS

Last few years, when conditions were good, we did the right thing planning well ahead

a. Restructured and upgraded our economy
b. Good pipeline of projects – F1 Grand Prix, IRs, banking, major investments brought in by EDB
c. Will sustain our momentum and keep our economy growing
d. But dark clouds have gathered in our external environment

US faces serious problems

a. House prices have crashed and are still falling
b. Unemployment rising
c. Consumers are losing confidence and spending less
d. Affecting the rest of the world
    i. Europe already slowing down sharply
    ii. Must expect impact on Asia too
e. These global economic problems will continue at least into next year
    i. Some experts think even longer

Singapore is starting to feel the impact

a. Growth has slowed in 2Q
b. Manufacturing sector is affected
c. Exports are weak
d. Tourist arrivals are down – even Asian tourists are travelling less
e. Retail stores and restaurants say business is slow

This year will see 4-5% growth – not bad

Next year expect slow growth, and more uncertainties

a. Not predicting a crisis
b. We are competitive and investors still want to be here
c. But we must be vigilant and psychologically prepared for trouble
d. When the global economy recovers, we will bounce back up

INFLATION

Hottest issue for Singaporeans is the rising cost of living

a. Inflation is a worldwide problem
    i. Price of oil (Slide 1)
       1. 8 years ago – US$20 per barrel
       2. Today – around US$110 per barrel
    ii. Price of rice (Slide 2)
       1. 8 years ago – US$200 per ton
       2. Today – around US$800 per ton

b. People are agitated all over the world
    i. Demonstrating and rioting

       1. In Europe
          a. Truckers in France (Slide 3)
          b. Farmers in Spain (Slide 4)

       2. In Asia
          a. Fuel protests in Indonesia (Slide 5)
          b. Food protests in Pakistan (Slide 6)
          c. Rice protests in Philippines, with long queues for subsidised rice (Slide 7)
    ii. In Singapore
       1. Fortunately, we have plenty of rice (Slide 8)
       2. No protests or demonstrations
       3. But I know people are also unhappy about price increases
       4. Many pictures on the internet. My favourite (Slide 9)

c. Completely understand how Singaporeans feel
    i. But we should react rationally
    ii. Understand why it is happening to us, and what we can do about it

We cannot prevent prices from rising in Singapore

a. We import most of our food, except a few eggs and some fish
b. We import all our fuel, and produce all our electricity from imported oil and natural gas
c. When world prices go up, how do we keep our rice, petrol, or electricity prices down?
d. In terms of dollars, wages have not gone down
    i. Most workers are earning more dollars this year
    ii. Last year was a good year; wages and bonuses went up
    iii. But when we spend money, we find that each dollar has shrunk
  iv. With inflation, some of your wage increase went to you, but quite a lot went to the oil producers

e. Simply put, oil producers (e.g. Arabs and Russians) are now richer, therefore oil consumers (e. us) are now poorer

Singaporeans wish the Government would do something to keep prices from rising, e.g. just control prices, and not let them go up

a. But subsidies cost huge sums of money
b. Even oil and gas producers find them hard to sustain
c. Many countries have had to cut their oil subsidies recently, e.g. Indonesia, Malaysia, China and India

We have not fixed electricity price; instead, we have given U-Save

a. e. top up your SingPower account with cash
b. Help you directly
c. Lower-income households get more – this year’s U-Save is equal to 3-6 months of their utility bills
d. If you can cut down and use less electricity (or gas or water), then the U-Save money will offset your bills for an even longer time

This year we have done more to help Singaporeans

a. Had foreseen the spike in inflation last year
b. Hence made significant distribution in the Budget
    i. For all Singaporeans, but targeted at the middle-income and especially the needy
    ii. Growth Dividends, Medisave Top-ups and other relief measures

c. Besides the Budget, many other measures to help needy
    i. For low-income workers
       1. Workfare to top-up their income and savings
       2. Special one-off payment in this year’s NWC
    ii. For the destitute
       1. Higher Public Assistance rates
       2. ComCare and Medifund (+ Medifund Silver)
    iii. For retirees
       1. Extra 1% interest on first $60,000 of CPF balances since 1 Jan (announced in last NDR)
       2. Will help preserve the value of your savings for old age

d. Overall, $3 bn of help from Government this year

MIDDLE-INCOME SINGAPOREANS

Middle-income Singaporeans feel pressured too

a. Have not forgotten them
b. Growth Dividends etc. extended to them
c. Helped with education costs, e.g. extended university and poly bursaries and topped up post-secondary education accounts
d. Overall strategy to help middle-income – keep taxes low, to minimise your burden
e. Personal income tax
    i. Already lower than most other countries, including Hong Kong except for the highest income group
    ii. This year generous personal income tax rebate – 20%, specifically aimed at the middle-income groups, total $380 mn

f. Car-related taxes
    i. Used to be a significant burden, because of high car ownership taxes
    ii. Discussed this at the Economic Review Committee
    iii. Decided on a major policy shift
       1. Reduce ownership charges and taxes, e.g. ARF, excise duties, road tax, and release more COEs
       2. Enable more people to afford cars
       3. Increase ERP to control congestion
    iv. Compare 2000 with 2008 (Slide 10)
       1. Overall, vehicle-related revenues halved – from $6.1 bn in FY2000 to $3.4 bn this FY (2008)
       2. Reduced ownership charges by a huge amount
       3. Doubled ERP, but still very small by comparison
    v. Hence more households now own cars (Slide 11)
       1. Overall figures – number of car owning households increased by 1/3, from 320,000 in 2000 to 430,000 this year
       2. For individuals – big difference when you buy a car
       3. Actual example of a 1.6L Toyota Corolla (Slide 12)
          a. In 2000, paid $110,000 (all in + ownership charges)
          b. Today, pay much less – $64,000
          c. Even though OMV is about the same (2000 - $19,000, 2008 - $17,000)
    vi. Result – more cars around us
       1. Can see it in more crowded HDB car parks
       2. And on the roads

Hence need for recent increase in ERP charges

a. Many people are upset
    i. But have to see the bigger picture
    ii. In fact, they are (unconsciously) benefitting from the overall policy to reduce car taxes, and lighten burden on them

b. Considered carefully how to adjust ERP without increasing burden
    i. Worked out a package
    ii. Raised ERP but also reduced Road Tax at the same time
    iii. Overall cost has actually come down
    iv. Example of a 1.6L car again
       1. Will pay more ERP per year
       2. But more than offset by 15% reduction in Road Tax
       3. On average drivers enjoy net savings
          a. ERP – pay $76 more
          b. Road Tax – pay $130 less
          c. Savings – $54 every year

c. People may not realise or remember
    i. How much Road Tax they are paying, or paid last year
    ii. Sometimes another family member pays the tax
       1. I asked one driver if she had received her Road Tax reduction
       2. She said she had to check with her husband!
       3. So she does not connect the ERP charges with the road tax reduction. Her IU beeps when she goes through the ERP gantry, but there is no beep when her husband receives the road tax benefit

d. We will do more to draw the connections, and explain how the middle-income have actually benefited from government policies

Also improving public transport as alternative to cars

a. Building more rail lines
b. Running some 800 more train trips per week – reducing waiting time and overcrowding during peak hours
c. Improving bus services
d. Making transfers more convenient, and increasing transfer rebates
e. Cannot have every household owning a car, but will have a first class public transport system for everyone

HDB RENTAL FLATS

Besides cars and public transport, we must also pay attention to wider needs of the public

a. Can get a good sense of their problems from mix of MPS cases
b. Not many job seekers, compared to the last recession
c. Some hardship cases – we have many schemes to help them
d. One worrying trend – more are looking for HDB rental flats
    i. Applications have tripled in a year
    ii. Rental appeals now form the bulk of their MPS cases
e. HDB is building more rental flats
f. But not all who apply for rental flats are truly in need
    i. e.g. one applicant (60-year-old lady) with 3 children, 2 of whom are living in private properties; her children told HDB they were prepared to hire a maid to look after their parent in the rental flat!
    ii.For them, rental flats are not the right solution
    iii. Instead they should look for other viable alternatives:
       1. Rent out a room or even the whole flat
       2. Lease buy-back scheme for 2R and 3R flats, which will be implemented soon; or
       3. Move into smaller flats or studio apartments

g. MND/HDB will review the rental flat scheme
    i. Keep rental flats an effective safety net for the minority of genuinely needy families, with no assets or family support

MORE HELP

For the vast majority of Singaporeans, we have provided comprehensive measures in the Budget

a. Most people have forgotten how much they are getting
b. 3R, low-income household (elderly couple with one child working) – $5,000 this year. Much more than their increase in cost of living
c. 5R middle-income household (middle-aged working parents with two young children) – $3,400 (excluding personal income tax rebate)
d. But inflation has turned out higher than expected, especially energy prices
e. Looked at the budget position

Decided to do more

a. Second instalment of Growth Dividends due on 1 Oct
b. Will increase this by 50%
c. Also increase this year’s U-Save rebates by 50%
d. Together, 3R household (like the one mentioned earlier) will get $500 more, and 5R $210 more
e. Overall an extra $250 million of help from the government
f. Plus all the other provisions, will help Singaporeans see through this period

But don’t think hongbaos will solve the problem

a. Best solution is still to keep the economy competitive
b. Become more productive, and so earn more for ourselves
c. Then we can raise our standard of living, despite the increase in oil and food prices

Our Society

Well being of Singaporeans depends not just on bread and butter issues, but also on our human and social environment

a. How we behave and relate to one another
b. How we can make Singapore a more gracious society

We have done many things over the years to improve ourselves

a. Many campaigns and initiatives, e.g. queue up, no spitting, flush toilets, and most recently, service excellence (GEMS Movement or Go the Extra Mile for Singapore)
b. Sometimes people laugh at us
    i. Actually, these are things we can work on and improve
    ii. If we make people aware of their behaviour and educate them to learn new habits
    iii. Gradually people will respond, and upgrade our social norms
c. We have made progress
    i. It may be hard for us to tell
    ii. But those watching us from afar notice
    iii. Letter in ST Forum from a Sri Lankan lady
       1. First visited Singapore in 1968 as a young student on her way to the US
       2. Visited again 40 years later, needed a wheelchair at Changi airport
       3. Quote her letter
   “From the moment I landed until I left, the city impressed me…Everywhere, I met only kindness….I was in a shopping centre and asked a young girl the way to the MRT station. She offered to show me the way, and taking my shopping bags, led me to the station….shopkeepers gave me water to drink, people waiting for a bus walked with me to the correct bus stop, and people helped me across the street. I have never experienced this sort of kindness anywhere else in the world”

We can do even better

a. Singapore Kindness Movement (SKM) conducts surveys of social behaviours that Singaporeans consider important
b. Some things we are good at doing
    i. Sit properly in the cinema (e. don’t put your feet on the seat in front of you)     ii. Say “thank you” after being served c. But also many things we need to improve
    i. Say “please” – not so common
    ii. Clear tables and return food trays – need to improve
       1. Trying to inculcate this habit, e.g. at Suntec City
       2. But will take time to change mindset – “I go to the foodcourts to eat, not to clear tables”
       3. Quote email from a lady on making Singapore a more liveable place:
       4. “Actually we should feel quite embarrassed to leave our dirty plates and dirty table for the next diner. In my mum’s house, after eating, we will clear our plates and clean the table…this is a good habit we should adopt outside the home.
       5. “Oh yes, most importantly no fines, no fines. Dishing out fines hurt relationships and no good image for PAP government.”
d. Recently, Mediacorp held a contest on the Morning Express Class 95 FM
    i. DJs Glenn Ong and the Flying Dutchman invited listeners to send in videos of the best and worst Singaporean habits
    ii. Tremendous response
    iii. Asked Mediacorp to compile some highlights, good and ugly

Best way to focus our efforts – when there is a major event and we are put to the test

a. We have done well before
    i. IOC in 2005
    ii. IMF/WB Annual Meetings in 2006
b. Now we must prepare for other major events
    i. F1 next month
    ii. APEC next year
    iii. YOG in 2010
c. Let’s use these opportunities to improve our social graces

That is how other countries have done it

a. Sydney Olympics, 2000 set a high benchmark
    i. The show was fantastic
    ii. But what really impressed visitors was the genuine warmth and sincerity of the Aussies
    iii. 47,000 volunteers cheered, drove buses, manned checkpoints, greeted visitors with a friendly “G’day mate”
    iv. Created a whole atmosphere of friendliness and hospitality

b. China – now hosting the Olympics
    i. Making a special effort to welcome athletes and visitors
    ii. Launched large-scale civility campaigns to educate people
       1. Designated special days in every month to remind them of their social etiquette and manners
       2. Queuing day on the 11th (because 11 resembles two people lining up)
       3. Seat-giving day on the 22nd (because 22 resembles two chairs side by side)
    iii. For the Games, mobilised 100,000 volunteers, mostly young men and women
    iv. They have impressed visitors too with their friendliness, enthusiasm and pride

We should mobilise ourselves too for the YOG

a. This is the first time ever the Games are being held
b. Let’s make a special effort to deliver an outstanding YOG
c. Look at how we mobilised successfully to support the bid
    i. Singaporeans from all walks of life spontaneously organised themselves to participate in many activities – schools, youth groups, companies, taxi drivers, etc.
    ii. We impressed the IOC and so won the bid

d. Let us rally together again – show what Singapore is about and welcome the world with our spirit and warmth

But we must not just stop at the YOG

a. Work consistently and patiently over many years
b. Strive for even higher standards and for a permanent improvement in our social behaviour
c. Make Singapore a better place for all of us

OUR PEOPLE

We are creating a better Singapore for future generations to enjoy – so my next topic is babies

Long story captured in this chart (Slide 1) – shows our Total Fertility Rate, how many children each woman has on average over her lifetime

a. Says a lot about our history, economy, culture and policies
b. History
    i. Sharp fall in TFR in less than 20 years (1960-1975)
    ii. Reflects rapid transformation of our society, as education levels improved and living standards went up dramatically
    iii. Just to replace ourselves, we need TFR of 2.1 (Slide 2)
    iv. We are far below the replacement level
c. Economy – look at the last 30 years (Slide 3)
    i. When times are hard, people tend to have fewer babies
    ii. 1985 recession, Asia Financial Crisis, 9/11 & SARS (Slide 4)
d. Culture
    i. Can see some peaks – 1976, 1988, 2000 (Slide 5)
    ii. Why? Years of the dragon
    iii. Unfortunately each dragon has been smaller than the previous one
    iv. Next dragon in 2012 – probably a baby one
e. Family policies (Slide 6)
    i. 1966 – ”Two is Enough” – too successful
    ii. 1987 – ”Three if you can afford it” – quite successful
    iii. 2001 – Baby Bonus – overwhelmed by economy
    iv. 2004 – my contribution, Marriage & Procreation package
       1. Some effect but very small
       2. Zoom in to see the change, from 1.26 to 1.29 (Slide 7)
       3. But still way below where it is supposed to be

Question: what more should we do?

a. First, encourage people to get married
b. Second, encourage couples to have children

MARRIAGE

First step is to find the right partner and get married

a. I am not an expert – consulted those with experience, e. the matchmakers
b. We have SDU, SdS, and many private dating agencies
c. I talked to several of them
  i. We had a lively exchange and I learnt a lot
  ii. Great material for a TV studio discussion

Let me summarise the main learning points

a. Many singles do want to get married
    i. They are serious, and not just out to have a good time
    ii. But they face difficulties
b. Some have never dated
    i. Once they start work and settle into a routine, no opportunities to socialise and meet new people
    ii. Relate conversation one matchmaker had with his client
       1. Q: What do you usually do after work?
       2. A: Go to the gym
       3. Q: How about the weekends?
       4. A: Stay at home with family
       5. Q: Do you go out?
       6. A: Yes, bring nieces and nephews out to play
       7. Q: Have you met any new friends in the last week?
       8. A: [Dead silence]
       9. Q: How about the last 1 month?
       10. A: [Dead silence again]

c. Some start too late
    i. Dating agencies say that women in the late 30s have a serious problem
       1. Some men are in their late 30s too
       2. But they are looking for younger women in their 20s
       3. So the older women have difficulties pairing up
    ii. Confirmed by what one such lady told me at a dialogue
       1. She had put her career first when she was younger
       2. Later when she wanted to settle down she tried the dating agencies, but had no luck
       3. She regrets her decision now, but still hopes to find someone

d. Good news is that more people are prepared to seek help from dating agencies
    i. Women are more willing to do so
    ii. Men tend to be more sensitive about their egos
    iii. Most dating agencies have more women than men – 60:40

e. Unfortunately sometimes their social graces are not up to scratch
    i. e.g. dating agency arranged for a guy to meet a date
    ii. Setting was a romantic dinner at a nice restaurant
    iii. But he showed up wearing slippers!
       1. Asked why he did not dress up for the occasion
       2. His reply – this is me, this is how I am!
       3. After some tactful grooming advice, he made progress and learnt to keep a pair of shoes in the car, and put them on before dates
       4. The couple are now happily married

f. Also need to have realistic expectations
    i. Have to make an effort for the relationship to work
    ii. Easy to get carried away by romantic images in the movies
       1. Meet someone of your dreams, instantly fall madly in love, get married, live happily ever after
       iii. But we are ordinary people in real life
          1. May not have instant sparks on the first date
          2. But take time to discover the person for who he or she is, nurture the relationship, and love may blossom

We will do more to help singles get married

a. SDU and SdS are working on this
    i. They now cater to different markets – graduates and nongraduates
    ii. We should be more flexible
    iii. Will merge SDU and SdS
  iv. Together they will have more critical mass, more activities, and hopefully more pairing up and marriages

b. Some young people prefer to use private dating agencies
    i. But they want quality assurance, e.g. to know that it is a reputable dating agency
    ii. SDU will go into a new business
       1. Certify private agencies that meet quality standards
       2. “SDU Trust” mark to distinguish them (Slide 8)

Young people themselves should take the first step, and not leave it too late

a. Make time to go out and meet new friends
b. Join a dating agency, be it SDU/SdS or a private agency
c. You may find someone you are attracted to
d. Then you can marry the person you love, and love the person you marry

PARENTHOOD

    8. Once couples are married, we would like them to have children

a. We used to think this would follow naturally
b. But no longer always the case
    i. Couples are having fewer children or having them later
    ii. Some even prefer not to have any children at all
    iii. Why?

c. We looked at other countries
    i. Happening all over East Asia
       1. Confucian societies with similar cultural values
       2. Undergoing rapid social and economic change
       3. So some powerful social and cultural forces at work
  ii. Happening in Western societies too
       1. Australia
          a. Government is working hard to encourage couples to have more children
          b. Slogan: “one for Dad, one for Mum, and one for the Country”
       2. Europe
          a. Many countries facing a dearth of babies
          b. But something interesting in their experience
          c. Southern Europe (Portugal, Italy, Greece, Spain)
             i. More macho culture
             ii. Women are more likely to stay at home
             iii. Fewer babies
          d. Northern Europe (Netherlands, Scandinavia)
             i. Gender roles are more equal
             ii. Women are more likely to work
             iii. More babies
d. What about Singapore?
    i. I discussed this with a group of Singapore women, married and single, young and not so young
    ii. They agree that gender roles and helping mothers to work are important
    iii. Gave me many ideas on how we can facilitate this

First, shared responsibilities for child raising

a. Tradition that husbands go out to work and wives stay at home to look after the children
    i. Women do have a better touch with children

b. But situation today is different
    i. If husbands leave everything to the wives, or women are forced to choose between work and family, the women will go on strike
    ii. Husbands must share duties in the home
    iii. Men can change nappies too

c. Mindsets are beginning to shift, but still not fast enough
    i. We cannot overcome this by making speeches
    ii. But can encourage greater shared responsibility in child raising and parenting
       1. Introduced childcare leave in 2004 which can be claimed by either parent – will extend this from two to six days per year
       2. In addition, will now introduce one week of unpaid infant-care leave per year – also can be claimed by either parent, until the child turns two

Second, work-life balance

a. Flexible work arrangements are crucial to make it easier for women to both work and have children
b. Family-friendly employers play an important role
    i. If they are supportive and understanding, it will make a big difference to their female staff
    ii. Can do a lot with some imagination
       1. Many provide space for nursing mothers to express milk
       2. Others allow telecommuting, and very flexible hours, so long as the work gets done
       3. One catering company equips its duty officers with Blackberries and walkie-talkies, so they can enjoy weekends with their families and still coordinate catering services
    iii. Will recognise and thank such employers publicly

c. Government can help share the burden on employers
    i. Maternity leave – extended by four weeks in 2004 (paid for by government), to 12 weeks
       1. Welcomed by many mothers
       2. Will extend by another four weeks, e. from 12 to 16 weeks, also paid for by government
       3. Can claim anytime in the year from the birth of the child

d. Ultimately parents must make a personal choice
    i. Work 110%, or set aside time for other priorities?
    ii. Each has to decide her own point of balance
    iii. Recall own experience
       1. My mother came home everyday to have lunch with the children
       2. She avoided going out for evening functions
       3. It meant taking on less work as a lawyer, but she decided that the children were more important
    iv. Today harder to do this
       1. “Office” hours are longer
       2. The pace is more intense
       3. But still must maintain a balanced, fulfilling life

e. Work-life balance also applies to the children
    i. Many parents complain about the stress on their children, especially because of education system
    ii. We have trimmed the school syllabi – teach less, learn more
       1. But parents still send children for tuition, enrichment etc
       2. Feed them chicken essence before exams
    iii. Some pressure is inevitable
       1. Part of Singapore’s competitive spirit
       2. Other East Asian societies are even more ruthlessly competitive
       3. But we should manage it, and take it in our stride
    iv. Natural for parents to worry about children, and encourage them to work hard and do better
       1. But also need to understand them – each child has different aptitudes and talents
       2. Give them space to grow up
       3. They will learn and mature in their own time

Third, the financial cost

a. Significant expense to bring up children
    i. Direct child-raising expenses, e.g. milk-powder, pram, paediatrician etc
    ii. Also a high opportunity cost for working mothers – forgoing income at work or sacrificing their careers
    iii. Hence often the professional women who say that it is expensive to bring up children
b. Financial considerations cannot be the motive for having children
    i. Many couples are indignant at this suggestion
    ii. But right for us to help lighten the burden of those with children
       1. Hence the Baby Bonus and tax incentives
    iii. We will enhance these schemes
       1. Baby Bonus – improve it for first-time parents
       2. Tax incentives – will do more, to encourage mothers to work

Fourth, early childhood arrangements

a. Major concern of parents, especially if both are working
b. Critical period – from birth to 6 years (before formal schooling)
c. Most families take care of children at home, e. with grandparents, extended family, or maids
d. But many working mothers depend on formal childcare arrangements
    i. 25% of children are in childcare centres
    ii. More popular centres have queues
    iii. Visited one NTUC Childcare Centre in Jurong
       1. Talked to some of the parents
       2. They were very happy to put their kids there
          a. Good growing-up environment for their children
          b. Give them peace of mind while they are working
    iv. So we will build up the childcare sector
       1. More centres – 200 in 5 years, or 20,000 places
       2. More affordable – significantly increasing subsidy per child
       3. Enhance quality
          a. Train and provide scholarships for childcare teachers
          b. Build up some childcare centre operators to set higher benchmarks for the industry

e. Most parents send their children to kindergarten
    i. Early childhood education is important
       1. Helps prepare children for school
       2. But don’t make it more stressful for them!
    ii. Broad range of kindergartens
       1. Top-end – they can take care of themselves
       2. Mass market for lower- and middle-income families, like PCF
          a. Standards have gradually improved
          b. But we need to do much more
    iii. Government already supports those that meet MOE criteria
       1. So far support is quite small
       2. We will increase this substantially, on condition they upgrade themselves
          a. Not just better trained staff
          b. But improving the whole system – curriculum, supervision, staff ratios

f. All these improvements will take a few years
    i. Cannot be done overnight
    ii. But this will give our children better care in their critical early years
    iii. Give them a more equal start in life
    iv. Also ease the concern of many parents

Two more measures that do not affect a lot of people, but I think we should do

a. Couples who want to have children but cannot conceive
    i. Some go for IVF treatment which is expensive
    ii. We will offer financial support to lower the cost
b. Those with many children
    i. We will extend incentives like tax reliefs, childcare subsidies etc. to the 5th and subsequent child
    ii. Numbers are very small, but I hope the incentives will encourage those who can afford it to have more

Measures add up to a substantial package

a. Around $700 million per year – almost double what we are spending today
b. Altogether, will spend about $1.6 bn or 0.6% of GDP
c. DPM Wong Kan Seng (in charge of our population policies) will give the full picture later this week

Package will make a difference to many couples

a. But I cannot guarantee that it will solve our problem
b. This is a deep problem, which we will have to revisit periodically
c. Finally, it is about mindsets, personal choices and values
d. Please put emphasis on marriage and family, and make these your priorities in life

Our Future

Our children will grow up in a completely different world

a. We have to prepare them and our society for this

One of the biggest changes that will affect us– the internet

a. New media is pervasive and fast-moving
b. Everyone is plugged in and connected
c. People are blogging, engaging one another, organising themselves online, and doing politics online
d. From “Grassroots” to “Netroots”
e. Happening worldwide

America

a. Current US election campaign
b. John McCain is present on the internet, even though he says he does not know how to use a computer (Slide 1)
c. Barack Obama – internet is a key part of his campaign
    i. Home page – “Change we can believe in” (Slide 2)
    ii. Younger Americans are highly energised
    iii. They are helping him to run the system
       1. e.g. Chris Hughes (24, a founder of Facebook) joined Obama’s campaign
       2. Using Facebook technology to link up, mobilise and organise supporters all over the country (Slide 3)
    iv. Raising funds online
       1. “Donate now” (Slide 3 – zoom in)
       2. More than 1.5 million people have donated – small amounts individually, but cumulatively a huge boost to his campaign
    v. Rebutting attackers on “Fight the Smears” (Slide 4)

Korea – world’s most wired country

a. Internet has had a major impact on Korean politics
b. Empowered new groups
    i. e.g. mass access to the internet helped President Lee Myung-bak to win resoundingly in Dec 2007
c. But also created rapidly changing moods in the population
    i. Within a few months, President Lee was under siege
    ii. Mass demonstrations and protests (Slide 5)
d. One issue – mad cow disease
    i. Fanned by rumours on the internet
       1. “94% of Koreans have a gene which predisposes them to mad cow disease”
       2. “Cow products are used to make pampers, which gives babies who wear them mad cow disease”
    ii. Videos and pictures circulated online and worked people up (Slide 6)
e. President Lee calls it “infodemics”
    i. Anonymous false information on the internet
    ii. Creating discontent and unhappiness which spread like an epidemic in the real world
f. One Korean newspaper called this “mad cow madness”

Malaysia

a. Internet has become an active space for information and engagement
    i. Lively debate and serious contributions, together with more doubtful stuff
       1. On blogs and chatrooms
       2. On alternative news sites, e.g. Malaysiakini (Slide 7)
    ii. Politicians themselves participate actively in cyberspace
       1. Cyberspace personalities entered politics, e.g. Jeff Ooi
    iii. In recent elections
       1. Mass of materials circulated through blogs, SMS and YouTube
       2. Public went into cyberspace to get what they could not get in mainstream media
       3. Opposition campaigned widely in cyberspace (Slide 8 – website of Parti Keadilan Rakyat)
       4. BN was also present, although not to the same extent (Slide 9)

b. Election was not just about the new media
    i. It was about real life politics
       1. Opposition raised many hot issues in ceramahs
       2. e.g. rising costs of living, poor public service delivery, and perceived inequalities in the government’s policies
    ii. But these issues were picked up in the new media, and amplified through viral distribution

Even in China

a. World’s largest number of internet users – more than America
b. After Sichuan earthquake, netizens mobilised to collect funds and show support (Slide 10)
c. Leaders are engaging on the new media
    i. President Hu Jintao held his first web chat recently (Slide 11)

In Singapore too, the new media is a big thing

a. Talked about this two years ago
b. We have moved further on since then
    i. More than 80% of homes have broadband access
    ii. 6 million handphone accounts – more handphone accounts than babies per person!

c. Young people are totally immersed in this medium
    i. Reading print newspapers less
       1. Getting information and discussing issues online, e.g. ST, CNA and omy websites
    ii. Organising interest groups
    iii. Writing their own content and sharing it with others

d. All this has changed how the Government works
    i. Many services online, 24/7
       1. From passport renewals to incorporating a new business
    ii. Communicating with and engaging Singaporeans online
       1. Not just putting out video clips (Slide 12)
       2. Two way process
    iii. REACH
       1. At the forefront of this
       2. Lively exchanges on its website – blogs, online chats etc (Slide 13)
       3. Also active participation on Facebook
       4. Lots of discussion on cost of living, ERP, babies etc – useful feedback for this NDR (Slide 13 – zoom in)

It will also change the way we conduct our politics

a. We have to adapt, get used to it, and turn it to positive effect
b. Use it to inform, educate, debate and engage
c. Each of us must learn how to be savvy cyber-citizens
    i. Be discerning about what you see on the net
    ii. Distinguish between what is true and false
    iii. Set prudent limits to flag problems and avoid excesses
    iv. Participate actively but do not get swept away
    v. Do not catch mad cow madness

d. Our rules governing politics must keep up to date too

First, party political films

a. Presently totally banned
    i. Politics is a serious matter
    ii. Voters should consider issues rationally and coolly, and make considered decisions on their future
    iii. Concern that films are an emotive medium
       1. Impact of watching a film is different from reading something in cold print
       2. It can stir up passions and cause people to get carried away
b. Concern still valid, but an outright ban is no longer sensible
    i. This is how people communicate on the web, and in daily life
    ii. Many make videos, e.g. the clips you saw earlier
    iii. Even my NDR has become a multi-media event
       1. The speech itself
       2. After the speech, many video and blog responses
    iv. Anyone can do this, anytime, anywhere
       1. Let me show you
          a. I have a handphone here
          b. It has a software loaded called “Qik”
          c. Let me run the programme
          d. Turn on the video camera
          e. Now I am recording a video of you “live”
          f. Stream this onto the PMO website
          g. After a short delay, you will see yourself on the net
          h. Wave – you’re on candid camera!
       2. Just like that, I have made our first (non-political) video

c. So we must allow political videos, but with some safeguards
    i. Some things are obviously alright – factual footage, documentaries, recordings of live events
    ii. But some things should still be off limits – political commercials, partisan material, footage distorted to create a slanted impression
    iii. In between there will be some grey areas
       1. But we can deal with this
       2. e.g. for non-political films, censorship and classification standards rely on subjective judgment, yet we have worked out a workable system
       iv. Ovverriding consideration – preserve integrity and quality of our political discourse

Second, rules for political material on the internet during elections

a. Current rules settled before last GE
    i. e.g. podcasts and videocasts are not allowed
    ii. Most people cannot post election materials – only limited to political parties, candidates and their agents

b. By next GE, 5 years will have passed     i. Cyber years are like dog years, so 5 years in cyberspace, is like 35 years in the real world!

c. We must update these rules
    i. Liberalise and allow people to participate more actively and flexibly, e.g.
       1. Allow podcasts and videocasts
       2. Allow others to post election materials too
    ii. But maintain accountability and responsibility

Have sketched out my views broadly

a. Advisory Council on the Impact of New Media on Society (AIMS) led by Cheong Yip Seng is studying these issues in detail
b. Look forward to their recommendations

Beyond cyberspace, politics is about people’s lives in the real world

a. Have to get a direct feel for the person – Can he be trusted? Does he care for people? Is he capable?
b. Have to talk, argue, persuade, and work together for what we believe in
c. Cannot do this purely online
d. We do this all the time
    i. At grassroots sessions, dialogues, meetings etc
    ii. Small society – possible for us to interact and get to know one another in real life

e. A few restraints – cannot afford to take chances with race and religion
f. Even then, Singaporeans are free to do nearly everything

One remaining restriction – outdoor demonstrations

a. Still not allowed
    i. Concern is law and order, and security
    ii. One incident could undermine our racial harmony, and confidence in Singapore. b. Concern is still valid, but total ban is too rigid
    i. We should find ways to allow people to express themselves safely
    ii. Speakers’ Corner at Hong Lim Park is a model
    iii. Well defined location, accessible, safe
   iv. Not many speak there, but anyone can who wants to
c. We should allow outdoor public demonstrations, also at the Speakers’ Corner
    i. Still subject to basic rules of law and order
    ii. Still stay away from race, language or religion
    iii. We will manage with a light touch
       1. No need for Police to be involved
       2. NParks has agreed to be in charge of Speakers’ Corner

Overall thrust of all these changes

a. To liberalise, widen the space for expression and participation
b. Encourage more citizens to engage in debate, to participate in building our shared future
c. We will progressively open up our system
    i. Much more open today compared to ten or even five years ago
    ii. Will continue to feel our way forward
    iii. Cannot progress just by copying others
    iv. Must think through our problems ourselves and find the right path for Singapore

But please remember that even in the cyber-age, some things do not change

a. In 50 years’ time, Singapore will still be a little red dot
b. To thrive as a nation, we will still need the cohesion to stay united, the ability to outperform others, and the will to survive and excel, and occasionally win medals
c. That means:
    i. A hardworking and well-educated population
    ii. A capable and effective government
    iii. Outstanding people at all levels, totally committed to Singapore
d. Then however the world changes, our children will still have a bright future

Before I leave this section on new media, I have one more demonstration

a. Hello, Team Singapore
b. [Eng Liang will give an update]
c. Thank you. All of us here in Singapore are behind the team and cheering you on from home. We salute the men and women of Team Singapore, especially our paddlers Jiawei, Tianwei and Yuegu. All of you have done us proud and carried our flag high

Conclusion

Have discussed some key issues that affect our future

a. Immediate concerns like inflation and cost of living
b. Long-term issues like living graciously, raising families and opening up our society
c. Must get these right to keep on growing our economy, year after year

Sometimes, people criticise us for over-emphasising economic performance, because GDP growth, employment, productivity, etc. are all just so many statistics

a. In fact, growth is critical
b. It gives us the resources to solve our problems
c. It creates opportunities
    i. For our workers to secure better jobs
    ii. For our young to receive a first class education
    iii. For all of us to improve our lives and fulfil our dreams

d. Growth is not just abstract numbers
    i. It is changing our people’s lives for the better
    ii. It is about the Singapore story, as lived in the lives of each one of us

Older generation of Singaporeans have experienced this

a. e.g. Mr Arumugam Jeyapal – working in PSA (Slide 1)
    i. Only had two years of vocation training after his PSLE
    ii. Started out as a prime-mover driver, earning $250 a month
    iii. Worked his way up, and now is a mentor to yard-crane operators, earning $3,000 a month, and is active in the SPWU
    iv. Upgraded from 3-room to a 5-room HDB flat
    v. Three children are also doing well in different fields – a soccer coach, a lawyer (DPP), and a daughter studying in NIE to become a teacher
    vi. Now 58, he says, “I have lived the Singapore story…I am grateful for what the Government has provided”

Middle-aged Singaporeans too

a. e.g. Mdm Lim Hui Bin, wafer fab specialist (Slide 2)
    i. Quit her job in 1999 to help daughter who was not doing well in school
    ii. When her daughter’s studies improved, she returned to work full-time as a machine operator at Seagate – was on night shift and had to work OT to supplement her low pay
    iii. Friends told her that she could earn more in a wafer fab
    iv. She resigned to find a job in the wafer fab industry but had no skills and no “lobang”
    v. Responded to an ad by NTUC’s Employment and Employability Institute (e2i) to equip herself with relevant skills
    vi. Joined STMicroelectronics as a wafer fab specialist, earning $1,400 a month, nearly one-third more than before
    vii. At 45, she has made a successful career switch to a new job with brighter prospects; daughter is now at Singapore Poly studying to become an Optometrist

Young Singaporeans are writing their own Singapore stories

a. Enjoy far more opportunities than what their parents ever did
b. e.g. Crystaline Tan, Neng Abdul Rashid, David Aw – three SMU graduates (Slide 3)
    i. Fresh out of school
    ii. Recruited by Fullerton Financial Holdings (a Temasek company)
    iii. Now happily working in Dubai
    iv. They are taking risks, venturing out, and seizing opportunities, and launching off on exciting international careers

c. e.g. Muhammad Fadzuli, computer games enthusiast (Slide 4)
    i. Addicted to computer games as a boy
    ii. Did a Diploma in Entertainment Technology in Nanyang Poly and topped his class
    iii. Applied to Carnegie Mellon University
       1. They gave him advanced standing
       2. Waived requirement for a Bachelor’s degree
       3. Allowed him to pursue his Masters directly
    iv. Won an MDA-ST Electronics scholarship
    v. Now on 3-month attachment at Disney (a collaboration with the university) helping to develop a new computer game

d. e.g. Brenda Tan, marketing manager (Slide 5)
    i. Was “playful and lazy” in school
    ii. O-levels results were not good
    iii. Went to ITE, and then to Ngee Ann Poly for a Diploma in Business
    iv. Got a job in Citibank as a tele-sales officer
       1. Did well, was promoted, and posted to Malaysia to help set up a new unit there
       2. Became manager of the unit, overseeing a staff of 80
       3. Now back in Singapore and progressing in her career
    v. She says, “ITE has given many opportunities to people [like me] who are less academically incline..this is something unique about our education system and about the openness and acceptance of our society”

This is what we mean when we talk about growth, about investing in our people, about thinking long-term

This is what drives us to do the best for Singapore, whatever the uncertainties and difficulties

a. Let us look beyond our immediate problems
b. Work hard to grow our economy and transform our nation
c. Then we will create even more extraordinary opportunities for a new generation
d. Together, our children will write more glorious chapters of the Singapore story