Grassroots organisations and leaders have played a major role in the development of independent Singapore, especially in promoting racial harmony and social cohesion. During the turbulent 1960s, they helped the Government to carry the ground in its "life-and-death" struggles against the communists, communalists, secret society members and gangsters. In the 1970s, grassroots organisations and leaders assisted the Government in easing the resettlement of our people into new HDB towns and public housing estates. And in the mid 1980s, they rallied the citizens to overcome a major economic recession. Throughout the past 33 years, grassroots organisations and leaders have also promoted the well-being of their respective constituencies, especially in the provision of public amenities and environmental services.

Today, there is a comprehensive network of grassroots organisations throughout Singapore. There are more than 20,000 volunteers serving them. For many grassroots leaders, their service is a labour of love. Some of them have soldiered on for more than 30 years. Their commitment, dedication and public spiritedness have inspired other Singaporeans to join them. I would like to take this opportunity to express the Government’s appreciation for the significant contributions made by the grassroots leaders. We have a more united, harmonious and stable country as a result of their tireless efforts.

As we enter a new millennium, grassroots organisations and leaders have to distinguish themselves from their earlier roles in nation building. They have to deal with new challenges. Their ability to help build national consensus to overcome these challenges will determine whether Singapore climbs to greater heights or falters. National cohesion is essential for us to face a complex world driven by intense economic competition, new knowledge and advanced technology. Changes affecting our daily life are likely to occur much more rapidly than what we have experienced till now. They can loosen our national cohesion.

Grassroots organisations exist to serve the community. The more their activities are connected to the needs of the community, the more relevant they are to the daily life of our citizens. Such activities help to bond Singaporeans into one united nation. They promote a sense of belonging and community spirit. These are essential ingredients in the development of a cohesive society. We have passed the stage of merely providing physical infrastructure and accumulating wealth. In building national consensus, we can do well to shift our focus from "hardware" to "heartware". Winning the hearts of our people is just as important as giving them a tangible stake in Singapore. Let me give two examples to illustrate what grassroots leaders can do to show that we have a heart even in the most trying times.

The first example is the outreach programmes organised by the Community Development Councils (CDCs) in Ang Mo Kio-Cheng San, Tanjong Pagar and Marine Parade. In Ang Mo Kio-Cheng San, 200 volunteers would have visited almost 5,600 families living in one and two-room HDB flats in their respective districts by the end of this month. Many Singaporeans living in these flats are retired workers with low education. Most are ignorant of the various schemes which can help them in their times of need. The volunteers are providing these households with the necessary information on where they can obtain help should they have problems. Such an outreach programme also enables better-off Singaporeans to learn about the difficulties faced by some of their less fortunate fellow citizens and to lend a helping hand. These activities will show that we care about others.

The second example is the Good Neighbours’ Week, jointly organised by the Sembawang-Hong Kah CDC and 28 Residents’ Committees. This special "Week" was preceded by a search for exemplary neighbours. Such a project not only encourages greater interaction among residents living in the same neighbourhood but also promotes community bonding and national cohesion. When residents mingle, they get to know each other better. Through the interactive activities and games organised, the residents would be able to identify with one another and give mutual support in times of need. An estimated 28,000 residents in the Sembawang-Hong Kah constituencies are participating in the Good Neighbours’ Week which ends today.

These two examples of civic-mindedness and good neighbourliness show the scope of work grassroots leaders can do. I am aware that some grassroots organisations have been active in such programmes for some time. But given the difficult times ahead, it is even more necessary to emphasise the heartware aspect of grassroots work.

I have tried to bring about a kinder and more gracious society in Singapore. While we need discipline, firmness and toughness to survive as a nation, we have to balance them with graciousness, kindness and a generous spirit. Without graciousness and generosity, we are no more than wild men and women living in an economic jungle where only the fittest survive and the mean eat up the weak.

No government can mandate people to be kind and gracious. However, Ministers and leaders in society can set the example. By volunteering our efforts and time to help our neighbours and even total strangers, we are showing our hospitality, magnanimity and unselfishness for others to follow.

As the pace of life becomes even quicker, such public spirit and volunteerism are important elements to strengthen our social fabric. The CDCs have taken the lead in getting volunteers into more community-related activities. But individual resourcefulness and initiative are important. The grassroots leaders of today are better educated than their predecessors. They must not wait for the cue from the Government or a nation-wide campaign to launch any outreach programme. Instead, the grassroots leaders should innovate and create new programmes for their organisations. I am sure they can find more imaginative and interesting ways to care and help fellow citizens in need.

I hope this excellent Clubhouse will serve as a centre for nourishing such creativity and innovation. You should use the function rooms, theatrette, computer equipment, reading materials and brain power concentrated here to do more educational and training programmes. Singaporeans expect their grassroots leaders to be well-informed on current affairs, regional developments and even technological advances like IT. The challenge is for The Grassroots’ Club to nurture such leaders through its activities.

The economic downturn in the region has affected Singapore adversely even though we have strong economic fundamentals and good governance. This shows the interdependence of our economy with the region. Parliament has just endorsed the Government’s strategy to restore Singapore’s competitiveness, to minimise job loss and to maximise our attractiveness as an investment destination. I know that the wage and employer’s CPF cuts are painful for most Singaporeans. The Government took a long time to take these hard decisions. In the end we decided that these painful measures are necessary, not just to overcome the present challenge but also to ensure our long-term economic survival.

The cost-cutting package is not a miracle cure to get us out of recession. But decisive cost-cutting measures will certainly improve the viability of manufacturing production and business operations in Singapore. It will also buy some time for our companies to rationalise their operations and expand into new markets. Most importantly, a decisive cost-cutting strategy forged through national consensus is Singapore’s strong signal to the world that we are willing to take bitter medicine when the situation calls for it. This show of national cohesion will boost investor confidence in Singapore.

But still, how quickly the Singapore economy recovers and local businesses regain their profitability is not totally within our control. It will depend largely on the regional environment and other external factors. Until the region recovers and our key export markets resume their growth, the Singapore economy will not bounce back quickly. This is the reality that we must recognise. Hence, the regional economic crisis is also a critical test of our national resilience and cohesion.

I believe we will emerge from this test stronger. Our standard of living may take a dip, but it remains comfortably high. For those who may have lost their jobs, they will be helped to find another job. Their difficulties will be temporary. East Asia has many long-term strengths. It will recover. Instead of wringing our hands, we are beefing up our own long-term competitiveness and positioning Singapore’s economy and workers for the next wave of growth.

The grassroots organisations and leaders can help ease the anxieties of our people by explaining to them the challenges facing our country and our agreed collective response. Use the present economic crisis to bond the people.

The Grassroots’ Club is a token of our Government's appreciation to our grassroots organisations and leaders. It is also to remind us constantly of the role and obligations of grassroots organisations and leaders in the development and progress of our country. This Club must strive to inspire more new ideas and spread more heartware to meet the new challenges facing Singapore.

It is now my pleasure to declare The Grassroots’ Club open.

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