The Year of the Snake turned out to be a troubled one. The global economy went into recession, and the US was attacked by terrorists. These events sent our economy into the worst year of decline since 1964. We also uncovered a terrorist plot to blow up various targets in Singapore.

I hope the Year of the Horse will be more propitious. The US economy is showing signs of recovery. Consumers are more optimistic. The financial markets have priced in this brighter outlook, and rallied. The US has defeated the Taliban and disrupted the Al Qaeda terrorist network.

I would, however, caution against being excessively sanguine about prospects of an early economic recovery for Singapore. In the US, some economic indicators are picking up, but others are not. Moreover, the EU economies remain sluggish, and Japan continues to be weighed down by structural problems. Sustained global economic recovery might still be some way off. For Singapore, MTI has revised its growth projection for 2002 only slightly upwards, to 1-3%.

The most pressing concern for us, however, is not the economy. The recession, though painful, is a short-term problem. We have the resources to ride it out, while the Economic Review Committee finds ways to meet our longer-term challenges.

Our greater worry is the threat to our security, and to our racial and religious harmony, following the discovery of terrorist activities in our country.

Twelve of the thirteen detained Jemaah Islamiah (JI) terrorists were Singaporean, but their plot was not indigenous to Singapore. It was foreign-inspired. They were mere foot soldiers of foreign masterminds. Their handlers came from outside to teach and direct them to inflict terror in Singapore.

So long as global and regional terrorist networks continue to exist, Singapore will continue to be exposed to terrorist activities. We should therefore be vigilant, but we must still go about our lives normally. Our security agencies will stay on top of the situation.

Should a terrorist attack in Singapore by some extreme group ever succeed, it would do untold harm. Not only would it cause the loss of life and property, but far worse, it would result in profound misunderstanding and distrust between the different communities.

All Singaporeans have a responsibility to prevent such a crack in our inter-communal solidarity from happening. In the JI episode, non-Muslim Singaporeans must not misconstrue the evil deeds of the JI operatives as the teachings of Islam. The JI terrorists are a small group of misguided extremists. They are not products of our madrasahs, nor were they active members of our mosques. Our Muslim community has condemned, in no uncertain terms, the motives and actions of the JI operatives.

There is hence no basis for Singaporeans to look upon our fellow Muslim citizens any differently from before. We should not allow suspicion and distrust to creep into our relations with our Muslim colleagues, friends and neighbours. This Chinese New Year, go out of your way to invite them to your festivities. Muslim Singaporeans should accept when they are invited.

Muslim Singaporeans should not be overly sensitive and suspicious that they are being discriminated against. The JI operatives were arrested because their actions threatened Singaporean lives, and seriously undermined the interests of our nation. They were not arrested because they were Muslims. Islam is not under threat. Muslims here can freely practise their faith within the context of our multi-racial, multi-religious society, like other Singaporeans. The Government guarantees that Muslim Singaporeans will be protected, and their interests looked after.

In short, let us, Muslims and non-Muslims, respond in a calm, sensible and constructive manner to this threat to our shared well-being.

Let us also turn this JI episode into an opportunity. We should act now to build confidence, strengthen friendships and develop trust between Singaporeans of different races and religions. This will help us to contain the fall-out from any future terrorist acts by militant elements from any of our communities.

To succeed in consolidating ties, moderates in all communities must speak up against, and disown, extremists who are out to undermine our society. They should repudiate those who join clandestine groups and mount terrorist actions, as well as those whose radical views and agitation will sow discord between the communities. Unless the moderates isolate and condemn the radical minority, the radicals will gradually gain courage and legitimacy. Then each community will begin to distrust the other.

We enjoy racial and religious harmony in Singapore. Do not let September 11, the JI arrests and radical fringe groups destroy these precious foundations of our society. Let us build on them to achieve our dream of a successful, multi-racial, multi-religious Singapore "family".

I wish all Singaporeans a happy and prosperous Year of the Horse.

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