I am honoured to be here to lay the foundation for this NTUC building, which will be the new home for the labour movement in Singapore. This is a good occasion to reflect on the role that NTUC has played in Singapore’s progress. We have gone through many ups and downs since independence. Our economy is currently facing some difficulties. Unemployment is at a record high and expected to get worse before it gets better. In such a climate, it is easy to forget where we have come from and how we have got to where we are today.

One of the major pillars of Singapore’s success has been the NTUC and our workers. Together, they have contributed significantly to Singapore’s progress. Our economy is much larger and more diversified than it was over 30 years ago. Our labour force is much better educated and trained. It has been consistently rated as one of the best in the world. Working in partnership with the government and employers, our workers have created a stable labour climate. This, in turn, has attracted billions in foreign investments, which provides employment opportunities and leads to sustained economic growth.

In the latest Global Competitiveness Report 2001-2002 published by the World Economic Forum last month, Singapore is ranked 4th in the global growth competitiveness ranking and 10th in current competitiveness ranking. Overall, Singapore’s competitiveness ranking has slipped marginally from the previous year. But a closer look at the detailed report shows that Singapore has come up tops in several labour-related areas, namely labour-employer relations, unions’ contribution to productivity, and the strong co-relation between pay and productivity. Collectively, these factors re-affirm the high quality of our workforce and the attractiveness of Singapore to foreign investors.

Further affirmation of the competitive strength of our workforce comes from The World Competitiveness Yearbook 2001, published by the International Institute for Management Development, that ranked Singapore as the second most competitive economy. The same report ranked Singapore second for productive labour relations and employees training.

These international assessment reports are useful as they benchmark us against other competing economies. It is valuable feedback for us. But, even as we take this positive feedback as an indication that we are on the right track, we cannot afford to rest on our laurels. The reports that mentioned our competitive strengths also highlighted areas of concern. For example, there is a lot more we can do to improve our labour productivity. Our competitors are catching up rapidly; some have already caught up. If we do not stay ahead of competition, we will fall behind.

Looking back at our path of economic growth in the last few decades, we can see that it has not been entirely smooth sailing. We are not immune to the changes in the external environment -- the oil shock in the 70s, a deep recession in the 80s, the Asian Financial Crisis in the 90s, and now, another downturn. We pulled through the past difficulties, and I have no doubt, that we will do so again and emerge stronger and more competitive.

I say this with confidence because of one key success factor that we have nurtured: the strong tri-partite partnership between the labour movement, employers and the government. In the mid-80s economic recession and the Asian Financial Crisis, workers tightened their belt and accepted CPF cuts. The government introduced measures and policies to stimulate the economy, and companies looked for ways to further lower costs. NTUC, through its co-operatives, came up with relief packages to help workers and Singaporeans cope with the costs of living.

The new NTUC Building, when completed in 2004, will be an icon of the labour movement, and an important and visible symbol of workers’ achievements. In fact, when Prime Minister Goh announced more than a decade ago that the Government would build a new HQ for NTUC by setting aside a prime parcel of land and providing grant, he had envisioned the new HQ to be in the heart of the new city area. This was in recognition of the key role that the labour movement has played in Singapore’s success, together with employers and Government. As Chairman of SLF, I am happy that SLF would be doing its part for the labour movement by developing NTUC’s new building.

I am especially honoured that my first official duty is to lay the foundation of the new building. I look forward to seeing all of you here again in two years time, not under this temporary tent, but in the new home for the labour movement in the heart of the new Singapore downtown.

******