Singapore Government Press Release, Media Relations Division, Ministry of Information, Communications and the Arts, MITA Building, 140 Hill Street, 2nd Storey, Singapore 179369

Tel: 6837-9666

Speech by Minister Mentor Lee Kuan Yew at the Tanjong Pagar Chinese New Year Dinner at Tiong Bahru CC, 10 February 2006

Singapore has done better than expected in 2005 with 6% growth, over 110,800 jobs created, the highest in five years, retrenchment down, unemployment has now come down to 2.5% in Q4 2005. The forecast for the first half of 2006 is also good. The restructuring the PAP Government did in 2003 and 2004 led to this outcome.

After the 9/11 attack on New York and the Pentagon, we expected lower economic growth with the world fearful and reluctant to travel because of terror attacks, and transportation of goods slowed down because of security checks. We anticipated that 2002 and 2003 would see slower growth and insecurity would follow. Hence PM Goh Chok Tong called early elections to meet the looming problems. He led the PAP to an overwhelming victory in Nov 2001 winning 75.3% of votes cast. PM Goh used the next 3½ years to restructure the economy.

We are well placed for future growth. The government has been able to attract new investments without reduction from pre-9/11 levels.

The IMF, World Bank and Asian Development Bank forecast that East Asia region will have the highest economic growth rates. China and India are two great power houses that will drive Asean for the next few decades. We have that extra boost of Comprehensive Economic Cooperation Agreement with India, Japan-Singapore Economic Partnership Agreement with Japan, FTAs with the US, Australia/New Zealand and close links with China. And the Gulf oil states are building up fast and have invited us to compete with the Europeans and Americans for their projects. Several of our companies have already won contracts in the Gulf states. So we are well positioned for many years of growth.

To optimise our opportunities we must retain the vigour of our multi-racial-lingual-cultural-religious society. We have advantage of being all educated in English in an age when English is the common language of the world and the Internet. However we must not lose our basic strengths, the vitality of our original cultures and languages. We have to invest abroad to grow. China and India are being transformed. Indonesia also is showing signs of recovery. Our students must prepare themselves for careers in these countries. Not all can be equally good in two languages, English and the mother tongue. But I believe 5-10%, those who are keen and motivated, can be effectively bilingual and bicultural.

People all over the world want to learn Chinese so many schools and universities in America and Europe are teaching Chinese. Now some Indian and Malay parents want their children to do Mandarin in schools because that would be useful for their children.

MOE allows non-Chinese students, Singaporeans and foreigners, to take Chinese on a case by case basis. The children can do so if they have been prepared from young, in kindergarten, to study Chinese. They will otherwise find it difficult to take the same language examinations as Chinese students.

Few students will choose to take Chinese for examinations instead of their mother tongue. However, MOE will also promote Chinese as a conversational language for non-Chinese students in more schools, not as an examination subject. This will give their children the ability to listen and to speak basic Mandarin. MOE will also offer Malay as a conversational language for non Malay students.

We must make an effort to have a continuing flow of our own Chinese, Malays and Indians who are well versed in their mother tongues and cultures. They are the core strength to take charge of our press and TV, schools and universities and not depend on only imported talent. They will help us maintain our bilingualism and so retain our cultural and linguistic heritage. It is this heritage that gives us the self-confidence and self-pride necessary for achievement.

The Way to the Future

The world is in a phase of rapid change. Advances in technology have connected peoples across all continents, changed their economies, patterns of work, lifestyles and even cultural values. Ships, aircraft, satellite television and the internet have spread knowledge and wealth, but also diseases and misfortune.

Two huge societies, China and India are undergoing transformation. So are we in Singapore. The present generation of leaders in their 40s and early 50s, has to chart the way forward, educate and prepare our young for the future. Because we anticipated a good many problems before they descended upon us, we avoided serious dislocations to our economy that could have lead to unemployment, deprivation and despair, resulting in demonstrations, protests, riots and disorder. The PAP must always be open to new ideas and not be stuck to any dogma or ideology. Realism and pragmatism are necessary overcome new problems. Only those basics that have proved sound in the past should not be changed unless absolutely necessary. Amongst them are honesty and integrity, multi-racialism, equality of opportunities, meritocracy, fairness in rewards in accordance with one’s contribution to society, avoidance of the buffet syndrome where for a fixed price you can take or eat as much as you want. That is why welfare and subsidies destroy the motivation to perform and succeed. Where we must help, give cash or assets and leave it to the individual to decide how he will spend it. When people become dependent on subsidies, and the government can no longer afford and has to cut subsidies, people riot. See how difficult it is for Indonesia to cut subsidies on oil and food.

We have avoided these subsidies. When we have to help we give people cash and assets, help them buy a flat, increase their net worth through shares or cash paid into their CPF. They decide how to spend it. Then they make prudent decisions and avoid waste. For fundamentals like education and health, where we subsidise, we require co-payment so that people recognise the real costs and do not waste.

Those governments that provide free medicine and free education, have run into financial troubles. Britain’s free National Health Service is in costing more and more, for ever poorer service. Britishers are allowed to go to France for treatment paid for by the British government.

How to Win Elections

Opposition party, the Workers’ Party supported by the Singapore Democratic Alliance propose giveaways – subsidies to the unemployed, the disadvantaged, the sick and so on. How to pay for them?

Simple: the Opposition has proposed abolish the Elected Presidency. The country’s reserves can be used. Abolish GRCs and have all single constituencies so more opposition candidates can win. Since Malays and Indians cannot win in single constituencies, because there are no Indian majority constituencies. They have proposed to cancel race quota in HDB estates. Then Indians and Malays can re-congregate and there will be Malay and Indian majority constituencies. Then we will be back to the bad old days of when Malays, Chinese and Indians lived in separate kampongs or villages, go to different shops, hawker centres and markets and their children to different schools. This was not how they presented their proposals, but this will be the outcome.

The ministers are right to challenge these ideas or some people may be misled into believing that these are possible solutions.

How is the opposition to make a breakthrough? Suppose today I am in the opposition against the PAP, what would I do? I would fight in a single constituency and win, as I did in 1955 in Tanjong Pagar. Then I will establish myself as a serious credible alternative leader which I did from 1955 to 1959 by debating in the Legislative Assembly and by working for the trade unions and grassroots organisations.

After proving myself, I will persuade 4 or 5 good persons to fight a GRC in a team that is as good as the PAP’s. After winning 3 GRCs I will get more good people to join me and offer Singapore a credible alternative government. Opposition leaders, Mr Low Thia Khiang and Mr Chiam See Tong are well known MPs. They can contest GRCs if they can now find 4 or 5 candidates to be a team as good as the PAP’s. Mr Chiam seems to be on this track when his party won three seats in 1991. But Ling How Dong and Cheo Chai Chen did not impress their voters and were both voted out for Bukit Gombak and Nee Soon Central in the next elections. Unfortunately Chiam did not present the voters with a credible alternative and hence did not grow his party.

There is no easy way to win power or stay in power. If the PAP does not renew itself regularly with fresh blood from the younger generation, stay honest and clean, upgrade the economy and improve the education and skills of our people, to have economic growth and bring a better life to people, it will be soon begin to lose seats and eventually be defeated and ousted. So the PAP accepts the realities that the world is changing and we have to adapt ourselves to this different world. We are not stuck in any policy, theory or ideology.

To win, other parties must do the same - get good men to join them, men who can craft policies better than the PAP’s. After winning a few seats, prove in Parliament that their proposals are sound, that they can run their constituencies better than PAP constituencies. Then they will increase their seats in Parliament and eventually take over. There are no simple shortcuts such as abolishing the EP, GRCs, grassroots organisations, CDCs, MCs, CCs, RCs, or introducing proportional representation. There is no other way then by getting people as good as if not better than the PAP’s team to show people that they can do a better job in government and give people a better life.