In order for Singapore to succeed in our next phase of economic development, we will require a different type of workforce-one that is able to acquire, apply and create knowledge in flexible and innovative ways to generate greater value.

Based on the jobs that Singapore expects to create in 10 to 15 years, we require a workforce where 65 percent have at least post-secondary education.

However, as of 1999, only 35 percent of our workforce have post-secondary education or higher. There is thus a risk of workers being structurally displaced if they do not upgrade or learn new skills.

The government is addressing this issue through a multi-pronged approach. First, we will continue to invest heavily in education to ensure that new entrants to the workforce are well-equipped to meet the challenges of the new millennium. Our students must be equipped with the right skill sets for the knowledge age, which include creativity and critical reasoning skills. For this, the Ministry of Education is allocated a budget of $6.3 billion, the second largest amongst all the ministries.

Second, we will also be spending more than $30 million on the Manpower Development Assistance Scheme (or MDAS) and other initiatives that will help everyone in the workforce upgrade their skills and knowledge continuously.

Third, to promote lifelong learning, Government has set up the Lifelong Learning Endowment Fund announced by the Prime Minister last August. The government is contributing the first $500 million into the fund in FY 2000. I am happy to announce that the government will contribute another $500 million to the Fund in FY2001. This will bring the Fund to $1 billion.

This will equip our workers with the skills to take on existing and new jobs, create new products and services and capture new markets in this new stage of economic development.

However, even as we try to maximise the potential of our people, we can never produce enough to meet all the talent needs of our economy. We must continue to draw the best and brightest from the world to our shores. Besides adopting a welcoming attitude to foreigners and talent-friendly immigration policies, we need to be attractive as a place to work, live and play.