Mr Speaker, Sir

5.1 This Budget lays the basis for our economic restructuring. The intensity of global competition is unprecedented. Our restructuring process will be neither easy nor painless. But the world has changed, and we have no choice. Hence, the Economic Restructuring Package includes both the tax changes to gear us for the future, and also a comprehensive set of offsets to help Singaporeans adapt to the changes.

5.2 These measures will put the Government in a tight fiscal position over the next few years. We can afford the package only because we have been consistently prudent in fiscal matters. Many countries find themselves in this new competitive environment, but few are in a position to restructure their taxes, offset the impact on their people, and prepare themselves systematically for the trials ahead. We must continue to save in good years, and be prepared for difficult years every now and again.

5.3 We cannot predict how the global situation will develop, or how quickly Southeast Asia will regain its stability and confidence. Not all the external trends are favourable. But let us make fundamental changes now, so that we sustain economic growth, stay ahead of the competition, and create jobs and prosperity for our people.

5.4 Mr Speaker, Sir, I beg to move.