1.22 We have made a good start in restructuring the economy to secure our future. But this is a long process, and much more work lies ahead.

1.23 Earlier this month, the ERC completed its work and published a comprehensive report. It recommended immediate measures to help our economy recover fully from the recession, as well as longer term strategies to make Singapore a leading global city. These five strategies addressed our :

• External Ties

• Competitiveness and Flexibility

• Entrepreneurship and Singapore Companies

• Manufacturing and Services

• Human Capital

1.24 The Government accepts the recommendations in the ERC report. These recommendations reflect the inputs of over a thousand participants from the private sector, the labour movement, as well as the public sector. The Government thanks all of them for their efforts and contributions. Their proposals provided a sound basis for revitalising our economy, and for sustaining growth in the next phase of our economic development.

1.25 Let me first explain these five strategies before I give the Government's response to the immediate steps recommended by the ERC. Later, in Part III of the speech, I will announce specific measures to implement the ERC recommendations.