1.87 The measures I have outlined will address the immediate economic difficulties and lay the foundation for the strategies to restructure our economy.

1.88 Looking ahead, we expect the Singapore economy to grow more slowly, even after the present slowdown, because we are now at a higher level of development, and external conditions are more difficult. We grew by an average of 7.3% per year over the last 15 years. For the next phase, the ERC estimates our medium-term growth potential to be 3% to 5%, comprising labour force growth of 1% to 2% and productivity growth of 2% to 3%.

1.89 Growth of 3% to 5% is lower than what we have become used to, but it is still an ambitious target. Few developed countries with per capita GDPs similar to ours have maintained such a high rate of growth. However, the major global cities in those countries, such as London or New York, which draw on wider hinterlands, have been able to grow faster and sustain higher per capita incomes than their national averages.

1.90 Singapore too should be able to achieve 3% to 5% growth, provided we too adopt the approach of these global cities. This is why we must stay flexible, adapt quickly to changing markets and technologies, continue to welcome global talent and keep on upgrading our capabilities. Then we can take advantage of the new opportunities, provide good jobs for our people, and raise our income and standard of living.

1.91 Not every Singaporean will find the going easy. The powerful forces of globalisation will widen our income gaps. A small number of citizens will need help to keep up. But every Singaporean can benefit from our country’s progress, provided he puts in the effort and is willing to adapt himself to the opportunities and jobs available.

1.92 The Government will concentrate its social safety nets on the minority of Singaporeans who need them most. This will ensure that the help reaches the neediest Singaporeans without undermining our work ethic and culture of self-reliance.

1.93 However, the task of caring for less successful Singaporeans cannot fall entirely on the Government. Singaporeans have a responsibility to look after others doing less well than themselves. The generous response of Singaporeans to charity drives is thus both heart-warming and reassuring. Concern for our fellow citizens and government assistance will help keep our society cohesive as we navigate an uncertain world.

1.94 No amount of aid to lower-income Singaporeans can substitute for job-creation through strong economic growth. Despite the uncertain outlook, we are well placed to seize the opportunities that only present themselves in uncertain times. If we stay the course, when the storm clouds clear, all Singaporeans will share in the fruits of success.