3.1 Mr Speaker, Sir, the Government plays a key role in creating opportunity and building community. It provides the preconditions for economic growth, ensures that citizens are equipped to look after themselves and their families, and fosters a sense of belonging which makes us a society. Achieving these objectives requires a Government that is not only lean and efficient, but also capable and effective – making the right strategic decisions, anticipating change, and meeting new challenges flexibly and innovatively.

A lean and efficient public sector

3.2 Every dollar which the government spends has first to be earned. The lighter the burden of government, the better the economy will perform, and the more the people can enjoy the fruits of their efforts.

3.3 Therefore as far as possible, the public sector should minimise the resources that it requires. It must continually seek efficiency gains, minimise waste, find more cost-effective ways to deliver services, and benchmark itself against the best private sector practices. These imperatives are familiar enough to the private sector, especially in this age of intense competition. But they apply equally to the public sector, even though its bottom line is often more intangible.

3.4 Singapore has one of the most efficient public sectors in the world. But we cannot stay still. We need to continually raise productivity, do more with less, and restructure as needs and priorities change. Let me review our progress in these areas over the past year.