2.1 Our first priority is to press on with upgrading and restructuring the economy, and create new jobs to replace old ones.

2.2 First, we must become a knowledge hub in Asia. Innovation, enterprise, and R&D will increasingly be the new sources of our growth. We are strengthening R&D efforts in the universities, research institutes, and industry. Our aim is to be a knowledge exchange, a key node in a global network of people and ideas, and a choice location for international events for both for-profit and non-profit organisations.

2.3 Second, we must build on our strengths in manufacturing and services, to promote activities that place a premium on trust, quality and service, not just efficiency and low cost. In manufacturing, we must raise our productivity and skill levels. In services, besides developing existing industries like logistics, info-communication, banking and finance, and tourism, we must seek new opportunities, such as in premier healthcare and education.

2.4 Third, we must support entrepreneurship and help promising local companies to grow into regional and international players.

2.5 Fourth, we must build up our human capital. We will continue to attract global talent who bring in new skills, create new value, and enlarge our economic pie. At the same time, we will invest in education and training, to equip Singaporeans with the skills and mindsets to succeed in a knowledge-based, innovation-driven economy.

2.6 Finally, we must maintain a competitive tax environment to attract investments, reward enterprise and draw talents. Let me touch on each of these areas.