PM: Singapore economy grew 3.7% in 2013

Growth forecast at 2-4% this year, PM Lee says in New Year message

By Goh Chin Lian, The Straits Times, 1 Jan 2014

SINGAPORE continued to make progress last year, with the economy growing by 3.7 per cent, although it also hit a few rough spots, Prime Minister Lee Hsien Loong said in his annual New Year message yesterday.

Salaries are up, including for the lower-income, and the 2014 growth forecast is 2 to 4 per cent.

"This means better jobs and new opportunities for workers. It also means that we can do more to make ours a gracious city for all," he said.

The Ministry of Trade and Industry will release more figures on the economy tomorrow.

Post by Lee Hsien Loong.

Mr Lee gave a progress report on the new way forward he mapped out in his National Day Rally last August, one of stronger social safety nets, more measures through education to keep social mobility going, and sharing the fruits of progress more widely through home ownership and support for low-wage workers.

Progress can be seen in shorter queues for new Housing Board flats, stable housing prices and more affordability through targeted subsidies, he said.

In education, the Government is investing in quality pre-school education for all and refining Primary 1 registration and the PSLE scoring system. And reforms are being made to the national health insurance scheme MediShield to offer better lifelong protection against large medical bills.

"These are major shifts in our way forward. We will implement changes progressively, and improve on our programmes as we learn what works best," he said. He also promised more initiatives in the next few years to address other needs.

In May, the Government will set out its agenda for the second half of its five-year term in office when Parliament starts a new session after a mid-term break.

Turning to concerns about foreign workers in the light of the Dec 8 riot in Little India, Mr Lee said Singapore will continue to treat foreign workers fairly, but it also expects them to obey its laws and social norms.

"The riot reminds us that we can never take good order, peace and stability for granted," he said.

On the broader population issue, he said there are no easy choices and stressed that Singapore would take a balanced approach to reduce - but not cut off - the inflow of foreign workers.

The Government is helping firms to adapt by helping them exploit technology and be more productive, and encouraging them to develop their local workforce.

How Singapore fares in the year ahead also depends on its external environment, and Mr Lee highlighted tensions in Asia as a concern. These include disputes in North-east Asia over historical issues and the ownership of islands, the Korean peninsula and overlapping territorial claims by China and South-east Asian countries in the South China Sea.

"Provided nothing untoward happens in Asia, I am confident that Singapore will do well. We are investing in our future and developing new capabilities," he said. It is also enhancing applied education and building new infrastructure such as train lines.

"We are creating exciting opportunities, to hand on to our children a better Singapore than the one we inherited," he said.

He highlighted the courage of national athletes at the SEA Games and Home Team officers in the recent riot, and said the Singapore spirit continues to burn bright. He called on Singaporeans to keep trusting and helping one another, as that will "create a brighter future for ourselves and our children".

A new direction towards a shared goal
This is the text of Prime Minister Lee Hsien Loong's 2014 New Year message yesterday
Published The Straits Times, 1 Jan 2014

SINGAPORE continued to make progress in 2013.

We have set new directions for Singapore, and are working steadily towards them. Change can be unsettling, and we have encountered a few rough spots this year. As a society, we were tested, but we came through together. As we work through the transition, we can look forward to a better future for all.

Our economy has done well. It grew by 3.7 per cent in 2013 - better than initially expected. Median salaries increased by 3.9 per cent in real terms, and pay for the lower-income went up too. This means better jobs and new opportunities for workers. It also means that we can do more to make ours a gracious city for all. Next year we expect to grow by 2 to 4 per cent.

In other fields too, our people are scaling many peaks of excellence. Cultural works like Ilo Ilo are winning international awards. Team Singapore athletes did well at the SEA Games, winning medals in a wider range of sports and inspiring Singaporeans. In the latest Programme for International Student Assessment (PISA), our students ranked among the top three countries worldwide for reading, mathematics and science.

A new direction

IN THE National Day Rally, we set a new direction for Singapore. The Government and community will give more support to individuals. We aim to keep our society open and mobile, especially through education, so that anyone can rise regardless of family background. We will strengthen social safety nets to ensure that anyone can bounce back from difficulty, and to give Singaporeans, especially our seniors, greater peace of mind on their health-care costs. We will share the fruits of progress more widely, including through home ownership schemes and support for low-wage workers.

We are making steady progress. The first-timer queue for Housing Board flats has shortened, housing prices have stabilised and targeted subsidies have made homes more affordable. We are investing in quality pre- school education for all, and refining the Primary 1 registration and PSLE (Primary School Leaving Examination) scoring systems. Our schools are stressing values and character education. Equally, we are broadening definitions of success as we seek to make every school a good school.

MediShield Life will provide all Singaporeans, including those with pre-existing illnesses, better lifelong protection against high medical bills. We are also working out the Pioneer Generation Package to honour the special generation who built today's Singapore. We will announce details soon.

These are major shifts in our way forward. We will implement changes progressively, and improve on our programmes as we learn what works best.

Further initiatives

IN THE next few years we will take further initiatives to address other needs, and deal with new problems that arise. After the Budget session, we will prorogue Parliament. When Parliament reopens in May, the Government will set out our agenda for the rest of our term.

Another long-term issue we addressed this year was population.

The White Paper in January laid out the choices before us. It provoked an intense response, but the debate has helped everyone understand why population is such an important issue, and why we cannot avoid difficult trade-offs.

Whether we bring in more immigrants and foreign workers or fewer, whether we aim for higher growth or lower, there are no easy choices for Singapore.

We are taking a balanced approach, reducing but not cutting off the inflow of foreign workers. This is why companies are finding it harder to hire the workers they need, especially SMEs (small and medium-sized enterprises).

We are helping companies adapt by exploiting technology and becoming more productive. At the same time, we are encouraging firms to develop their Singaporean workforce and adopt fair employment practices. But we still need foreign workers to keep our economy running and to build critical infrastructure for Singaporeans, like HDB flats, MRT lines, and schools.

We will continue to treat foreign workers fairly, but we expect them to obey our laws and social norms. The riot in Little India was inexcusable. We have taken firm action against the culprits. Several have been charged, others warned and repatriated, and still others advised to abide strictly by our laws.

The Committee of Inquiry will establish how the riot happened, and how we can prevent such incidents in future. The riot reminds us that we can never take good order, peace and stability for granted.

As we focus on domestic issues, remember that how we fare depends also on the world around us. The European and American economies are stabilising. Asian prospects are still positive, but there are problems and tensions. In North-east Asia, the disputes between China, Japan and South Korea over historical issues and the ownership of various islands have sharpened, and stability of the Korean peninsula is a serious worry. In South-east Asia, several Asean countries and China have overlapping claims in the South China Sea.

Singapore is not directly involved in these issues, but we do have a vital interest in a peaceful and stable region. We hope the countries will work out their disputes peacefully and in a spirit of friendship. This is the way to maintain the stable and open environment that has benefited all Asian countries.

Provided nothing untoward happens in Asia, I am confident that Singapore will do well. We are investing in our future and developing new capabilities for tomorrow's economy, like 3-D printing, data analytics and consumer insights research.

Senior Minister of State Indranee Rajah is chairing the ASPIRE (Applied Study in the Polytechnics and ITE Review) Committee to strengthen applied education pathways, and enhance career and academic prospects for ITE (Institute of Technical Education) and polytechnic students.

We are transforming our physical environment: Opening new train lines and expressways, and working through their teething problems; in the longer term expanding Changi Airport, reclaiming land for Tuas Port and planning the Southern Waterfront City. We are creating exciting opportunities, to hand on to our children a better Singapore than the one we inherited.

Our shared goal is a brighter future for ourselves and our families. Our families mean everything to us. They anchor our identity, inspire us to do our best and love us unconditionally. So it is right that we take care of them and honour them with our love and concern.

We celebrate the 20th anniversary of the International Year of the Family in 2014. Many activities are lined up, including Family Days, Children's Day celebrations and intergenerational events for grandparents and grandchildren.

Do join in them, and make a special effort to spend more time together as a family. Do also invite friends, colleagues and neighbours who are away from their own families to join you, and embrace them as part of our larger Singapore family.

The Singapore spirit burns bright in our people - in the concern of volunteers who distributed masks to vulnerable groups during the haze, in the determination of a SEA Games cyclist who fought back from a serious car accident to win gold and in the courage of Home Team officers who formed human shields to protect colleagues during the riot in Little India. We must nurture this spirit, and keep faith with our nation and our people. By trusting and helping one another, we will create a brighter future for ourselves and our children.

I wish all Singaporeans a very happy New Year.