SG50: A time to reflect, give thanks and look forward, says PM Lee

By Wong Siew Ying, Channel NewsAsia, 1 Jan 2015

As 2015 approaches, marking Singapore’s 50th birthday, Prime Minister Lee Hsien Loong said it will be a time to look back, give thanks for the nation’s achievements and look forward to the future with confidence.

In his New Year Message, he also announced that economic growth for the year was 2.8 per cent.

Mr Lee said 2014 has been an “eventful year”, with rising nationalism leading to tensions in this part of the world, the Ebola outbreak in West Africa still “far from under control” and terrorism continuing to “loom large”. The region also experienced several air tragedies close to home - most recently the loss of AirAsia flight QZ8501 from Surabaya to Singapore.

Post by Lee Hsien Loong.

“As Singapore prepares to celebrate our 50th birthday, we are reminded that stability, safety and security are precious, and a pre-requisite for safeguarding what we have, and reaching for a better future,” he said.

PRODUCTIVITY SCORECARD

On the economy, Mr Lee said we can “take heart” from the fact that the economy grew by 2.8 per cent for the year, while real median incomes continued to rise, leading to a 10 per cent increase over the last five years. Singapore is also not facing unemployment and stagnant wages, unlike many developed countries, he added.

The growth of 2.8 percent is a touch lower than the previous estimate of 3 per cent given by the Ministry of Trade and Industry, and also a moderation from the 3.9 per cent pace in 2013.

According to some economists, GDP was weighed down by the global growth momentum, which was slower than expected. In addition, DBS Bank says there was also the drag from restructuring efforts here, which are having an impact on the labour market and business costs.

According to Mizuho Bank, it has been a patchy year for the manufacturing sector, which accounts for about 20 per cent of Singapore’s economy. Data out earlier this month showed that manufacturing output in November fell 2.8 per cent on-year, the biggest year-on-year decline since June 2013.

With the full-year GDP growth at 2.8 per cent, economists expect fourth-quarter GDP to likely fall short of expectation, barring any revision to numbers for the first three quarters. DBS Bank projects that Q4 GDP probably registered 1.3 percent, while Mizuho Bank puts it at between 1.2 and 1.5 per cent.

Mr Lee also said productivity performance has been “disappointing”, and growth has been weak for the third year in a row. It is at -0.5 per cent for the first three quarters; “We must do better,” Mr Lee said.

He added: “Growth is not the be-all and end-all, but it is the only way for us to create good jobs for all and earn a good living, so that as a nation we can invest in our people and our future.”

Economic growth also gives the country the resources to improve social wellbeing and sustain social safety nets, he said. This has been a major priority as the Government makes fundamental policy shifts to prepare for the future. “These shifts will give Singaporeans at each stage of life greater assurance, more opportunities, and a better home,” Mr Lee said.

“GREATER ASSURANCE”

To give Singaporeans greater assurance, the Pioneer Generation Package was introduced this year, and the “response has been good”, according to the Prime Minister. “Our pioneers are happy that in their golden years their sacrifices and contributions are being honoured. Their children and family members are also happy as their load too has been eased.”

Another initiative – MediShield Life – will come into effect in 2015, which will give Singaporeans better healthcare coverage for life, he added.

“Because of these new schemes, social spending is rising steadily. We have been prudent in the past, so we can afford the new programmes we are launching,” Mr Lee stated. “But we must remain disciplined and grow our social programmes in a way which can be sustained well into the future. We must never mortgage our children’s future for our present comfort.”

“MORE OPPORTUNITIES”

Mr Lee also said that more opportunities for Singaporeans must be created so that everyone can achieve their aspirations. This means continuing to invest in early childhood education, making every school a good one and building a strong and diverse tertiary system through the Institutes of Technical Education (ITEs), polytechnics and universities.

The Government is also looking to enable Singaporeans to learn and develop expertise regardless of life stage or occupation – which is what lies at the heart of the SkillsFuture initiative, he said.

“We must fundamentally change mindsets about progression, upgrading, and success. Learn to value individuals for their different skills and contributions, and not just for their academic performance,” Mr Lee said.

“BUILDING A BETTER HOME”

On building a better home for Singaporeans, Mr Lee highlighted several efforts this year, including 28,000 families collecting keys to their new HDB flats this year, 550 more buses plying the roads with more to come and the Smart Nation initiatives to use IT to improve quality of life.

“But home is more than just good infrastructure, beautiful surroundings and convenient amenities. Ultimately, home is about family and relationships. All of us desire to have loving families with strong bonds and ties,” he said.

The Prime Minister pointed out that the SG50 Baby Jubilee Gift is the Government’s way of celebrating the joy of parenthood with families and represents the collective best wishes to the next generation. “Into their hands, we entrust Singapore’s future,” he said.

Reiterating, Mr Lee said the road ahead for the nation appears daunting, with intense global competition, security threats from extremist terrorism and new pandemics, but Singapore can have a “well-founded confidence about our futures”.

“How we deal with our challenges will decide what sort of country we will become. We can realise our vision of a fair and just society and a nation of opportunity if we confront our challenges squarely, and fight for our place in the world. We must not succumb to mediocrity. It is not good enough for Singapore to be an ordinary country,” Mr Lee said.

He ended by wishing all Singaporeans a very happy new year.