PM Lee Hsien Loong's Chinese New Year Message 2010

The Year of the Ox began on a challenging note as we faced the worst economic crisis since our Independence.

In the first quarter of 2009, our GDP plunged 10%. But our economy pulled back up so that for the whole year GDP only declined 2.1%. We kept unemployment low, bringing it down to just 2.1% in December. In a recession year, we managed to increase employment by 39,000. Thankfully, our efforts produced a much better outcome than we had feared.

Singaporeans faced the difficulties with resolution and fortitude. We were apprehensive, but did not panic. Instead, we calmly made a collective effort to find practical solutions, to keep companies viable and get workers properly skilled to hold on to jobs. Because we responded as one people, we prevailed.

However, we must remain vigilant in the Year of the Tiger. The Tiger is a force of nature, and this year holds some risks and uncertainties. Although economies have largely stabilised, there may still be surprises and close calls. For example, property values in Dubai have fallen sharply. Greece is in severe financial distress, and Spain and Portugal are under pressure too. This is troubling the whole of the Eurozone, and unsettling global financial markets.

Such events far away can hurt Singapore, because we are so open and globalised. The Government is therefore carefully monitoring the economy. Singaporeans should be psychologically prepared as well, and not let down our guard too soon.

The Tiger also symbolises bravery and strength. Singaporeans must be imbued with the spirit of the Tiger, ready to face the challenges and uncertainties, and stout-hearted in pushing ahead to create a brighter future.

The Economic Strategies Committee (ESC) has recommended moderating the inflow of foreign workers, and raising our productivity growth from the current 1% to 2-3%, in order to sustain GDP growth of 3-5% over the next decade. Beyond the numbers, this means a significant shift in our strategy, from merely expanding to upgrading the economy.

We are at a turning point in our economic development. We cannot continue importing foreign workers as liberally as before, because we will run up against space constraints. This means our total workforce will expand more slowly, which by itself would imply slower economic growth. To make up for this, and achieve the 3-5% growth target, we must raise productivity much faster, and do more with the resources that we have.

Importing fewer foreign workers does not mean less competition for Singa­poreans, because our real competitors are out there in the world, and not here among us. Instead it means that our workers have to work harder to upgrade ourselves. Only when every citizen is well-trained, and is continually improving his skills and knowhow, will Singa­pore do well, and every citizen better his life.

Upgrading productivity is therefore a vital task. We must not fail, otherwise our economy will stagnate, our city will become less vibrant and our children will enjoy fewer opportunities. By working smart and bringing about this economic transform­ation, we can exploit the abundant opportunities in Asia, and create more chances for ourselves.

Besides upgrading the economy, another challenge is maintaining and rejuvenating our population. We need enough babies to replace ourselves in the next generation. We also need to preserve a core of citizens who are born here and have grown up here, who will maintain and pass on the values and spirit of our nation.

Unfortunately, despite all our efforts we are producing far too few babies. Last year our resident TFR slid further to 1.23 from 1.28 the year before. This is the lowest we have ever experienced. It means last year we were short of at least 10,000 babies just to replace ourselves. For the Chinese, the TFR was even lower, going down from 1.14 to 1.09, equalling the previous lowest level for the Chinese (in 2003 and 2004). Probably the recession last year made couples hold back having babies. But it also reflects fundamental social changes that are affecting all East Asian societies.

I am worried about this year too. Some Chinese couples prefer not to have children during the Year of the Tiger. In each of the last three Tiger years (1998, 1986 and 1974), the number of births dipped by 7%. It is one thing to encourage ourselves with the traditional attributes of the zodiac animals. But it is another to cling on to superstitions against children born in the Year of the Tiger, who are really no different from children born under other animal signs.

Regardless of the zodiac sign, we must keep this a good place to have and bring up children. The Government will continue to support and encourage Singaporeans to have children. But more important is support from the family, which helps lessen the burden of raising the next generation. Many Singaporean working mothers have told me they depend on their families to help them juggle career and childcare. Certainly many women MPs could not have managed the demands of their public duties on top of their own careers without their families fully behind them.

Recently I met Ms Sophia Pang, who participated in the all-women Commonwealth Antarctic Expedition last year. The expedition took her away from home for more than two months. She told me that during her absence, her mother, mother-in-law, sister and husband all chipped in to look after her three young children. Without this strong family support, she could not have become the first Singaporean woman to ski to the South Pole.

Not everyone will aspire to travel to the ends of the earth. But family support will give many of our women the opportunity and confidence to pursue their careers and interests, and to build families. It does not mean they can completely avoid sacrifices and tradeoffs – that is not possible. But it is a tremendous reassurance for a young couple to be able to count on their parents to help care for their children. With state and family support, I hope young people will think seriously about getting married and starting families earlier.

The family is the basic unit of our society. During this Chinese New Year period, Chinese families will gather for their reunion dinners, and over the next few days visit relatives and friends all over the island. The other races have similar customs during their respective festivals. I am cheered to see the younger generation keeping alive this healthy tradition, for this means that Singapore families are in good shape.

In this age of globalisation, we need to make an extra effort to strengthen the family unit. Many Singapore families have members overseas, sometimes working in far flung places – helping to stabilise and reconstruct Afghanistan, keeping the Gulf of Aden safe from pirates, developing a port in Panama, or constructing a shipyard in Azerbaijan. Such separations can sometimes be hard on the family. Fortunately, with the internet, family members can continue to keep in touch from distant lands, through email, Skype, Facebook, etc. I hope families will make full use of these modern devices, to at least have a video chat over the festive period. Nowadays, the other side of the world is no longer so far away.

Let us recall how important our families are to us; rejoice that Singa­poreans have united to overcome a very major challenge; and resolve to make the best of the year ahead.

I wish all Singaporeans a very happy Year of the Tiger.