MM Lee Kuan Yew at the Tanjong Pagar GRC Lunar New Year Dinner 2011

We had a splendid year last year making 14.7% growth. It is the result of sound policies of a competent government plus hardworking people, and especially co-operative trade unions and favourable developments in the region including China and India. We have had no strikes for many years to upset the pace of our growth.

Our tourist trade received a boost from the two integrated resorts – Resorts World Sentosa and Marina Bay Sands. Tourist arrivals went up from 9.7 million in 2009 to 11.6 million in 2010, while tourism receipts grew by almost 50%. Many hoteliers expected their occupancy would drop with the addition of 5,000 more rooms. Instead occupancy has increased because of the larger number of tourists that have come in.

But it was not just tourism that was better last year. According to MTI’s advance estimates for 2010, the manufacturing sector grew by 30.4% compared to 2009. The resident unemployment rate has reduced significantly from 4.3% in 2009 to 3.1% in 2010. Last year, 112,500 new jobs were created, a large increase from 2009 with only 37,600 new jobs created. To keep up our strong performance, we needed more workers. This caused some disquiet. So we are slowing down the numbers of new PRs. We must accept slower growth as a result. There were 29,265 new PRs last year, down by 50% from 59,460 in 2009.

This year, MTI expects a 4-6% growth which is not bad for a mature economy like Singapore’s. If we keep all our races together, united regardless of race, language or religion, and give everybody equal opportunities, we will continue to progress and do well.

Most important is to provide our children with better schools and teachers. The government has invested heavily in our schools, ITEs, polytechnics and universities. We have more than 25% of each cohort in publicly-funded universities that we heavily subsidise. This will increase to 30% by 2015. Almost 45% go to polytechnics and another 20-plus percent in ITE, where new buildings with up-to-date equipment enable them to develop skills that lead to good jobs. All students who are prepared to work hard, we will help them develop their full potential. If you study hard and develop your skills and talents during your student years, you are bound to do better later in life.

Finally, I wish all of you a happy and prosperous Lunar New Year!