MM Lee Kuan Yew at Tanjong Pagar National Day Celebrations 2010

The spectacular 45th anniversary National Day Parade encapsulates the experience and expertise the SAF has gained over 45 years. It is glittering, spectacular, hi-tech, display of military precision, and the 3-G hardware that we have accumulated. Every year, the SAF improves on what it has done. It is like the rest of Singapore. It’s the reason for our progress. Soldiers are better trained, officers are of the quality to improve on last year’s performance. And new team of officers takes over, studies the past and improves on it. This way Singapore has ensured succession.

The resources the SAF needs to mount such a superb performance requires a strong and vibrant economy. Without such an economy there is no 3-G IT SAF.

What makes all this possible. The Marina Bay site is the only city centre in the world with a piazza like Venice. It is a reservoir, filled with clean water, better than Venice where the water is polluted. Buildings around the marina are of high quality, especially the Marina Bay Sands integrated resort, and the Singapore Flyer. Singapore is the only city where 80% of our people live in HDB flats and own them.  And the Government regularly upgrades the HDB homes, and greens up the whole of Singapore.

In one generation (1965 to 1990), we made it from Third World to First. The next 20 years until 2010, Singapore acquired the poise and polish of a city vibrant and lively, with a buzz of a cosmopolitan world.

It is a most improbable story, how a small island surrounded in 1965 by hostile neighbours, “Confrontation” from Indonesia, and expulsion from Malaysia, both imposing economic embargoes on Singapore. No one gave us any hope of survival. We defied the odds and got to where we are. However, we must never forget our hard and harsh beginnings. If our national solidarity is splintered by communal hostility, and our social cohesion is weakened, we will regress. Then we will have a weak economy that cannot afford a strong SAF. That will again make us vulnerable.

Those of you who, like me, can remember Singapore in 1965, when we became independent, with no natural resources, limited land and the heavily populated, did not expect that 45 years we would transform Singapore into this gem of an island. We were able to support two million diverse peoples, who spoke different languages, and came from different towns and villages in China, India, Indonesia and other countries. And made them Singaporeans.

In 2010, we have a splendid skyline, a unique city centre with Marina Bay.   People dine alfresco along Singapore River, Boat Quay, Clarke Quay; high-quality condominiums surround Kallang Basin.

We used to be derided as just clean, green, safe and orderly, but dull and antiseptic. Now we have a lively city with the arts, culture, museums, art galleries, Esplanade Theatre by the Bay, a western orchestra, a Chinese orchestra. Musical groups perform for the public outside the Esplanade Theatre. And we have resident writers and artists. We are hosting 3,600 young athletes from all over the world at the inaugural Youth Olympic Games.

How is this possible?

First, our basic values laid the foundation – leaders of high integrity, who has the trust and confidence of our people. Next basic value is meritocracy. Everyone can get to the top as political leaders, MPs, the civil service and statutory boards. People get to where they are on merit: not 关系, not nepotism, not corruption. Hence, all are capable and competent. No policy is skewed as a result of personal benefit or profits. We have been rated as the cleanest government in Asia, and amongst the first three cleanest in the world.

Third, we have a level playing field for all citizens. No one is disadvantaged by our national policies whatever their race, language or religion.

Fourth, English is our working language. We did not choose Chinese, the language of the majority. English gives everyone an equal chance to master the language.  It is a language of the world of trade and individuals, the Internet and new knowledge.   It has made us the hub we now are for businesses, industries, banking and financial services, and communications.

Everyone is rewarded in accordance with his/her contribution to society decided by the market. The best man gets the job.

We knew that the problems we face are not unique. About 70% has been faced and solved by other countries. We studied how they have managed their problems, why some are more successful than others. Then we extracted the principles to adapt and modify them to fit our society.

We have also innovated and found our own solutions: ERP for cars to control congestion in the city, and other countries have begun to do likewise. NEWater through water reclamation with membrane technology. Other cities, especially in China and the Gulf states, with the same problem have got our companies to undertake projects to recycle their water, control waste water from polluting into their rivers and seas.

Our policies are not set in stone. We always re-examine old policies and positions, and changed them with changing world circumstances. For example, we were against F1 for many decades because we were a crowded city; and having cars racing around would encourage people to race along our roads. But recognising that F1 has a jet-set following, and could generate economic spin-offs for our people, we decided to allow F1. We prepared a special track laid out once a year for two or three weeks along the main streets in our city centre for night racing. It telecast our unique skyline to billions around the world.  It has been a sparkling success.

Similarly, we were against casinos for decades and refused offers of seedy casinos from Macau. But seeing the casino industry has developed in Las Vegas, a city in a desert, and their casinos have activities like big convention centres, live performances with successful Broadway hits, food and beverages with famous chefs, we have allowed two integrated resorts. The casinos are a physically small but financially significant part of an integrated resort. We decided on two, to show that they do not depend on Singapore customers. The majority are from China, Malaysia and Indonesia. Sands built a superb building with unique features and a roof garden on its 57th floor that spans three towers. Resorts World Sentosa is different, but equally profitable. Both casinos are doing well.  Their hotel facilities, convention centres, live shows, shopping malls and restaurants have drawn in hordes of tourists and Singaporeans. Our tourist industry has grown by 30% already, creating many jobs for Singaporeans and benefitting others from taxi drivers to shop owners.

To build such a Singapore, we need an exceptionally strong government, with the ablest, the toughest and most dedicated of leaders. We headhunt for them, test them out in heavy responsibilities. Only such leaders can keep the economy growing and create good jobs and generate the revenue to pay for the equipment and training of our 3-G SAF. This 3-G SAF provides the security and confidence of our people and of foreign investors, assured that we can more than defend ourselves. If there is insecurity, there will be fewer investments. That means a poorer people and instability.

To maintain social cohesion, we buffer the lowest 20% to 25%, the weaker achievers, from the tough competition of the market place by adding to their Medisave, give regular rebates on conservancy charges, and utility bills. And we support the lower-income workers with extra income through Workfare. All this aim for a fair and just society.

The world changes with new technologies: the computer, the Internet, iPhones and iPads. Our policies must change, adopt and adapt to these new technologies, the new lifestyles they create.

But our basic values do not change: a government of total integrity, a fair and equal platform for all our people to compete, regardless of race, language, religion or culture.

Crucial is the need for the next generation of men of integrity, dedicated, competent and tough-minded to succeed the present generation.

However, we have done poorly in one sector. We are not reproducing ourselves. With the fertility rate of 1.22, we will nearly halve our population in one generation. In the changed economic and social structure of our society, our married couples do not want more children. Therefore we have had to select immigrants from Malaysia, China and India and the region.

The first generation will take some time to assimilate because their culture and habits are different. Their children will grow up completely Singaporeans. We must help them integrate into our society, not exclude them. They will add to the vibrancy of our population. Instead of a declining and ageing population, these new citizens and PRs will make for a more varied and dynamic society.