CLIMBING MOUNT EVEREST

When the Singapore team successfully climbed Mount Everest(中国称珠穆朗玛峰)) in 1998, I cheered. I spoke to Khoo Swee Chiow and his team-mates later.

They told me that they climbed up in stages, from Base Camp(探险队等的营地) to Camps 1, 2, 3 and 4, before they made their assault for the summit. The climb became more difficult and dangerous the higher they went. The air became thinner and the slope steeper. You had to be disciplined, determined, and well prepared. And you had to have luck on your side. There could be avalanches and rock fails, or the weather could change suddenly. Swee Chiow told me that the most important quality needed to climb Mount Everest was mental strength.

The climb up Mount Everest provides a vivid image for Singapore's own climb up the mountain of economic development.

Senior Minister brought Singapore up to Camp 2 -- from labour intensive to electronics and higher value-added industries. In the last 10 years, we have climbed higher to Camp 3, with wafer fabs(wafer fabrication的口语表达,晶体管加工), chemicals, and financial services. Now, we are making our way to Camp 4, to do IT, life sciences, and other knowledge-based activities. If we make it to Camp 4, we can then try to scale the summit where countries like the US, Japan and Switzerland are.

But let me warn you. As in the Mount Everest climb, the going will get tougher from here. As we go higher up the mountain of economic development, progress will be slower. We will not see the same high growth rates as in the past. We will have to work smarter and acquire more sophisticated capabilities to overcome complex challenges. We will be tempted to relax. Indeed, some Singaporeans have asked: "Do we need to be Number One in everything?" We will need great mental strength to continue pushing ourselves to excel. If we do not do so, others now behind us will push us off the track.

Tonight, I want to focus on this next stage of our economic climb.

THE CURRENT DOWNTURN

But first, let me touch on the current economic downturn.

When I met the media earlier this week, they told me that Singaporeans would expect me to speak in detail on the slowdown, and offer solutions.

I explained why I did not intend to do so. We have already discussed on many occasions our short-term problems. I want to deal with the long-term challenges. Of greater concern to me are the fundamental shifts in the global economic environment, and the fact that many of the jobs which are lost during this slowdown, might never return after recovery. We need a new strategy to respond to these developments.

Moreover, during the 1997 Asian financial crisis, we had put in place a major package of rebates and cost-cutting measures. Parts of this are still in effect, including the CP17 cut. Then, in this year's budget, Richard Hu cut corporate and personal taxes, and gave rebates on S&C charges, rentals and utility bills. Recently, George Yeo announced another package to deal with the current economic slowdown.

Let me assure you that if the slowdown drags on, we have the means and ability to do more to help you. And we will help you. My Ministers and I are watching the economy very closely. We are working out possible additional measures, just in case the economy continues to worsen and we need to administer a second package.

Our current problem is the consequence of being a small, open economy, highly dependent on external trade and foreign investment. When the US and other major economies were growing, we caught the strong winds and surged ahead. Now that the winds have died, our growth has slowed to almost a standstill. We do not have a large domestic market to go against changes in the wind in the external environment. We just have to cope with them. What the Government can do, however, is to make sure that the economy stays competitive over the long term, and soften the impact of downturns on businesses and workers through cost-cutting measures and rebates.

We are doing the right things, In a recent survey of 12 Asian countries by PERC, a Hong Kong-based risk-analysis consultancy, Singapore ranked number one for quality of government policies. PERC reported that: "Singapore is a poster-boy of how to pursue economic development... Now that the economy is slowing in response to the downturn in electronic exports to the US, the (Singapore) government is coming up with new measures to bolster growth. Yet it is not panicking, nor is it radically changing other policies that have been a source of stability and fortified investor confidence. " (Asian Intelligence, July 25, 2001)

So do not lose confidence. Do not walk around with your head ~an ing so low, as if we have been diagnosed with a grave condition. We might be a little out of sorts, but it is not life-threatening. When the global economy recovers, so will we. We should therefore keep our spirits up, and fight off any gloom. There is a bigger battle after this. We can succeed only if our morale is high.

THE LAST TEN YEARS

Let us plan the next stage of our economic climb even as we deal with the current slowdown.

I had earlier given the media a booklet on the progress we made in the 1990s. A copy has also been given to you.

This record of our achievements sets the current downturn in perspective. The last few years have been volatile -- good growth in 1997, sharp downturn in 1998, recovery in 1999, 10 per cent growth in 2000, and now another downturn. But taking a longer view over the last decade, we have made considerable progress.

This should give us the confidence that we can climb higher. We have strong fundamentals. We have a tested team of experienced Ministers, MPs, grassroots and union leaders, and civil servants. We have capable people in the private sector and a united population. And we have the resources to invest in new ventures and capabilities.

Our economy grew faster in the 90s than in the 80s, despite the 1997 Asian financial crisis (7.7% per annum, as against 7.3%). I was also quietly satisfied that we realised our vision of reaching the 1984 Swiss standard of living last year. In 1984, we had set this as a target to be achieved by 1999, but we missed it by one year because of the crisis.

The Government distributed back to Singaporeans a good part of the wealth generated from this strong economic growth. We shared close to $14 billion through asset-enhancement programmes and endowment funds. We invested in better healthcare, housing and education. Singaporeans' standard of living went up considerably.

We also livened up the arts, cultural and leisure scene. Two years ago, Time magazine described our city life as "funky". More recently, Australia's Canberra Times said that Singapore was "hip" and "cool".

Ahh! Now, we even have foam parties! 1 thought foam parties were for children, but 1 saw pictures of adults enjoying themselves too. That is all right, so long as the merry-makers prance around with the lights and their clothes on.

Fortunately, we also have high-browed stuff like plays, ballets and musicals. Tonight's Rally is held here instead of the usual Kallang Theatre because I gave way to "Miss Saigon".

BUT THERE ARE GAPS

However, there were also areas where we could have done better. I will mention only two, just to remind Singaporeans not to be complacent.

Our service standards can be improved. Our newspapers carry many complaints of poor service in our shops and restaurants, by taxi-drivers, and even in our hospitals and banks.

We can also be more gracious and considerate, at home and in other countries.

For example, some Johoreans have described Chinese Singaporeans as "hao lian" or "show-offs". They claim that Singaporeans love to speed and beat traffic lights when in Malaysia; behave as if they are "ABC" or "American-born Chinese"; and love to shout "very cheap, very cheap!" while shopping.

I would add that we are too 'kiasu'. For example, at buffets, we pile oysters on our plates as high as Mount Everest.

I think our less than gracious behaviour is because we have become affluent too quickly. Our social graces have not kept pace with our material progress. Let us be humble, courteous, and gracious in our behaviour and attitude. Let us make friends with our neighbours, especially Johoreans.