(In Mandarin): It is refreshing to note that our President has given a timely speech in this House expressing confidence that we will be able to ensure our future in a new environment when we are in the decisive l970s. This important historical document will serve as a guide to us in sailing along the troubled waters at this time. The President outlined three objectives in his speech: namely the optimum use of the time available to build up an effective defence capability; greater economic growth; and enhancement of national consciousness of our problems. These three objectives have relation to the world situation, particularly to the situation in Southeast Asia consequent on the earlier withdrawal of the British troops. Of these three objectives, the establishment of our defence capability is of the first and foremost importance. Of course, this will increase the burden on our people. Being a very small country, Singapore would have to meet and overcome difficulties in order to set up an effective defence capability. Fortunately, ever since we left Malaysia, we have already started to encourage our people to undergo military training, and also in his policy speech, the President has clearly pointed out that we must set up our defence capability at the minimum cost so that our financial resources will mostly be diverted to our economic development and industrial growth. From the economic point of view, the expenditure involved in setting up a defence capability should never be allowed to interfere with our economic growth in the process of nation-building. Both economic growth and economic development have a decisive bearing on our national defence. Mr Speaker, let us take the advanced countries such as Germany, Japan and Russia. They are advanced countries because of their high degree of development and the economic growth that they have had as a result of their educational reforms, scientific progress and industrial development. It would be better, of course, to build up a national defence force, after having achieved social and economic stability. But judging from the time that we have in hand and the situation that we are facing, we are not so lucky as to be able to enjoy economic growth first before building up our defence capability. So we must tackle both problems at the same time. We must divert the greater part of our financial resources into economic development in order to maintain our economic growth at eight per cent or even to raise our economic growth to more than eight per cent. I am happy to note that the three objectives outlined by our President are all geared towards the strengthening of our economic growth. We all know that the economic growth of a country can be divided into two stages. The first one is the stage of germination and the second is the process of growth. Mr Speaker, in our country we are happy that we have reached the second stage. We have already completed the first stage of germination. The general technical preliminaries have been completed and we already have a substantial economic and financial capability and the technical know-how. So in this respect we are ahead of the backward countries and some other developing countries. In addition to the quantitative progress that we have already made, we must also have qualitative advancement in order to speed up our economic growth and build up our national strength, because we all know that economic growth consists of quantitative progress as well as qualitative advancement. Both these two changes will cause a chain reaction in the whole structure. Sir, economic growth is not so simple to achieve as one would imagine, because it does not only involve capital or technical know-how. The fact is that other factors also have a bearing on speeding up our economic growth. These factors include religion, culture, education, customs and traditions, etc.. In this respect, I am glad to note that a. Cabinet Committee has already been set up with the Minister for Education as Chairman, the Minister for Science and Technology, the Minister for Finance and the Minister for Labour as members in order to carry out the reorganisation in our educational system so that we will be able to train the technical personnel that we require. Sir, human resources are very important in promoting economic growth and industrialisation. Therefore, the re-organisation in the secondary education system will, in the history of education, become a turning point in Singapore. Mr Speaker, I believe you will agree with me that our country lacks natural resources to assist us in our economic development. But we have inexhaustible human resources. These resources, with hard work and diligence, can earn extra income for our country. So the question is, how are we to make full use of these valuable human resources and to ensure that there is no wastage? The answer lies in the reorganisation of our secondary education system. We want to ensure that every secondary school-leaver will be able to make use of what he has learnt to contribute to nation-building and that all young graduates of secondary schools will have had some form of vocational training when they leave school. In the past, people said that graduation meant unemployment. Now with the completion of the re-organisation of our secondary education system, we can say that graduation can mean employment. This will be the ultimate objective of the reorganisation of our secondary education system. Mr Speaker, Sir, the other aspect of the reorganisation of our secondary education system is that we can increase the employment opportunities of our young school-beavers because they will have had some vocational and technical training when they leave school. When they take up their jobs, they will be able to make use of what they have learnt and carry out their duties effectively. At least, after the reorganisation, school-leavers will be able to leave school as junior technicians and directly take part in productive activities. This would be more practical as compared to the present system whereby they receive technical training only after they have taken up a job. Therefore, reorganisation in our secondary education system, economically speaking, will produce these results: firstly, to increase the employment opportunities of school-beavers; secondly, to ensure that all our nationals will have some form of skill to enable them to take part in productive activities; thirdly, to cut out the gap between productivity and the commencement of employment; fourthly, to ensure that there is no wastage in our human resources; fifthly, to turn our school-leavers from consumers into producers. As we all know, Singapore is situated in a turbulent area of Southeast Asia. Southeast Asia has all along been the centre of attention of the world. This is not because this area is rich and strong, but because it has been recognised and considered as one of the weakest areas in the world. It has been looked upon as a region which is not able to mobilise its political and economic resources to bargain with the super powers on an equal footing. As a country with a reputation of having a high standard of living and with a harmonious multi-racial society and a non-aligned foreign policy, we, in Singapore, have the duty to help other countries in Southeast Asia to transform their present pitiful state into modern societies. At the same time, we can also exercise a very decisive influence in stabilising the present turbulent situation in Southeast Asia. What is the future of Southeast Asia in the next few years? Will it be able to gain a greater say in international affairs and take a strong position in their relationship vis-a-vis the super powers? So, if we are to restore the stability and security of this region, it is vitally necessary for countries in Southeast Asia to put their houses in order and to be self-reliant. As the Minister for Foreign Affairs has said, there are two approaches to the solution of this problem. Firstly, we must secure greater regional co-operation. Secondly, every nation in Southeast Asia must make greater efforts in modernising its society and its infrastructure. As to the first approach, we have set an example by achieving co-operation in the economic field. The Minister for Finance in his recent broadcast mentioned the promotion of the tourist trade and our co-operation with Indonesia to develop Bali Island as a tourist spot so as to derive mutual benefit for Singapore and Indonesia. We have even sent a mission to Indonesia to go into the details of this scheme, namely, to investigate potential in Bali Island in order to promote the tourist trade in this region. In addition to this, we can also carry out regional co-operation in industry, agriculture and other fields through A.S.E.A.N. With regard to modernisation, the Government has achieved significant progress. In the President's Speech, it is revealed that the Ministries will make an overall greater effort to modernise our Republic. This shows that we are adopting a very positive approach to modernise our society. This is highly commendable and deserves our applause. Mr Speaker, Sir, as a result of our unrelenting efforts in the past five years to promote economic growth, Singapore has been able, among other things, to achieve a good reputation as an ideal place for foreign investment. Let me quote from an official study entitled "Comparative Grading on the Selection of Eight Asian Cities for Setting Up Regional Centres." This document shows that Singapore has been selected by international enterprises and entrepreneurs as a good place to set up their trading and industrial centres. The eight Asian cities are Bangkok, Hong Kong, Manila, Sydney, Naha, Taipei, Tokyo and Singapore. Compared with these cities, Singapore is second only to Hong Kong in the advantages provided for foreign investors. In the selection of cities for their investment, economic conditions, geographic position, communications, transportation, currency stability, banking services, education, health, standard of living and political stability, etc, come into consideration. And Singapore has fully met their demands. The scoring for every condition ranges from zero to five points and Singapore has been able to score 94 points, which is second only to Hong Kong which scores 97 points. Thus, we are positive that international traders have every confidence in selecting Singapore for their commercial and industrial enterprises. If we can modernise and provide better facilities and services, it will be a question of time before we become the first place. Mr Speaker, Sir, in order to increase productivity, promote industrial growth and speed up our economic growth, it is necessary to review and amend the existing Labour Ordinance, 1955, the Shop Assistants Employment Ordinance, 1957 and the Clerks Employment Ordinance, 1957. The purpose is to keep abreast with new changing situations. This review will create more employment opportunities and will solve, to some extent, our present unemployment problem. From the economic point of view, developing countries are generally faced with the problem of unemployment and the raising of the standard of living of their people. If we want to raise the standard of living of our people, we must, first of all, resolve the problem of unemployment. Therefore, I think a comprehensive labour law introduced at this juncture is in keeping with the need of the present development of our country. All economists know that if many people are unemployed, the purchasing power of the average national of that society will be lowered correspondingly. Therefore, the main solution to the unemployment problem is to raise the living standard of the people and set up a more balanced national economy. The diversification of our economy carried out at present is the most effective way of increasing employment opportunities and the national income. As the Member for Nee Soon, I welcome the introduction of comprehensive labour legislation proposed in the President's Speech. Mr Speaker, Sir, our country is small, but our citizens realise their duties especially when they are faced with decisive years ahead. Two-thirds of our population are youths. If we can provide them with effective and well-planned training, they will be able to make a useful contribution to our country. Therefore, I stress the importance of reforming our secondary education system. At the same time, I express my full support for the suggested reform of the secondary education system, as contained in the President's Speech, which will enable our school-beavers to become producers instead of mere consumers. This point is very important, as it will have a decisive effect on the future of our country. Mr Speaker, Sir, let me sum up what I have said in this House. For the sake of the long-term interests of the Republic of Singapore and the future of our younger generations to come, I welcome and support the policy speech delivered by the President. At the same time, I will do my best during my term of office to help in the smooth implementation of the Government's policies. 3.24 p.m.