Hansard, 1977-02-08

The President (accompanied by two A.D.C.s) entered the Chamber, accompanied by Mr Speaker, who was preceded by the Serjeant at Arms (without the Mace), the Second Assistant Clerk, the First Assistant Clerk and the Clerk. On the Clerk announcing "The President", the President delivered his Opening Speech. 8.31 p.m. The President (Dr Benjamin Henry Sheares): Honourable Members, we have gathered today at the start of a five-year term of this fourth Parliament since 1965. It will be idle to pretend that the security and economic prospects are better now than when we met in October 1972. Then the Americans were still in Vietnam and backing the Thieu regime. Now, they have departed even from Thailand. 1972 was before the oil crisis, and more rapid growth was in the offing. Now, there is uncertainty and anxiety amongst the major industrial nations of the West. It is an open question whether they can co-ordinate their economic policies. especially America, Japan and Germany, to stimulate recovery from recession without again another bout of high inflation. We have now to be prepared for slower growth rates, and adjust accordingly our spending habits, both as a government and as individuals. My government has again been returned to office. The PAP won in all constituencies. This government has the highest number of votes, and the highest percentage of votes (72.4%) cast in the six general elections held since representative government in 1955. This vote of confidence imposes a heavy responsibility on my Ministers to act fairly but firmly. My government will exercise its authority to govern with circumspection and moderation. It also places on all Honourable Members, especially those not holding office, the duty to ensure that all shades of opinion out in the constituencies are vigorously voiced in Parliamentary questions and debates. No major policy or legislation should be passed without the closest scrutiny, and passed only after the most thorough debate. The mandate on which my government was elected is clearcut. The issues were fought for months, indeed years, before the elections. Many of the opposition political parties, both those who took part in the elections and those who did not, repeated the demands of the Communist Party of Malaya (Malaya including Singapore) (CPM), regularly voiced over their clandestine radio. These demands include the unconditional release of all communist and pro-communist detainees, abolition of the Internal Security Act, and abolition of National Service. The people have rejected these and supported the government, But it would be naive to believe that the Communist Party of Malaya, in their armed struggle for a communist Malaya, will not try to abuse the opportunities of the democratic processes, and the mass media, to help camouflage their armed struggle to grab power. They will continue to rebuild amongst small misguided student groups, like the Malayan New Democratic Youth League (MNDYL). Student groups in the Polytechnic and in other tertiary institutions have been and will be their recruiting areas. Small groups of activists will continue to manipulate our student organisations abroad in Britain and Australia, in active collaboration with British or Australian Marxists and Trotskyites, as the case may be. They now style themselves as the "new left". But their techniques of oft repeated lies, and their exploitation of innocent soft-hearted or soft-headed "liberals", are long-established techniques and tactics of the communists, learned by the CPM from other communist parties in Europe and Asia, repeated with minor variations on new audiences in different places. And there is always the younger, politically innocent, if not naive, generation. The vote is also a renewed mandate not to be beguiled away from a most necessary law, which the British themselves drafted and promulgated when faced with communist insurgency in 1948, namely, detention of communist and pro-communist elements without going through the processes of a public trial accorded to ordinary criminals. My government, in accord with humane sentiment, will release them if they will denounce the CPM's use of force to seize power, and themselves forswear the use of force to unseat a constitutionally elected government. Lest it be forgotten, it is a mandate also to reject the soft-headed, pernicious policies that all the good things in life, from bus rides to PUB charges, can be given for free, or otherwise to reduce the fares or charges when the costs are going up. Only education, medical treatment and housing will be subsidised, in order to help everyone to be educated and healthy to be able to look after himself. But nominal charges must be paid even for schools, to pay for the extra curricular activities, and hospitals, to prevent unnecessary pressure on medical facilities. Before us are some terrifying examples of what can happen to those who go in for soft options and subsidised living, a temptation in any one-man-one-vote election campaign. Some once-great nations have been beguiled by this illusion that somebody else will pay, that all people had to do was to elect a government that would take money from those who have and give it to those who have not. Indeed, the British Prime Minister lamented a few weeks ago that the most hateful slogan he had heard was made at a recent protest march of Marxist and Trotskyite infiltrators of his Labour. Party: "What do we want? Everything! When do we want it? Now!" A great people have been temporarily reduced to straitened circumstances by this excessive cushioning of life by state subsidies. When my Prime Minister visited China last year, his realistic communist hosts described such sad situations as "teachers by negative example". My government holds firm to this simple truth: that to get from each his best, rewards and recognition must go to those who excel in consistently high performance. Between the soft solutions of some West European socialists of equal rewards, and the hard realities of Asian conditions, my government has no doubts that the people of Singapore unequivocally uphold Asian precepts - "From each his best; To each his worth". The communists in China have a variation of this in their aphorism: "Ge jin suo neng, an lao fen pei" () - from each according to his ability, to each according to his labour. However, we are different from China. We have access to modern science and technology. We have rapid economic and material transformation that comes from these modern management methods, capital inputs and marketing knowhow. But we must not abandon the cardinal precepts of our long-proven culture systems, precepts which enabled some Asian civilisations to survive, and without a break in continuity, floods. famines, pestilence, wars, disasters and foreign conquests. Whilst we admire and must learn and acquire their science and technology, their management skills and marketing knowhow, we do not seek to model our lives on Western social mores and their contemporary life-styles. We must learn the experience of the Japanese - how, in less than a hundred years since the Meiji Restoration of 1868, they have become a modern industrial state, without abandoning their own cultural traditions. Their experience is more relevant to us than those of the countries of Western Europe. The exceptions are perhaps West Germany and Switzerland. We have to formulate our way of life, taking what is best from the West and fitting it into the Singapore context. We must not allow our values and our philosophy of what is good government to be overwhelmed by the standards and norms of the contemporary West, regardless of their relevance to our social, economic and political conditions, simply because, for the time being the West have the material abundance and technological superiority. Let us select the relevant factors in their societies, factors which have made them strong and have been proven by the test of time. Then we can incorporate these factors into our system without damage to ourselves. At the conclusion of the President's Address. Mr Speaker, preceded by the Serjeant at Arms, the Clerk, the First Assistant Clerk and the Second Assistant Clerk, escorted the President (accompained by two A.D.C.s) out of the Chamber, and the House adjourned without question put, pursuant to the Standing Order. Adjourned accordingly at Twelve minutes to Nine o'clock p.m.

Economic Policy Over the next few years, our aim will still be to make Singapore grow fast again. Old and new curbs on trade by the richer countries in the world will limit such growth. But Singapore should grow by at least 6- 8% every year. We can then provide enough jobs for workers And we can enjoy an increasingly higher standard of living because we can pay for our needs in food, housing, education and health and for more and better goods and services. Monetary and Fiscal Policy We shall maintain the Singapore dollar as a strong and stable currency. The money supply will be expanded moderately. The money, bond, capital and foreign exchange markets will be further developed in our financial centre. The intention is that there will always be finance at reasonably low interest rates to encourage sound projects. There will, however, be no extravagance in public sector expenditures. These will be more efficiently controlled by a new style budget by 1979 This budget will enable the work programmes of each Ministry of Government to be examined against its targets and its performance Funds can then be allocated on their review As Singapore grow, what we collect from our present taxes grows also. With good growth, we shall rarely have to put up tax rates or think of major new taxes to pay for our increased needs. But we may want, as one way of helping to encourage or discourage one kind of activity over another, to change a tax or add another to our tax system. We may wish to favour manufacturing, international finance and banking. reinsurance, warehousing of capital goods and equipment for sale to regional and international markets, and tourism and conventions. A Fiscal Policy Implementation Committee will suggest how best we can do this. Industrial Development We want much more manufacturing in Singapore. We shall therefore continue, through the Economic Development Board, to offer special help, by lower taxes or otherwise, to investors who set up new industries or expand old ones. We have ready now, in our industrial estates, land and factory buildings served with power, water, telephone and other services. If necessary, we shall build more, especially smaller, factory buildings. These will be sold at low prices to manufacturers who support bigger ones by supplying small parts or do other services for them We need to keep down costs so that the goods we make will not be too dear to compete with those other countries produce. We shall watch carefully therefore against too high Government charges for industry such as for port services or rates for electricity and water. But we may have, from time to time, to meet higher prices such as for oil. We shall seek, through the National Wages Council, single annual wage increases which reward workers who produce more. We shall spend more on Training Centres to give better training to our workers so that they have the highest manual skills for delicate, precision work. And we shall also persuade those who own or manage businesses to learn how to make better use of their workers and their machinery and to sell their products also in new and wider markets overseas. Trade Development We shall help in a number of ways to make trade flow more easily. We shall do more to improve regional markets by increasing ASEAN economic cooperation and making preferential trading arrangements. Finance for exports will be made more easily available. The Monetary Authority of Singapore will keep its rate for rediscounting export bills attractive. We shall arrange with the Development Bank of Singapore for long term loans to be given on easy terms to sell ships built in Singapore yards. The Export Credit Insurance Scheme will be extended to cover business and political risks for capital goods also. Small industries will get increased aid from the Small Industries Finance Scheme. Tourism We shall encourage more tourists to come to Singapore, especially from ASEAN countries. We shall promote more conventions for business and professional men. We shall try to increase the number of group tours by getting more chartered flights into Singapore. HON SUI SEN Minister for Finance

The General Elections of December 1976 proved that the Republic's citizens accept national service as a necessary duty of the young. Only in this way is it possible for a small country to achieve the minimum security required for confidence and development. However, since our defence forces have to import nearly all their weapons and equipment, the rising prices of these products impose a severe financial burden. It is therefore necessary to exercise the utmost economy in defence expenditure. In November 1976, a committee of Finance and Defence Ministries' officials was appointed to maintain a continuing surveillance over costs and to prune down expenditure. It is also necessary to economise in the use of manpower. As a result of successful family planning in past years, the number of young men available for national service in future years will show a steady but relentless decline. In ten years' time, the number available will be nearly 30% less than what it is now. There are a number of implications which are being studied in the Ministry of Defence. It will certainly be necessary to trim down manpower establishments and reduce or even abolish vocations which do not contribute much to the combat efficiency of army units. It will also be necessary to increase the number of regulars, especially in the NCO ranks. In the longer term, if force structure is to be maintained at current levels, it is more than likely that national service will have to be extended to women, for a start, possibly on a selective basis, to fill up non-combat posts. GOH KENG SWEE Minister of Defence

With an open economy. Singapore will inevitably be affected by the uncertain international economic situation in the immediate years ahead. Without natural resources of its own, the Republic must move to minimise the adverse effects of international economic developments. In the labour field, the Ministry will continue to work with unions and employers to contribute to economic growth through the promotion of a stable and peaceful industrial climate, the fostering of a disciplined and productive workforce and the safeguarding of the welfare, safety and health of our workers. I Industrial Relations Singapore's main resource is manpower, trained and productive. Our workers must work harder, upgrade their skills and increase their productivity. Union leaders at headquarters and branch levels as well as workers should accept that future wage increases have to be orderly and related to higher productivity and economic growth. Fringe benefits which have escalated in recent years must not be extended in range or quantum. Those which are bizarre or not conducive to economic progress will have to be discontinued. The National Wages Council will examine the question of the full offsetting of its wage guidelines against all forms of increases of remuneration. It will also consider whether employees who job-hop should be granted the full wage increase recommended. Rationalisation of fringe benefits will also be looked into by the Council. At the plant level, employers will be encouraged to implement productivity incentive schemes to ensure greater efforts on the workers' part and reward for such additional performance. The Ministry will further improve its industrial relations services by adopting a more alert and positive approach to the prevention and settlement of industrial disputes. A departmental service will be introduced to build up a corps of experienced labour and industrial relations officers. II Manpower Utilisation Measures will be taken by the Employment Service to secure employment for more persons on its register of unemployed. The present Disablement Resettlement Scheme for the training and subsequent employment of disabled persons will be extended to industrially disabled workers. Although about 4 per cent of its workforce are registered as technically unemployed at the Employment Service, Singapore still has to grant work permits to large numbers of foreign workers. Young Singaporeans have become choosy about their employment preferring not to accept "hard" jobs even though they are better paid. They prefer to remain unemployed until a "soft" job to their liking is found. The Ministry of Labour is examining a study group's recommendations for encouraging Singaporeans to work in the construction industry. Studies will be undertaken of other industries which are avoided by Singaporeans so that corrective action can be taken. III Industrial Safety and Health Special attention will continue to be paid to reducing the accident rate of the construction industry and the shipbuilding and repairing industries. The Factory Inspectorate will ensure better compliance by contractors of the provision of life-line anchorages in view of the large number of construction workers injured or killed through falling from heights. It will conduct further studies on means of providing life-line anchorages for walls without openings. To reduce the number of workers being struck by falling objects, the lnspectorate will step up enforcement. Contractors will be required to provide safety measures such as safety helmets, overhead shelters and proper debris disposal facilities. They will also have to supervise their workers to ensure that they comply with safety rules. With more machines being used, training of operators in their proper handling will be intensified. Shipyard personnel and contract workers will continue to be trained in safety measures, ship-inspection and fire-fighting. Shipyards will be further encouraged to introduce self-regulating systems of safety and health as part of their management functions and assistance will be provided where necessary. The Factory Inspectorate will work with SISIR and professional bodies to produce codes of practice for the design and erection of scaffolds, formworks. machine guarding, lifting equipment and pressure vessels. Amendments to the Factories Act will be introduced to provide for enhanced penalties for offences which are likely to cause the death of or bodily injury to workers. The Ministry is studying a proposal to establish an Occupational Safety and Health Institute to provide training, consultancy and research in industrial safety and health. A report on the matter has been submitted by an ILO expert on occupational safety and health. The Industrial Health Department will take measures to protect workers from cancer-causing substances used in industry. Additional programmes to improve the competence of industrial health nurses will be introduced. IV Productivity The National Productivity Board will give greater emphasis on assistance to small and medium-sized local enterprises to improve their productivity. Training of supervisors and junior and middle management executives will be given more attention. Consultancy in small business management will be introduced while those in industrial engineering, management techniques and low cost automation will be continued. The expansion of such a service to systems analysis, management information systems and computer application techniques to industries will be examined. The Board will intensify its promotional work in the field of productivity. It will also assist in the formulation of productivity schemes. ONG PANG BOON Minister for Labour

The Ministry of National Development will plan and work towards better housing with improved social and recreational facilities, better infrastructure and public amenities in pleasant and gracious environment in the next 5 years. The importance of creating new parks and open spaces is underlined by the large number of people living in high rise flats. The Parks and Recreation Department will continue with its effort to improve our garden city. Six new parks will be developed at West Coast reclaimed land, Pasir Panjang Hill, Sembawang, Pasir Ris, Marina Centre and Tanjong Berlayer. Recreational facilities will be introduced into these parks wherever necessary. Appropriate planning policy will ensure the maximum utilisation of our scarce land resources and the creation of a pleasant and gracious environment. $20 million will be spent on kampong roads, bridges. jetties, street lighting and public utilities for the improvement of the rural areas. Housing and Public Projects Since 1960, the Housing and Development Board has completed about a quarter million housing units for 55% of our population. Under the fourth Five-Year Building Programme another 150,000 units will be completed by 1980. An additional 10,000 flats will be built in the Central Area to help reverse the population drift to the new towns. At this pace of development applicants will not have to wait longer than 1 - 1 1/2 years to buy or rent HDB flats. It is estimated that about 2 million people will live in HDB flats by 1980. The HDB will continue to strive to establish a closer rapport with the residents and will continue to seek their cooperation and assistance in providing an efficient, courteous and responsive management. HUDC flats are built for middle income citizens who are not eligible for HDB flats and who cannot afford private housing Ownership of HUDC flats is made easier as the purchase of the flats can be made with the assistance of the Central Provident Fund. 2,000 flats have already been built and sold. Another 1,000 new flats will be built by 1978 at Braddell Rise. Chancery Lane and Ulu Pandan. Middle income housing is also planned for the Central Area. The Urban Redevelopment Authority will systematically clear slums and renew the Central Area. Places of historic interest, however, will be rehabilitated and preserved. Entertainment and recreational facilities will be planned to promote activities after normal business hours. Transit and permanent resettlement centres, where required, will be built to resettle businesses. Our housing and industrial programmes make it necessary for the Public Works Department to construct and maintain a large network of roads. The Pan Island Expressway, the East Coast Parkway and the Woodlands Expressway are three major road projects under construction. Computerised traffic control will be introduced to maximise utilisation of roads. To cater to the interest of the growing number of pedestrians on our roads, landscaped footpaths, pedestrian malls and walkways will be constructed. The PWD is now engaged in the improvement of Paya Lebar Airport to adequately meet the projected growth in passenger and air cargo traffic over the next few years. The construction of a new airport with two runways on reclaimed land in Changi has begun. The first runway of the new airport is scheduled for service in the early 80's. Construction of the University of Singapore campus at Kent Ridge with facilities for the University to increase its student population from 3, 500 to 7, 500 will be completed by 1980. Work on Kent Ridge Hospital - a teaching-cum-general hospital with 750 beds - will commence in 1978. 36 primary schools and 30 secondary schools sited within the new centres of population will be built. In addition, the Department will also build hospitals, clinics, libraries, markets and food centres. Primary Production Within the limits of available land, self-sufficiency in pork, eggs and poultry meat will be maintained. For environmental control, pig farms will be relocated from the Kranji area to a non-catchment area. A central market for fruits and vegetables will be built at Pasir Panjang to replace the Clyde Terrace Market and other wholesale centres in the city which are affected by redevelopment. Resettlement In addition to the provision of HDB flats for residential cases, there will be alternative premises or cash payments in lieu for shops, resettlement facilities for specific trades and land for efficient pig farmers in Punggol. Flatted and terrace factories will be developed at Paya Lebar and Jalan Perang for the relocation of small and supporting industries for them to continue and to expand. Reclamation Reclamation to provide additional land for housing. industries, recreational facilities, roads and other public projects will continue. At the East Coast. 1,000 hectares (2,500 acres) of land have been reclaimed. Another 1,180 hectares (2,950 acres) are being reclaimed of which 600 hectares are for the development of Changi Airport. Reclamation will provide about 580 hectares (1,450 acres) of new land adjacent to the Central Business District. This will allow for the expansion of the old city and if needs be, the building of a new city of the future.

The Public Utilities Board has been steadily expanding to meet the increasing demand for electricity, water and gas Electricity The growth in maximum demand of electricity of 11% per year in 1975 and 1976 is indicative of the general trend of economic recovery in the Republic after the low growth of 3% in 1974 following the oil crisis. Over the next 5 years, a 58% increase is expected and more power projects are underway to cater for the 1980's. Stage I of Senoko Power Station has been completed and work is currently in progress on Stage II comprising three 250 MW units. This stage which is estimated to cost $522 million and is scheduled for completion in 1980 will increase the total generating capacity to 2090 MW. Plans for Stage III of Senoko are presently under study. For demand beyond the 1980's, another power station will be necessary and its proposed location is under consideration. Concomitant with the generation of more electricity is the extension of transmission and distribution system which will cost $791.7 million over the next 5 years. 69% of the Board's annual recurrent expenditure before depreciation and interest charges is on fuel oil for electricity generation. Continuous efforts are being made to increase operational efficiency of generators to conserve the consumption of fuel oil. As a result of increasing efficiency, the Board has, so far, been able to absorb the 10% increase (from $160 to $177 per ton) in the price of fuel oil since October 1975, without increasing the price of electricity to consumers. However, the latest increase in oil price will necessitate an upward revision of the tariffs. Economy in the usage of electricity will not only benefit consumers but will also save foreign exchange for the Republic. Water In 1976 daily consumption of water averaged 594,000 cubic metres. This is expected to increase to 820,000 cubic metres in 1981, an increase of 38%. The growth of demand for water has necessitated continuous development of new sources which are becoming more expensive Construction of Western Catchments Scheme, which will commence this year, covers the four new reservoirs by the damming of four rivers - Murai, Poyan. Sarimbun and Tengeh - in the western part of Singapore. These reservoirs will have a total storage capacity of 28.4 million cu, m. This scheme and the extension of the recently completed Choa Chu Kang Treatment Works, scheduled for operation by 1981, will cost $72 million. Like the Kranji-Pandan Scheme, water to the new reservoir flows through unprotected catchments and is more polluted than conventional sources. The water will have saline content as the reservoirs will be built in estuaries like Kranji and Pandan reservoirs. The treated water from these reservoirs will have a different taste but it will be completely safe for drinking and within World Health Organisation standards. This kind of water is to be expected from now onwards as water sources from the central protected catchments have been fully exploited. The cost of production of water is increasing with more expensive methods of treatment requiring sophisticated and costly equipment and chemicals to treat the more polluted raw water. Wasteful habits in the use of potable water must be stopped. The devastating effects of drought even in countries with abundant water resources were seen last year. Water conservation must therefore be a way of life for Singaporeans. Within the next few years, the Board will have to look into unconventional methods of increasing its water supply, like advanced water treatment methods to cope with anticipated demand beyond the 1980's. Feasibility studies and tests carried out at Jurong Pilot Plant, which was set up in 1974, have shown that with advanced water treatment technique, the recycling of water would technically be a feasible method of increasing water supply for the future. Gas With the continuing drive against air pollution, the demand for piped gas is expected to increase by 75% over the next five years, especially from the commercial and industrial sectors. To meet this increased demand, gas production facilities are being expanded. Three new naphtha reformers, each with a daily production capacity of 150,500 cubic metres will be added to the system. The old heavy fuel oil reformers will then be scrapped and only the more efficient pollution-free naphtha reformers will be utilised for gas production. These developments will cater for the demand for gas into the 1980's. New Headquarters The Board will be moving shortly into its new headquarters at Somerset Road. The centralisation of the various offices under one roof would enable better coordination and communication, The more conducive working environment will enhance efficiency and productivity. LIM KIM SAN Minister for National Development/Chairman, PUB

The Law Ministry, in addition to its responsibility for constitutional and legal matters which are handled by the Attorney-General's Chambers, will continue, in consultation with the various ministries, to draft parliamentary bills and subsidiary legislation authorised by acts of Parliament, to meet the changing needs of our society. The Criminal Law (Temporary Provisions) (Amendment) Act, the Evidence (Amendment) Act and the Criminal Procedure Code (Amendment) Act which brought about significant changes in the administration of justice, were brought into operation on 1 January 1977. The provisions of the Residential Property Act, which came into operation on 11 September 1973, are being administered smoothly. Changes in land values in the property market will continue to be monitored, and remedial measures, where necessary, will be taken. Demand as well as competing claims by Government departments, statutory authorities and the private sector on our limited land resources will increase with the expansion of commerce, urbanisation and industrialisation. State land must be kept free from encumbrances and where necessary, tenants and squatters on State land rehoused, to make available land for development by both the public and private sectors. Phased acquisition of land required for development, reclamation and maximum positive support and improved services by the various Government departments and agencies involved in land administration, will ensure optimum land utilisation for maximum economic growth and development. The Land Office, Registry of Titles and Deeds, Survey Department, Official Assignee and Public Trustee and Registry of Trade Marks and Patents will, in the exercise of their statutory functions, strive to provide improved services. E.W. BARKER Minister for Law

In the next five years the Ministry of Communications will develop Singapore as a major Communications Centre. Modern, efficient and comprehensive services in radio and satellite telecommunications, air transportation and shipping will be provided at competitive prices. Civil Aviation Government's aviation policy is designed to attract both freight and tourist traffic to Singapore. Additional facilities at Paya Lebar Airport will be constructed to meet projected growth in cargo and passenger traffic over the next few years, pending the opening of Changi Airport in mid-1980. All procedures will be simplified, streamlined and rationalised. An active promotion programme will be undertaken to publicise Singapore as an airfreight transhipment centre. Singapore will be developed as an airfreight centre to fully utilise the facilities and services available at Changi International Airport in the early 1980s. A liberal and conducive atmosphere will be created for international air carriers to operate in Singapore. Telecommunications Singapore's position as a major telecommunications centre will be further enhanced by expansion of the Sentosa Earth Station facilities and laying of new submarine cables to neighbouring, especially ASEAN countries. International subscriber dialing and telex services will be extended to more subscribers. The international "teleconference" service providing two-way audio-visual contact will be introduced in 1978 - 1979. The domestic telephone network will be expanded. The target by 1981 is 788,000 telephones giving a telephone density of 32 telephones per 100 population. This will be roughly double the present density of 16.4 telephones per 100 population. Maritime and Port Services The Port of Singapore Authority (PSA) now has 5 gateways handling 14.85 million tons of general cargo in 1976, an increase of 16% over the previous year. New cargo transportation and shipping technologies and mechanised methods of warehousing, cargo handling and storage are being developed to regain Singapore's position as the regional warehousing and transhipment centre. The main area for redevelopment is at Telok Ayer Basin where, because of reclamation for the Marina Centre, the whole pattern of lighterage and cargo handling and the transportation and transhipment of regional goods will undergo significant change. Measures are being worked to enable the lighterage trade to continue not only in the Singapore River but at Pasir Panjang as well with the same low costs, so that Singapore's competitive position will be maintained. The Singapore World Trade Centre (SWTC) at the new 12-storey Singapore Maritime Centre when completed will link Singapore-based businesses with more than 90 other world trade centres in 40 countries all over the world. New trading methods and systems with special communications links and backup services such as computer data banks will be provided to service these world traders. Road Transportation The Singapore Bus Service has made great improvement in the last two years. The good work must continue and standards improved. Depots and other maintenance back-up facilities are being built to reduce breakdowns to a minimum. Meanwhile the Government is studying a comprehensive transportation and land use plan for a rail-based Mass Rapid Transit System. Pending its introduction, SBS will be the mainstay of Singapore's public transport system. Postal Services Increased mechanisation in the sorting and delivery of letters and parcels will be installed. Mails must always be delivered safely and promptly. In many countries, trade has suffered because of inefficiencies in the postal system. This must not be allowed to happen in Singapore. The new Postal Complex at Jalan Eunos will incorporate modern mechanised equipment. 30 new post offices will be built in new housing estates, industrial estates, and newly completed urban centres in the next five years. More postal agencies and posting boxes will also be set up for the convenience of the general public. LIM KIM SAN Minister for Communications

The Ministry will continue to expand and improve the quality of the medical services within the limits of our financial capacity and manpower strength. Like other services, the health service is affected by mounting inflation. Health expenditure increased nearly threefold in 5 years, from $53m in 1970 to $154m in 1975 or $25.55 per capita in 1970 to $68.52 in 1975 (or $45.74 at 1970 prices - a 79% rise in 5 years), The primary concern will be to keep health expenditure at as low a level as possible through greater emphasis on preventive medicine, and selective institutional care for the acutely ill. The Ministry reluctantly has to accept the necessity that one has to pay for part of the treatment to ensure that costly medical treatment is not unduly abused. Hospital Development The new Singapore General Hospital will cost $200m. It is due for completion in 1980 and will have the most modern comprehensive of hospital facilities. There will also be a new hospital within the University campus at Kent Ridge costing $137m. When completed by 1985, it will have 750 beds. Development of Dental Health Services New school dental clinics and outpatient dental clinics are planned for the next 5 years. The new $7.5m Institute of Dental Health at Hyderabad Road will be completed in mid 1977. There will be better training facilities for dental therapists, nurses and technicians. Although a large volume of curative work is being handled, the main emphasis is on preventive dentistry and dental health education. Preventive Medicine Nearly two-thirds of total operation costs for the whole medical service are incurred in running the hospitals. This is compounded by the rising demand for in-patient treatment. There has been a 20% increase in hospital admissions, from 135, 952 in 1970 to 164, 205 in 1975. With smaller families and better education, there is the necessity for better medical services. To maintain and improve standards, expensive hospital care is confined to those who need it. On a per capita basis, the outpatient services have been most cost-effective - $4 per outpatient attendance compared to an average of $48 per bed per day for a general hospital. The logical solution is that greater attention will have to be paid on primary health care, preventive medicine and health education. The Outpatient, Maternal and Child Health, and School Health Services were integrated in mid 1976 to streamline primary health care services. New-type poly-clinics combining curative and preventive medical/dental treatment are being planned in such major Housing and Development Board Towns as Ang Mo Kio. Bedok, Telok Blangah. Woodlands and Geylang East. Extensive immunisation programmes against infectious diseases will continue More stress will be given to educate the public on how to stay healthy through regular national health campaigns. These campaigns will explain the factors which cause ill health, and how mental and occupational health can be protected by improving the working and living environment. The plight of the geriatric population (those over 60 years) who are more vulnerable to illness because of the degenerative process will not be overlooked. Though they constitute 6.6% of the population (expected to rise to 9% in 25 years), they comprise 15.5% of all hospital admissions and 27.4% of long-staying patients The Home Nursing Foundation, a joint project by the Government and community, was recently established to bring nursing care to the disabled old, chronic sick and mentally ill patients in their homes Such home nursing will enable the hospitals to be put to optimum use for treating the acutely ill. Licensing of Medicinal Products A new Medicines Act 1975 has been passed. It will soon regulate the manufacture and sale of medicinal products to ensure their safety, quality and efficacy. TOH CHIN CHYE Minister for Health

Infectious Diseases No case of smallpox, yellow fever or plague has been reported for nearly two decades. Diseases like cholera, typhoid, malaria and dengue haemorrhagic fever have been brought under control and the incidence of these diseases has been reduced. However, sporadic outbreaks will continue to occur because our strategic location exposes us to the constant risk of introduction of some of these diseases. Strict surveillance and control of vectors and health education of the public must continue. Though modern sanitation and potable water are available to most householders, minor outbreaks of typhoid will occur through contamination of food. The Ministry plans to screen and inoculate all food handlers to further reduce the incidence of typhoid. Some 49, 000 food handlers have so far been inoculated and 3, 300 screened. A record of typhoid carriers will be maintained. Ultimate success in typhoid control will depend on the full cooperation of the public and food handlers in maintaining a high standard of personal and food hygiene. Air Pollution Air pollution is on the increase. The presence of photochemical oxidant (smog) has been detected on certain hot and calm days in some parts of the Island. As emissions from industries, power stations and vehicles continue to increase, antipollution measures will have to be enforced more stringently. The sulphur content of fuel oil will have to be reduced to abate sulphur dioxide emissions from industries and power stations. Some industries have been reluctant to comply fully with anti-pollution measures But the long-term health effects of air pollution in our densely populated Island demand that noxious emissions be controlled without affecting the viability of some industries If air pollution is not checked early, its effects may be irreversible or the remedial measures will be too costly in the future. Hawkers Proliferation of unlicensed hawkers has been brought under control. The licensed hawkers in Singapore numbering 28,750 are sufficient at present to cater for our population. No new hawker licences will be issued because there is a need to divert manpower to the more productive sectors of the economy. However, an adequate number of stalls in markets and food centres will be available for allocation to those suffering genuine hardship and unable to seek other employment. Of the 28,750 licensed hawkers, 17,000 are already within premises. There are still 11,750 hawkers who need to be resited from the streets. Yet many vacant stalls exist in various markets and food centres. Many street hawkers are reluctant to move into premises and prefer to remain in backlanes and other temporary sites which do not have basic amenities. Henceforth, street hawkers will be required to accept stalls offered to them or cease to do business. The existing nominal hawker fees will be revised upwards in stages in view of the escalation in the cost of building and maintenance of markets and food centres. Sewerage The provision of safe drinking water and modern sanitation services in public housing has helped to improve public health and the quality of life. In 1976 75% of the population was served with modern sanitation compared with 52% in 1966. By the end of 1981 this percentage will increase to 85. In the past five years $186 million have been spent on the main sewerage system and treatment works. Over the next five years a sum of $550 million will be spent on further expansion. E.W. BARKER Minister for the Environment

Social Welfare The new approach in social welfare is to place greater emphasis on the developmental and preventive aspects of welfare work. Priority will be given to the welfare of the young, the aged and the strengthening of the family unit. In the delivery of social services, the Ministry will promote greater community involvement. Voluntary social service organisations will be encouraged to expand and improve their programmes of activities including the provision of residential services. Private and industrial establishments will be assisted to provide creche facilities for working mothers. The Ministry will ensure that creches are properly run and help in the development of new creches. The Community Probation Service will be strengthened. More volunteers will be recruited and trained to assist in the rehabilitation of offenders on probation and aftercare. A Volunteer Social Service Bureau has been set up. The Bureau will recruit, train and deploy volunteers for voluntary social work on a national scale. Residential care of children and young persons will stress the inculcation of good citizenship and work discipline. The needy aged will be assisted to maintain their self-dependence within the community. Sports The Singapore Sports Council will continue to emphasize mass participation and the implementation of a "Sports for all" policy. New sports facilities will be developed under a Master Plan for sports facilities up to 1982. They include provisions for 30 squash courts; 70 tennis courts; 7 swimming pools; 3 football pitches and 2 multi-purpose indoor stadia. These projects will be constructed at an estimated cost of $20.95 million to meet the recreational needs of Singaporeans. Fitness schemes will be implemented to encourage more people to take up physical exercise on a regular basis. A National Aerobic Fitness Award Scheme has been launched to enable individuals to know their level of physical fitness. A fitness park providing 10 exercise stations along a jogging trail has been built for joggers and others who are interested in physical exercise. Constituency sports participation will continue to be implemented through a programme of seven popular sports. The Fire Service The Singapore Fire Brigade will be prepared to meet the task of fighting and preventing fires in high-rise buildings. A High-rise Unit has been formed to undertake regular inspections of high-rise buildings and to ensure that fire protection equipment installed in the buildings are maintained in good order. Officers of the Brigade are given training locally and abroad to upgrade their skills. Modern fire-fighting appliances have been purchased to enhance the Brigade's operational efficiency. A scheme for full-time National Service in the Brigade was introduced in January 1976. Additional batches of National Service Firemen will be enlisted. They will be posted for operational duties at the various fire stations on completion of their basic training. The Brigade will take over the Hospital Emergency Ambulance Service to operate a unified Emergency Ambulance Service for the Republic. The Service will be equipped with a VHF communication system which will enable the ambulances to link up with the Accident and Emergency Centres in the hospitals. Three new fire stations will be constructed over the next five years at Bedok/Changi, Ang Mo Kio and Woodlands. A Fire Service Act will be introduced to facilitate the work of the Brigade in protecting life and property against fire. Mosque Building Programme Government's policy is to reserve sites in satellite towns for the building of mosques, churches and temples. In the next five years, mosques in Toa Payoh, Queenstown, Jurong, Woodlands and Bedok/Chai Chee will be completed under the Mosque Building Fund Scheme. OTHMAN BIN WOK Minister for Social Affairs

The main aim in education is to strengthen moral and civics education, to raise the effectiveness of the education system. This means we have to improve the teaching and the learning of languages and raise the standards of technical education. Moral and Civics Education Moral and civics education is mainly taught through the subject Education For Living (which is a combination of Civics, History and Geography) in the pupils' mother tongue. The aim of the subject is to inculcate social discipline and national identity and to imbue in pupils moral and civic values. These virtues are also fostered through the daily flag raising and lowering ceremony, the weekly assembly talks by principals and teachers and extra-curricular activities. Greater effort will be made to ensure that pupils imbibe the tried and tested Asian cultural and moral values. While pupils will learn and acquire more and more knowledge of science and western technology and be proficient in the English language, they will be taught not to adopt the life styles and values of the West that are alien and pernicious to Singapore society. The Education System The education system has been revised to improve its effectiveness. Consequently the enormous wastage in terms of pupils not benefiting from the system and having to leave school prematurely will be drastically reduced. The following measures have been implemented, and as they progress they will be monitored and improved upon:-

Cultural Policy It is Government policy to develop Singapore's rich cultural heritage derived from the Malay, Chinese, Indian and western civilisations, and, through their cross-fertilization, to evolve a national cultural identity. The Ministry will continue to organise a wide range of activities to promote a better appreciation of our cultural heritage. This will provide our young with the necessary cultural ballast against the erosion of traditional norms and values. The Ministry will improve its present range of cultural activities to meet growing demands for more sophisticated programmes. Every encouragement will be given to those inclined towards artistic and creative pursuits, with emphasis on excellence and originality. The literary and performing arts will receive greater attention. Apart from sponsoring competitions, exhibitions and performances, the Ministry will provide financial and other forms of assistance to deserving amateur cultural groups. Cultural festivals will be held to provide local artistes with more opportunities to display their skills and talents. The facilities and equipment for theatrical performances at both the National Theatre and the Victoria Theatre will be improved. Broadcasting and Television Our radio and television services will continue to inform, educate and entertain. The production and choice of programmes will take into account the need to promote better understanding of one another in our plural society. By 1978, 85 per cent of the total output on Television, including all locally-produced programmes, will be in colour. This will call for even higher standards of production and presentation. For radio listeners, the quality of transmission will be further improved with the installation of new higher-powered transmitters and the resiting of the transmitting station. National Library The registered readership of the National Library and its branches is expected to reach one-fifth of the total population by 1981. To cope with increasing demands, the library system will be further expanded by providing additional mobile library services and extending opening hours. The acquisition, cataloguing and circulation of library materials will be computerized. One branch library will be opened in Katong in 1978. Two more are planned for Telok Blangah and Geylang East. With decentralization, the Central Library in Stamford Road will concentrate on specialised reference and information services. Some 85, 000 volumes of books will be added each year to the library collection The number and range of audio-visual materials will also be substantially increased. National Museum With the completion of its Art Gallery, the National Museum has become a centre for local and international art exhibitions. When completely renovated by 1979, the Museum will have more space and better facilities for the conservation and display of exhibits and cultural properties. This would stimulate local organisations and private collectors to donate or loan their collections. The existing museum activities will be expanded to include weekly conducted tours of the galleries and loan exhibitions for schools to foster better appreciation of our cultural heritage. People's Association The People's Association will continue to play its role in nation-building. It will draw in and encourage more people to involve themselves in matters of public interest and national development projects. With half of the population already living in the HDB estates. the Association will gear its programmes to promoting greater social cohesiveness and neighbourliness. The public will be encouraged to participate more actively in community work, More volunteers will be required to serve on the Management Committees. Women Sub-Committees and Youth Groups. New and better equipped community centres are necessary to cater to the changing needs of the population. Ten such community centres are under construction. Several others are being planned for new housing estates and to replace those affected by development projects. JEK YEUN THONG Minister for Culture

The Ministry will continue to emphasise in its programme of activities how science and technology coupled with work attitudes can stimulate economic growth. Technician Training The construction of the new $41 .8 million Polytechnic Campus at Dover Road will be completed by early 1978. About 4, 000 students are currently attending classes at the new Campus. The final move of the complete student population of 4, 800 full-time students and 3, 800 part-time students to the new campus will commence in December 1977 and the Polytechnic will be fully housed at the Dover Road Campus by June 1978. The second phase of the $15 million expansion project of the Ngee Ann Technical College will be completed this year and the College will have modern up-to-date facilities for technician training in the relevant fields. Science Council The Science Council will expand its activities aimed at stimulating an awareness of the impact of science and technology on society. A competition for vocational institute students along the lines of its very popular Science and Industry Quiz will be initiated this year. Science Centre The Science Centre building was completed in October 1976 and efforts have been stepped up to have the exhibits construction programme completed for the opening of the Centre by the end of this year. The Centre will display exhibits on themes such as energy, communication, time, evolution genetics and ecology and will have adequate space set aside for young scientists to plan, construct and display their own exhibits. Department of Scientific Services The Department of Scientific Services will take over the functions of providing microbiological testing for pharmaceutical products for the Ministry of Health as well as the private sector under the new Medicines Act, The Department will expand its capabilities to provide fuller support to the Ministry of Home Affairs in its campaign to control drug abuse. JEK YEUN THONG Minister for Science & Technology

Singapore's foreign policy, as in the past, will be governed by two objectives -strengthening and consolidating domestic economic progress and security on the one hand and the active promotion of regional cooperation to maximise regional peace and prosperity. As far as global peace and economics are concerned, Singapore is in no position to influence effectively the course of world events. The principal actors in this area are a handful of rich and powerful nations. Singapore's policy would be to stay out of their conflicts but cooperate with them where their policies serve our national and regional interests. Insofar as regional politics is concerned, Singapore is aware that Western influence and involvement are no longer dominant factors. The major powers will still treat the region as an area of contest but except for Japan and China, the other powers no longer regard Southeast Asia as crucial to their interests as it once was. Nevertheless the major industrial powers are still important to us economically and their policies will affect our security for better or for worse, Their investments, their markets and their technology are necessary for our continued economic progress. Equally our security and independence would be jeopardised if, through unwise and short-sighted policies, we unwittingly bring about the dominance of the region by a single great power. In the light of these new realities our foreign policy must be flexible and sophisticated. Hard facts rather than wishful thinking should dictate decisions. We cannot, in an increasingly turbulent area, predict how events would develop but we must be prepared to discard outdated policies in favour of new approaches if circumstances demand them. We believe that ASEAN could be a stabilising factor and a source of strength for its members provided we give regional cooperation more substance than we have done the past ten years. If we do not move faster than we have done so far, then events could overtake us. And then ASEAN might not have either the vitality or the collective strength to cope with them. Regional cooperation should not merely stop at ASEAN. New states with different social systems have emerged in Southeast Asia. It is vital that the ASEAN states should not conceive of relations between them and the new states in terms of confrontation for such an approach must ultimately be disastrous to both sides. It would be unrealistic to ignore the fact that there are mutual suspicions and fears between some of the ASEAN states and the new states. But given time and firm but flexible policies we believe that the existence of different social systems are not insuperable barriers to the development of sound and mutually beneficial relations between the Southeast Asian countries. We must believe in this because the alternative is protracted conflict which will only open the way for outside manipulation and eventual domination. S RAJARATNAM Minister for Foreign Affairs

The problems of internal security, law and order, and the drug menace will continue to preoccupy this Ministry. The problems are somewhat inter-related. Drug addicts will resort to crime to get money for their drugs. Drugs can be used as a weapon of subversion to weaken the will and sap the vitality of the people. There will be new approach and more comprehensive measures taken, and better co-ordination among the enforcement agencies to deal with the problems. Wherever possible the large pools of National Servicemen in the Special Constabulary and Vigilante Corps will be used in implementing the measures. Internal Security The communists will continue to be the main threat to Singapore's internal security. They will not be able to create widespread violence and chaos so long as unemployment and inflation are kept in check and the Government remains efficient and uncorrupted. They will try to build up their underground networks in Singapore and provide logistics support to the terrorists in the Malaysian jungles. They may try to launch sporadic acts of sabotage and violence to shake business confidence in Singapore. The Internal Security Department will continue to seek out and destroy communist underground organisations. It will neutralise those whom the communists use as united front leaders. As a precaution vital installations will continue to be guarded by National Servicemen in the Special Constabulary and Vigilante Corps. Law and Order The physical development of Singapore especially over the last ten years has resulted in major shifts in population, new roads and new centres of activity. For more efficient service and deployment, the boundaries of the existing eight Police Divisions will be redrawn and two new Divisions eventually created. By 1980 almost 75% of the population will be living in HDB estates. Besides Queenstown and Toa Payoh Estate which already have a police station each, other satellite towns, namely, the Jurong Town. Bedok New Town, Ang Mo Kio Estate, Telok Blangah Estate and Woodlands Estate, will have their own police stations. Eventually, all Special Constabulary personnel living in HDB estates who are given patrol duties will patrol in the neighbourhood of their homes under the Neighbourhood Policing Scheme. The industrial, commercial and financial development in Singapore has changed the priorities of the Police Department in two ways. First, the opportunities to commit fraud, criminal breach of trust and other "white collar" crimes have increased. Such cases will be increasingly complex. To deal with this new situation the Commercial Crime Branch of the CID will be strengthened with more lawyers and accountants. Second, new shopping complexes, departmental stores and high-rise office blocks and private flats mostly employ security guards. The Police Department will take this into account when working out new methods of policing. A Crime Prevention Branch has been established in the CID. Besides educating the public in crime prevention this Branch will advise developers and managements of commercial, industrial and residential buildings on built-in security measures. Roads must be made safer for all road users. From the inception of the Points Demerit System on 1st March, 1975 till the end of 1976, 69 motorists have been suspended from driving and another 1 736 warned, The effect on road safety was however not satisfactory. The number of accidents involving serious injury dropped by some 8.8% in 1975 but increased slightly in 1976. The number of deaths caused by road accidents hardly declined. Of the 69 motorists who were suspended from driving, 31 were bus drivers and 16 lorry drivers. This is because the driver of a larger vehicle knows that in any collision with a smaller vehicle, it is unlikely that he will be hurt seriously. He expects all smaller cars to give way to him. This might-is-right mentality must be reversed. With economic progress there will be more heavy vehicles of all types on the road. Owners of private cars will continue to change over to smaller cars. The law will be changed to provide for two things. First, in any collision between two vehicles of different size and weight the driver of the larger vehicle will have to prove that he is not in the wrong, i.e, a presumption which he can rebut. Second, in any fatal accident the driver who is charged in court for dangerous driving will immediately have his driving licence suspended until his trial is completed. Fatal accidents and those leaving the victims maimed result in a loss to society especially if the victims are young. The Points Demerit System will be revised so that offences such as inconsiderate, careless and dangerous driving will carry more penalty points. A nationwide "Road Safety For You" Campaign will be launched in June 1977. Its aim is to remind both motorists and pedestrians of the need to observe the Highway Code. The Drug Problem Almost 90% of those detained in 1975 for drug abuse were between 15 - 29 years old. In 1970 this age group was estimated at 582, 900 accounting for 28.1% of the population. By 1980 it is projected that this age group will have increased to 810, 000 or 33.8% of the population. The spread of the drug problem must be stopped quickly. Drug abusers and addicts must be flushed out and isolated for a sufficiently long period to prevent them from infecting others. To do this the Police, Special Constabulary and Vigilante Corps will be used extensively to round up drug addicts. More centres will be established to rehabilitate the addicts. The Central Narcotics Bureau will concentrate on smashing the drug supply networks. To make it more difficult for subversives, drug traffickers and criminals to nip into and out of Singapore the Immigration Department will introduce exit control early in 1978. By that time the Marine Branch of the Police will have intensified the patrolling of the Straits of Johore. Similarly, it is necessary to make it more difficult for subversives, drug traffickers and criminals to carry on their illegal activities in Singapore unnoticed. National Servicemen with police training will provide a good coverage of the vicinity of their home and place of employment. It is estimated that by 1980 there will be 4300 full-time National Servicemen on active duty and 6800 Reservists in the Special Constabulary and Vigilante Corps. There will also be some 66, 000 part-time National Servicemen in the SC and VC. Many of them will be organised to serve as a link between the enforcement agencies and the people. In HDB estates they can serve in block committees, one to each or several blocks of flats. With the best of prevention there will still be criminals and prisoners. Since April 1976 the Singapore Corporation of Rehabilitative Enterprises (SCORE) has introduced new industries in the prisons and created new jobs for 740 prisoners. At the end of 1976, 2972 prisoners were productively engaged. The remaining 305 prisoners will be given work when the new workshops are ready. SCORE will next make the traditional prison industries such as laundry, furniture-making and metalwork more competitive. SCORE is planning to organise a production co-operative for discharged prisoners who cannot find jobs on their own. CHUA SIAN CHIN Minister for Home Affairs

A Philosophy of Government Some 40 years ago, in the depths of gloom of the last war, the British worked out their Beveridge plan, a welfare state which will care for people from cradle to grave, from womb to tomb. Unfortunately it has not led to a society where all men and women are equal in health and opportunities. Indeed, they are locked in bitter class conflicts. They, the British, who taught us that excellence should be rewarded and honoured in order that all can benefit from the exceptional talents of the few, have now ended up by punishing the talented few, to satisfy the doctrinal follies of the even fewer. In May last year, several of my colleagues and I had the privilege of an extensive tour of China, a completely different society in which all men and women have to find satisfaction in hard work, and recognition, not in material rewards, but in public approbation. China may be too austere, too severe a model, for Singaporeans. We have come to expect many of the conveniences of life as essentials. Nevertheless, considering the state of our economic development, our workers should do well to remember that China, which today has the hydrogen bomb, the missiles and the satellites, got there through sheer hard work, often with nothing in hundreds of millions of bare hands than the simplest of agricultural implements, like the shovel and the hoe. For Singaporeans, it cannot be a simple copying of either China, the Malaysian archipelago, or India, from whence most of our ancestors came. Nor can we be a copy of Britain, which governed Singapore for some 150 years, but as a colony through an appointed governor, not an elected Parliament. We are different from China, the Malaysian archipelago, India and Britain. We are Singaporeans. We must seek practical solutions, solutions which will work in our context, to our problems which are basically Southeast Asian. For example, material incentives, strenuously condemned in some communist countries are very necessary for Singapore's continued economic growth. And let us not deceive ourselves. Continued economic growth, however slower it has become compared to what it was before the oil crisis, is most necessary if we are to avoid sliding back to the harsh poverty and degradation of the years during and after the war, until recovery in the late 1950's. Indeed, in 1965, when we found ourselves suddenly out all on our own, without enough land to grow food to feed ourselves, many doubted whether Singapore would survive, even with the protection of British and Commonwealth troops. And in 1968, when the British announced they would withdraw, nearly everyone wrote us off. Even some of our staunchest friends thought that the end was imminent and inevitable. However, the people of Singapore, now a more tightly-knit society, had the will to succeed, They supported their government in a national effort to solve the apparently unsolvable. Together, people and government put in the hard work. Imaginative policies and tough measures enabled us to rise from the near-despair of the 1960's, to the relative security of today. We have more than trebled the average earnings of the modal group of workers since 1965; we have in money terms increased our GDP from $2.9 billion in 1965, by five times, to $14.7 billion in 1976. This was achieved by a generation that did not flinch from hardship. We put national solidarity over and above differences of race, language, and culture, And there was that willingness to subordinate the individual interest to national interests to ensure that Singaporeans would not go down, Our problems are now vastly different, The young, with only faint memories of the anxious moments of the crises and hardships of the last 20 years, crises and hardships their parents and their elders still remember vividly, now take the relative prosperity of Singapore as the norm. This attitude, the high expectations, the desire to seek jobs in comfortable surroundings, the impatience, indeed the intense haste, to succeed financially - they could be sources of weakness. External economic factors have now become unfavourable. The young may yet get their baptism of the harsh facts of life. In 1965, after Separation, and 1968, when the British forces started to withdraw, external economic factors were favourable. Our friends and allies in the West feared for us. Because the West still had strategic interests in this part of the world, they went out of their way to help us. Today, they themselves are in difficulties. World economic recovery is still sluggish and uncertain. The price of oil is dependent on the Saudis and the Emirates, and will turn on America's determination to resolve the problems of the Arabs and the Israelis, The programmes and policies which are set out in the addenda spell out what the government proposes to do in the fields of finance and economics, social and medical services, education and defence. They are all based on this inexorable premise, that rewards must be correlated to work, and must correspond to the contribution one makes to the total national well-being. We believe one truth to be self-evident: that more and more pay for less and less work must lead to greater and greater borrowing and eventual bankruptcy. However difficult the going, and whatever the surprises and setbacks, we can overcome them provided we stay alert and trim. The decisive factors are morale and will. If our people are determined to succeed, then realistic policies can be made to work. To meet unexpected contingencies, we can adjust and adapt our policies. Man does not live by bread alone. Hence we take immense pride that in the past two decades we have begun the process of forging one people out of disparate groups brought together by the accident of history. Disasters, floods and famines in China, India and the archipelago around us, led to successive waves of migration of different peoples of different races, different religions and different cultures, We have become a more integrated society than we have ever been in the past. More and more, the differences between us, whether ethnic, linguistic or cultural, are being blurred, as our children go to the same schools, regardless of their parents' wealth or status. We share a common destiny. Each can keep his lifeline to his own culture and value systems through his mother language. However, we are enlarging the common ground we all share. All learn not only their mother tongue, but also the English language in our schools, the first to keep our identity the second to get access to science and technology, and facilitate commerce and the expansion of industry. We have a more equal and more just society than it has ever been in the past. This has only been achieved because we have eschewed punishing those who have achieved more and earned more, because they have worked harder or shown greater enterprise. But the government is committed to help the most needy. They should never be allowed to become a permanent burden on the rest of the community. They should be helped through better education and health because then they can be better themselves. We have established high standards of education and health. They are a heavy drain on our scant resources. With a more favourable environment, we expect the less successful to have the chance to do better, to improve themselves and to make a greater contribution to their own well-being. This is the philosophy which underlies all policies of the government However, it is the spirit of the people which can ensure the success of these policies. LEE KUAN YEW Prime Minister