Mr Speaker, Sir, allow me first of all to welcome the 18 new PAP MPs to this House. They represent the result of many years of search by the PAP for suitable candidates for elections to represent Singapore. I also welcome Dr Lee Siew-Choh. Although he is wearing a new badge now I do not think he is really a new MP because he represents an era way back in the 1960s. We believe that the 18 new PAP MPs are representative of their generation. I therefore listened with greater interest to their views because what they say will tell us what their generation thinks. As I sat there listening to the new MPs and, of course, to some of the older ones too, my mind went back to February 1977. I sat where Charles Chong now sits. On my left was Rahmat Kenap, Member for Geylang Serai, and further down, N Govindasamy, Member for Radin Mas. I never got to know N Govindasamy well because he passed away one week after Parliament opened. Rahmat Kenap served four terms. He retired in 1980. He was a Member for Geylang Serai from 1963 to 1980. On 23 February 1977, the Prime Minister spoke to Members. Those who were here will recall the marathon speech which the Prime Minister made. It lasted two and a half hours. He crammed his political experience and thoughts into those two and a half hours. Those of us who were here benefited from that speech. Let me use his words to convey the main theme of his speech, and I quote him [Vol. 36, col. 404]: 'Perhaps I ought to begin by saying that they [the new MPs] ought to take themselves seriously because we, on this side as Members of the Government, take them seriously. Upon us is the burden of finding a successor Government worthy of its responsibilities. It is not an easy job.' I looked at the Frontbench, quite puzzled. The Prime Minister looked young and vigorous. He was 54 years old, only about two or three years older than Ong Teng Cheong is today. I looked at Dr Toh on his right, and Dr Goh Keng Swee on his left. They were older than the Prime Minister but they still looked young and vigorous. And there were the others S Rajaratnam, Ong Pang Boon, Jek Yeun Thong, Chua Sian Chin, Lim Kim San, Othman Wok, E W Barker 11 of them occupying the Frontbench. They did not look old to me either. In fact, in my mind I was expecting one of them to succeed Mr Lee as Prime Minister. I did not understand the full import of the Prime Minister's message until much later. Self-renewal was still not a common term; it was still not in vogue. It became a common term only after 1977 or so. Over the years I came to understand the significance of PM's passion for self-renewal and what it is all about. In essence, it is about durable leadership to see Singapore through. In other words, without durable leadership Singapore cannot survive. The Prime Minister used to tell me and Chee Onn over lunch, and other meetings, that death is only one heartbeat away. And he asked us many times, repeatedly, what would happen to Singapore if something untoward were to happen to him. In fact, he put it more graphically. He said, "If I were to be knocked down by a lorry, and it can happen because I am on the road, what would happen to Singapore? Or if you think that is not possible, unlikely, because I have my backup cars, what if I were on a plane and the plane crashes? What happens? Who takes over Singapore? Who looks after Singaporeans?" He shocked Chee Onn and I into thinking about Singapore's problems, about Singapore's prosperity, growth, survival, after the Prime Minister. Today, the Frontbench is occupied by the younger Ministers, except for the Prime Minister. But I think we should drop the term "younger" from today onwards. If you look around, I do not think there are any Ministers older than ourselves. So we are the Ministers and let us not talk about younger Ministers anymore. The Prime Minister has succeeded in handing over power; transition has been smooth. Many might not believe it, but we have been more or less in charge since December 1984. When I was appointed Deputy Prime Minister, the Prime Minister and I agreed that he would not introduce any new policies unless I agreed with them. The reason is simple. If I am uncomfortable with any policy of his or any suggestion which he wants Cabinet to adopt, he would not be there to see through the implementation and the consequences of the policies. I will be answerable. My colleagues and I will be answerable. So we have that agreement. And any policy that was introduced since December 1984 my colleagues and I are answerable. This Government, therefore, is not a new government. But there is still a difference between now and the situation just after 1984. We are now in complete charge of the Government. If the Prime Minister does not agree with us on certain policies, we debate them and put them to a vote; and we can outvote him. And it has happened. We have outvoted him on certain policies and we decide. We are in charge, and the Prime Minister has agreed that that is the way it should be. He gives us his inputs; we value his inputs, but we take the decisions. Therefore, do not expect any sudden shift of gears, sudden reversal of policies or any dramatic movement, heading Singapore in a different direction. Of course, we will take a fresh look at policies, as suggested by Mr Chandra Das. We always do, always looking for new remedies to old problems, and remedies to meet new problems. We do that all the time. If you look up the President's Addresses since December 1984, you will find that fresh approach to problems. We have been responsible for all the President's Addresses since then. This current Address which is now being debated by the House, was drafted by BG Lee Hsien Loong based on the line I gave him. All the Ministers contributed their ideas. They commented on the draft. We discussed and, of course, the Prime Minister also contributed some drafting amendments. And the result is the President's Address before the House. If I may perhaps share with you how we work. We work closely as a team. No Minister is out to corner power and no one is pushing his personal political agenda. We meet before Cabinet meetings, we discuss our ideas. And if a Minister has an idea or a policy which he thinks is politically controversial, he would normally circulate a paper to the others. And we brainstorm, debate, contend, after which he would put up his paper to Cabinet. That is how we work. So major decisions of the Government are taken by Cabinet as a whole. They are not the policies of individual Ministers. And I thought I should make this point because I watched with some amazement and alarm that when an unpopular policy is introduced, Members of Parliament and people outside, would attack the particular Minister. Dr Yeo was criticized and attacked for the diesel tax policy on taxis. That is not Dr Yeo's policy. He is merely the Minister in-charge. It is our policy as a government. We stand by the policy and we are answerable for it collectively. Likewise, the Minister for Law, Marxist arrests, amendments to the Legal Profession Act, some of the ideas may be his, but we stand by those amendments and by those policies which he has introduced. We use each other's strengths to maximize the strength of the team. I use them, and I am not at all afraid of using other people's strengths for the benefit of the Government. On legal matters, all of us consult Jayakumar. I use him generously. On political matters, as you can see, I take full advantage of BG Lee's capability to articulate a point strongly. I take advantage of him to draft the President's Address. If I have to reach out to the Chinese ground, and because I was not educated in Mandarin, my knowledge of Chinese is still somewhat limited, I can either use BG Lee or Ong Teng Cheong. For union matters, of course I take advantage of Teng Cheong's links with the unions. So we work together as one cohesive team, taking advantage of each other's strengths and fortifying each other in the process. If I may come back to the Prime Minister's speech. I quote his theme on getting people to join the political leadership: 'The problem is really so simple, yet it has been solved only a few times in a few countries and only over certain periods of time a one-man one-vote, to produce a group of men who can provide a continuity in good government, change of policies, flexibility, to reflect the changing moods of an electorate.' That is the essence of the problem which the Prime Minister faced. And that is the essence of the problem which we face again today. It is the same problem, the same fundamental problem of getting people with the strength of character, the conviction, the dedication, and the sincerity to serve Singapore. Compare today with PM's time, I think we have a more difficult problem looking for people. The talent pool available to us is a Singapore pool. For the Prime Minister, he had a larger pool. His Cabinet of 1977, for example, had quite a few coming from outside Singapore. Goh Keng Swee, born in Malacca; S. Rajaratnam, Sri Lanka; Ong Pang Boon, Kuala Lumpur; Hon Sui Sen, Penang; Chua Sian Chin, Malacca. Look at all the Cabinet Members here today. All of us were born in Singapore. But I am not complaining. I think I have a good team. We may be politically less experienced than the Prime Minister's Cabinet of 1977. But intellectually and technically, I believe we are just as competent, if not more competent. And we have the advantage of practical experience in business. Take Richard Hu as an example. He was the former MD of Shell Singapore. When he retired, he worked as Managing Director of MAS, and we persuaded him to join the Government. So he has practical business experience of a very high level. Dhanabalan, I believe that had he not joined us, he would have been the President of DBS Bank. Tony Tan, prime candi- date for chairmanship of OCBC. Yeo Ning Hong, he worked in a pharmaceutical company. Ong Teng Cheong, a successful architect. Wong Kan Seng has experience in managing people and operations in a multi-national electronic company. So if we compare ourselves with the Cabinet Members of the Prime Minister's team, I think it is not a bad team. But the problem will become more and more difficult for us. As you can see, in the last exercise to recruit candidates for the PAP, we had reached down to the level of those below 30. I have been personally involved in this exercise of finding people who can help make the leadership of Singapore durable and I know how difficult it is to find them. It is not just a question of not having enough talent for the political leadership. You have got to find talent to run the civil service, to man the High Court Bench. And again, if I may illustrate how difficult it is to find people, let us look at the present High Court Judges. Where did they come from? Six out of 10 High Court Judges including the two Judicial Commissioners were born outside Singapore. Chief Justice Wee Chong Jin, born in Penang; Justice Sinnathuray, Singapore; Justice Lai Kew Chai, from Perak; Justice L.P. Thean, from Selangor; Justice Punch Coomaraswamy, Segamat; Justice Chan Sek Keong, Ipoh, Perak; Justice F.A. Chua, Singapore; Justice A.P. Rajah, Negri Sembilan. The two Judicial Commissioners, Mr Chao Hick Tin and Mr Joseph Grimberg, were born in Singapore. And we are talking about the incumbents. When they retire, where do we get the people to replace them? The talent pool for politics is not the entire adult population of Singapore. Last year, I invited an accountant from an international auditing firm to be our candidate. He turned me down. Because to be a candidate for the party, he had to leave his job. That is the regulation of the company. And likewise, this is the regulation of many international companies, oil companies for example. Zulkifli, when we invited him to be our candidate, had to resign from his company. That is his company's policy. Banks, foreign banks, I think as a rule discourage their executives to take part in politics. And I am not even talking about the strength of character or the commitment of the candidates. I am just talking about the pool itself. Many capable Singaporeans who work in these foreign firms are not available to us. Civil service, SAF, Police, these officers are not available to us. When they join us in politics, they have to resign. If they think they can make it to an office position, they may calculate that it is worthwhile for them to resign because the job is larger. But if they resign and they could well become Permanent Secretaries to become just a Backbencher, I think the contribution is much smaller. So the civil servants who can make good Members of Parliament but not office holders are not available to us. The pool of people from which we can select Members of Parliament is therefore much smaller than the total adult population of Singapore. The private sector today is also much larger than the private sector in 1977 and the private sector pays much better. So there is an additional competition for political talent. Let me quote you some figures just to show how difficult it will be for us to recruit talent into the political leadership. The Committee which BG Lee heads, the Committee on Scholarships and Civil Service Careers, has compiled a table which I would not be circulating because the Committee wants to refine the data and release it at the appropriate occasion. The Prime Minister is paid $30,500, the Ministers, $21,300 per month. The banker who is paid the highest in 1987 received $196,000 per month. That is the top banker. If you average it out, for the top bankers in Singapore, the sum which the top banker in each bank received in 1987 was also a staggering figure, $141,000. You compare the Chief Executive of a bank with the Chief executive of a Ministry or the Chief Executive of Singapore, what incentives do we have, for a young man to leave a lucrative career to join us? Multi-national manufacturing companies, the highest paid employee earned $81,600 per month. On average, the CEOs received $63,800. For the lawyers, and this is relevant because it would underline our difficulty of getting people for the Bench, the highest paid lawyer in 1987 received $157,000 per month. On average, the top lawyer, ie, the senior lawyer in each of the bigger legal firms, earned $102,000 a month. If you think the top lawyers' earnings are somewhat distorted, let us look at the third senior most partner in law firms. On average, the third senior most partner in a legal firm earned $69,500 per month. Compare that with the earnings of the Chief Justice of $24,300 per month and Judges, $17,600 per month. The problem will become more acute for us because now we have able students doing law. The young lawyers amongst them will not have the incentive to join the civil service. And when we spot them, how do we get them to give up their career to become a Member of Parliament and take up office. In fact, for the last elections, I invited a senior executive of a multi-national firm to join us. He has got the potential to be a Minister. He was not quite ready. He said that he might be ready from the family viewpoint in the next term. But how do we compensate him for giving up what he is earning now? Even if you make him a Minister, I think he will not be receiving more than 50% of what he is earning or what he will earn as a senior executive in a multi-national company. Mr Mah Bow Tan, he was the Chief Executive Officer of SNPL. I never asked him how much he earned when I invited him to take up an office position. Only after he had accepted, did I check. As a Minister of State, he would receive only about 70% of what he was earning. I think that is a credit to Mah Bow Tan. I dared not ask him earlier in case I felt sorry for him. I dared not ask him how much he earned. But can you get more people like Mah Bow Tan? We have succeeded this time in getting two or three of them to give up high earnings, but can we continue to succeed? The problem is not peculiar to Singapore. Britain faces the same problem. But there is a difference between Britain and us because Britain can afford to make mistakes. They have got room for error. In our case Singapore rests on a very narrow base. If you make a mistake, the whole ship topples, and that is that. So we have got to make sure we have got the right people in Cabinet, in Parliament, to look ahead, analyse problems, reduce them into simple components and apply the right remedy to each problem. Let me quote you a passage from Sir John Hoskyns who gave a speech in 1983 on "Conservatism is not enough." Sir John was a former head of Mrs Thatcher's Downing Street Policy Unit: 'An MP is not paid much more than half his equivalent in other western countries. If he becomes a Cabinet Minister, one of 23 people, with a top responsibility for managing the affairs of a nation, he may receive as much as a middle-ranked executive, 10 or 15 years his junior, in a large company. He has no job security. The result of all this is predictable. For the purposes of Government, a country of 55 million people is forced to depend on the talent pool which could not sustain a single multi-national company.' If Singapore's Cabinet is not the equal of the Board of a Bank in Singapore, I think Singapore will be in trouble. To succeed, we just got to have an exceptional Cabinet. There is no other alternative. And despite what Mr Chiam said about an alternative party taking over from Singapore should Singapore stumble, I can tell you there is just no alternative. I have been involved in scouring the whole of Singapore for talent for the PAP since 1977. I know most outstanding Singaporeans above the age of 35, either personally or by name. I made it a point to track them, to know who they are. Each time the register on lawyers or accountants or doctors is available, I make it a point to go through and check with people who may know of some outstanding names whom we may have missed out. I also make it a point to know who holds what position in which association. So if there are Singaporeans who have a sense of commitment, with extra energy to work for others, I will know who they are. I look for them in the Society of Accountants, the Law Society, the Medical Association, the Medical Council, the University and many other places. I have a register. I keep tab. Can there be an alternative party to the PAP when even for the PAP we find it so difficult to get people who can serve? We are not just talking about competence. Competent Singaporeans there are many. But for those who are competent we have got to find out who will stand and fight for their convictions and who will run in a moment of crisis. We have got to test them for their dedication, for their sincerity. I find it more and more difficult to spot them. Maybe they are available below the age of 35. In fact, that is the task which BG Lee has got to undertake, reach out to those below 35 and hope that we can get them, convince them, that they should take part in the political process. Up to now we are not doing too badly. George Yeo, he was not very keen to join us this time. But I think I am quite a persuasive person. I have persuaded not only George Yeo but also Richard Hu who was very reluctant to become the Finance Minister. Those who are here will know that I have been quite successful in persuading them. It is my job to persuade those whom I think can serve to serve. Let me tell you how I persuaded George Yeo. His reason for not coming in this term what he told me was that he was about to start a family. We went into all kinds of arguments, about the need to participate, security for the family and so on. His answer was still no. I never knew that he had a problem with his bond. Because to join us he had to pay up a large amount as liquidated damages for breaking his bond. I did not know that and George Yeo never raised it with me. But I think I persuaded him in this way. I told him, "George, do you have any interest in politics?" He said, "Yes." "Would you be considering a political career sooner or later?" He said, "Yes, but not now." I said, "If you are interested, you should come in now because the Prime Minister will be around in Cabinet for a while, to share with you his political experience, his wealth of knowledge, which I cannot share with you. If you come in later on and the Prime Minister is not in Cabinet, you would lose something." Well, I got George Yeo, and I think he is quite an acquisition for us and for the country. You heard him yesterday. Even Mr Chiam complimented him on his speech. He has two degrees, a Double First in Cambridge in Engineering. He went to Harvard, did his Masters in Business Administration, was awarded high distinction. But I did not get to know George Yeo only after he has got his high distinction in Business Administration from Harvard. We spotted him way back in 1980 or thereabouts because of an article he wrote for the Pointer, which is an SAF magazine, talking about the security of small states. He showed a deep understanding of the fundamental problems that Singapore faces, and from then on we began to track him. The Prime Minister was tracking him too; so was I. If there are people who can form an alternative group to take over from PAP should we stumble, please let me know, Mr Chiam. There is no other group. George Yeo, we spotted him when he was in his early 20's and we watch him mature, be sure of his strength of character before we invited him to join the PAP. We have to do this because there is just little or no margin for error. I think Tan Cheng Bock has misunderstood the phrase. He wants this to be banished so that Singaporeans can speak up. No, we are not talking about Singaporeans speaking up and making mistakes. We are talking about making decisions as a group, that you need the best people who can calculate, offer solutions, alternative ideas, and finally reach the right conclusion for Singapore. If you reach the wrong conclusion for Singapore, well, I think that's that. It has nothing to do with fear of speaking up. Get Singaporeans to speak up. They will not get into trouble with us as long as they are not up to mischief. If they are, I think they will feel the firm smack of Government. But if they are not, do not worry. Get them to speak up. Consider this problem about taking decisions. We have promised Singaporeans better housing. Assume that we are under tremendous pressure to build better housing and Singaporeans want land in the catchment area to be released. Assume that because we have not consulted Singaporeans enough, we have implemented some difficult and painful tax measures and we may lose a few seats, or more than a few seats, in a general election; and you have to decide whether to yield to this popular pressure for more land for better housing and thereby reduce the stock of your water in Singapore, or to tell them, "No. We need reservoirs in Singapore." How would you decide? The young Singaporeans can tell you that there is plenty of water which you can import from outside Singapore, that we do not need so many reservoirs in Singapore, that all we need to do is to make available the catchment area of one of the reservoirs and we can have good public housing or middle class housing. Pressure is put on you. How do you decide? What decision do you take? If you make an error in your decision, can Singapore continue as before? Or would not something catastrophic happen all of a sudden? If I may be a little frank. I think most MPs have forgotten, when I listen to their speeches, the fundamental problems that we face. We are not Switzerland surrounded by countries which want Switzerland to be neutral. We are not New Zealand tucked away in some desolate corner of the Pacific. What are your thoughts about our security problems? You know that the US bases may not be around because the Philippines Foreign Minister has said that they would want to convert the bases for civilian use. In other words, the US bases may be taken over by the Filipinos. The US may have to withdraw from the Philippines. What are your thoughts about the implications of this? What are your thoughts of Vietnam joining ASEAN? Today an adversary of Asean, tomorrow a partner of ASEAN, in fact, a partner in ASEAN. What are the implications for Singapore, for ASEAN, for Southeast Asia, for peace and stability, for growth, for survival? These questions were not sufficiently addressed. This overview, this concern, on basic matters was not dealt with by the MPs in depth. In a way, the MPs' speeches compliment the Government because they were dealing with the problems of success, not problems of failure. Foreign maid levy, great debate in this House, that is a problem of success. In the Philippines' House of Representatives, I do not think they discuss the question of the quantum of levy for foreign maids. They discuss minimum wage for the foreign maids working outside Philippines. Diesel tax on taxis that is another example of the problem of our success. Had we failed and we do not have that many cars on the road we will not be talking about diesel tax or measures to control car population. Child care centres, it is also a reflection of our success. Many speeches would have greater impact had they been held back for the Committee of Supply. On the National Ideology, there were good points of view brought out by the MPs. I included this National Ideology as a major subject in the President's Address because I believe we need one to survive as a people. The Chinese are not just Chinese. The Chinese are divided into clans and in the old days the clans looked after themselves, whether it is education, or hospitals. They looked after themselves. And likewise for the Malays. I believe we need something to hold the people together as we speed towards the 21st century. My first question is: what is there to hold us together? Material wealth, the promise of a middle class society for Singaporeans, will these hold us together as a people? Religion - can we have one religion like Buddhism in Thailand to hold the country together? Language a common language to hold Singaporeans together? So we decided that we should formulate an ethos a value system that will bind us together as Singaporeans. The next question, after we have decided to do that: on what basis do we build an identity? Not religion, not any culture, not a melting pot because if we adopt the melting pot approach the major ingredient must be Chinese or Chineseness which would be totally unacceptable to the minority races. Certainly not deculturalizing ourselves because if we do we lose our distinctiveness. Therefore, the basis must be some shared abstract values which all races can accept. Which shared values? The President named four. There has been no disagreement on these four shared values. A few people have suggested additions diligence, honesty, sincerity, trustworthiness and so on but I am not keen because if we have more and more values put into these core values, we dilute the core values. The focus becomes blurred, thereby making the core values less fundamental. Agreeing on these basic points represents significant progress. How do we progress this? As a next step, we will put up a Green Paper to this House for further debate. We can then form a Parliamentary committee to debate the Green Paper, to collect views from members of the public because there are people outside who have contributions to make and we can include Mr Chiam See Tong on the Parliamentary committee. The outcome should be a document crystallizing the consensus. It should include a formal statement perhaps entitled "Shared Values" instead of "National Ideology" which should enshrine the values we want to preserve. It should also suggest ways these values can be strengthened and taught to Singaporeans, especially the young. It can be the basis for evolving our Singaporean identity, the next step in doing so. Dr Lee Siew-Choh said this was a thought-controlled exercise. If I may borrow his vocabulary that is a lot of poppycock, is it not? We send our best students abroad. You have seen the figures given by Dr Tan Cheng Bock over 10,000 students go abroad to study. How do you control the minds of these 10,000 students when they come back? We telecast parliamentary proceedings. We allowed Mr Jeyaretnam, we allow Mr Chiam See Tong and we allow you now to let all Singaporeans share your thoughts. How many countries in the world telecast parliamentary proceedings? We decided to do this way back in 1985. And who took the decision? I can tell you I was the one who had to make the decision and you know that I am not very good as a TV performer. Despite that, I decided that we should telecast parliamentary proceedings and our Backbenchers thought that I have made a mistake because it has worked to the advantage of the Opposition. Is there any attempt to control the thoughts of Singaporeans?