Picture Singapore as a small boat crossing a vast ocean. The vast ocean is the regional and global environment. Picture unpredictable weather and mountainous waves.

In our region, there are swirling winds and seismic activity. Several countries are in various degrees of difficulty. Many investors now avoid the region.

Moreover, larger boats, like China, are creating big economic waves. Cheap and good Chinese products are now flooding the world markets. In a matter of years, many of the goods that Singapore now produces, China will be able to make more cheaply and possibly of a better quality.

Globalisation has also allowed big, strong companies to swallow up or knock out weaker ones across national borders. Our banks and telecommunications companies are at risk unless they become bigger and stronger.

I know that many Singaporeans are more concerned about domestic issues than external events. But we cannot solve domestic issues without taking into account external developments.

As we are now heading into bad weather, we must find new strength to cross the ocean. We must be united. If our boat sinks, because we cannot agree among ourselves on how to cope with the bad weather, domestic issues will become irrelevant.

We have to attract global talent to add to our strength. I understand that some Singaporeans have reservations over this policy. But let me assure you that our own talent will always come first. We will help every Singaporean to blossom, and to put his talent to good use.

But the reality is that we do not have enough people with the right skills and experience for our expanding economy. To make matters worse, some of our brightest young people in overseas universities are being harvested by others as soon as they graduate.

We, therefore, have to make Singapore a powerful magnet so as to be able to retain our own talent as well as draw in foreign talent. The more talent we have, the stronger our economic capability. Our companies will prosper. We will create more jobs and wealth for all our people.

I am revisiting the issue of foreign talent because in an economic downturn, more people will feel that outside talent is taking away their jobs. This is a natural reaction. But you should also look at the issue from the perspective of our long-term interests.

A few days ago, Zaobao carried an article recalling that during the times of the Warring States in China, Prime Minister Li Si advised the King of Qin (Ying Zhen) to reverse a command to expel all the foreign talent that had gathered in Qin. Li Si said: "Mount Tai becomes so big because it does not reject any soil. Rivers and seas become so deep because they do not reject any small tributaries".

The King of Qin, realizing his country’s weakness, accepted Li Si’s advice. His wise use of foreign talent contributed to Qin’s strength.

I am aware that older Singaporeans have other worries. The cost of healthcare is one of them. Unfortunately, good healthcare costs money to provide. Some increase in healthcare charges is therefore unavoidable. But the Government will ensure that essential medical care is always within your reach.

We are now working out an insurance scheme to cover Singaporeans aged 40 and above against serious long-term disabilities. This scheme, called Eldershield, together with Medisave, Medishield, Medifund and the Eldercare Fund, will help you meet the costs of medical care and nursing home stay.

Singaporeans also worry about the widening income gap. This is a global phenomenon. The Government cannot forcibly close the income gap. If we try to pull down wages at the top and push up wages at the bottom against the dictates of the market, our talented people will leave us and our workers will cost too much. Our economy will then become uncompetitive and eventually collapse.

However, the Government will do more for lower-income Singaporeans through our asset enhancement and other programmes.

We will introduce a new scheme to give every Singaporean, "New Singapore" shares. When we have healthy budget surpluses, we will give out such shares to Singaporeans. The lower-income group will be given more. These shares will give you an annual dividend for a fixed period. When the economy does well, an extra bonus dividend will be added. You can also trade in your shares for cash.

Two years ago, I asked Chan Soo Sen to lead a group of Chinese-speaking MPs to visit Chinese community organisations to gather feedback and exchange ideas. They have met with more than 100 clan and other associations.

The Chinese community urged that we make a special effort to retain our culture and traditions. I agree. We must never become totally westernised. As it is, some English-educated parents find difficulty giving their children Chinese names. Hence, Chinese teachers, the Chinese mass media, the Chinese Chamber of Commerce and clan associations should take the lead in preserving our Chinese culture and traditions.

The Chinese language is an intrinsic part of our culture and traditions. We must try to build up a core of effectively bilingual Singaporeans with a high competence in Mandarin and a love of Chinese culture. This may be difficult to do, but we must try. These Singaporeans will help us keep up the standard of Chinese language in our society.

Over the last 36 years, Singapore has survived and grown stronger against great odds. We have done so by courageously facing up to problems. In the current economic slowdown, let us work together for a better tomorrow.

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