The last six years have been difficult for all of us. We suffered one blow after another. First, we were hit by the Asian financial crisis. Then came September 11. Later, we discovered a terrorist plot to blow up several targets in Singapore. After the recession in 2001, we had hoped to bounce back last year. But our recovery has been delayed, partly as a result of international terrorist threats, and now, by SARS.

A lesser people would have been brought to their knees by these powerful blows. However, Singaporeans proved to be tough and resilient. As the saying goes, "Sturdy grass can withstand high winds". We stood tall and unbroken.

SARS was especially frightening. For once, we all felt the same fear at the same time. We feared for our health and our loved ones. We feared for our livelihood.

Foreigners too, feared the disease, and avoided Singapore. Overnight, SIA saw empty flights. Changi Airport was never so quiet. Our hotels, shops and restaurants were deserted.

SARS was certainly a misfortune. But SARS might also have been a blessing in disguise. SARS brought out the best in all Singaporeans. Faced with a common enemy, we closed ranks. Every Singaporean played a part in fighting SARS, from students and senior citizens to market stall-holders, hawkers, taxi drivers, Chinese sinsehs and grassroots leaders.

We fought the highly dangerous disease in a transparent and decisive way. The Government and people worked as one.

Winter will give way to spring. Our situation should improve when the world economy improves.

To adapt to the global economy, it is important to press on with the restructuring of our economy, especially in the area of business costs. When business costs come down, jobs will be saved, and more created.

The Government has already reduced taxes and fees. Our land prices have come down. Our wages must also be adjusted because they form a big component of business costs. If the wage system is too rigid, or the CPF contribution rate is not in line with economic conditions, we will not be light and nimble enough to clear the next hurdle. But if we make painful adjustments now, we can stay in the race.

Tough times will not last. Tough people will. Our Chinese community is tough. Our founding fathers were toughened by many ups and downs. Now, through several crises since 1997, our younger generation too, has been toughened.

Most importantly, in fighting SARS, our people have forged a strong bond with each other and with the Government. This strong bond will help us to prevail over whatever other shocks there are ahead.

I am, therefore, confident of our future.

You have always supported me in overcoming our challenges. I need your further support as I prepare a successor team to lead Singapore.

Thank you.

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