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Inflation to hopefully come down further though 'much will depend on external environment', says PM Lee

Inflation to hopefully come down further though 'much will depend on external environment', says PM Lee
PM Lee Hsien Loong called on every Singaporean to come together to fulfil the nation’s aspirations, and secure a bright future for Singapore.
PHOTO: MCI file

SINGAPORE - In an era of rapid external and internal change, Singapore must work ever harder to keep its society together, and strengthen its sense of shared identity and nationhood, said Prime Minister Lee Hsien Loong in his annual New Year message.

The global environment will remain challenging for some time to come, and Singapore will also undergo a leadership transition, he added.

He urged Singaporeans to stand together and to support Deputy Prime Minister Lawrence Wong and his fourth-generation team to build a nation that is “vibrant and inclusive, fair and competitive, and resilient and united”.

“This is how we have come through successive crises and done well, and this is how we must surmount future challenges which are bound to come,” said PM Lee.

In his address marking the start of the year, he said 2023 had been challenging.

On the international front, underlying tensions remain between the United States and China and the war in Ukraine has no resolution in sight.

Most recently, Hamas’ savage attack on Israel, followed by Israel’s ferocious military response in Gaza, have killed and maimed thousands of civilians, and the continuing human suffering has aroused revulsion and anger around the world, said PM Lee.

He noted that people of all races in Singapore have expressed anguish and concern, with Muslim Singaporeans understandably feeling this most acutely.

“Much as we try to insulate ourselves from problems elsewhere, inevitably from time to time we in Singapore will feel for the troubles of others. It is a consequence of our shared humanity, he said.

PM Lee said he was glad Singaporeans have responded in a compassionate and practical manner by expressing their views while upholding national interests and social cohesion, and contributing generously to humanitarian aid, particularly in Gaza.

He also expressed gratitude to the religious and community leaders who stood beside the Government to counsel wisdom and supported Singapore’s social cohesion at this fraught moment.

“We have painstakingly built up our racial and religious harmony over decades as a fundamental basis of Singaporean society.We must continue to approach potentially divisive issues like the Israel-Hamas conflict with tolerance and respect towards one another’s views,” he added.

This was the way to honour the ideals and vision that Singapore’s first prime minister Lee Kuan Yew and his team of founding leaders stood for – a fair and just society where people have full opportunity to succeed, a thriving economy built on meritocracy and hard work, and an endearing home where every Singaporean belongs, he said.

This was the way to honour the ideals that Singapore’s first prime minister Lee Kuan Yew and his team of founding leaders stood for - a fair and just society where people have full opportunity to succeed, a thriving economy built on meritocracy and hard work, and an endearing home where every Singaporean belongs, he said.

The decisive win by President Tharman Shanmugaratnam in the 2023 presidential election was “one good sign that we are making progress towards becoming one nation, regardless of race, language or religion,” added PM Lee.

In another key moment of 2023, PM Lee highlighted how Singapore reverted to the lowest level of its disease outbreak response, Dorscon Green, after more than three years of living with Covid-19 restrictions.

While Singapore avoided a recession with 1.2 per cent growth in 2023, and inflation was gradually coming down, PM Lee acknowledge that households are still feeling the pressure of higher cost of living.

He said that he hoped the Government’s assistance schemes have helped to relieve the burden, adding that projection is for gross domestic product to grow by 1 to 3 per cent and inflation to hopefully come down further, though “much will depend on the external environment”.

PM Lee also said that households will continue to receive the Assurance Package to cushion the hike in goods and services tax to 9 per cent from January 1.

“This way, households who need help will get it, while we can keep our public finances sound and sustainable over the longer term,” he said.

Extra revenue from the tax will help the Government to pay for growing healthcare expenses as Singapore’s population ages, he added.

Casting his eye to the year ahead, he said the external environment will be less favourable to Singapore’s security and prosperity for some years to come.

Geopolitical uncertainties will continue weighing on the global economy, there are also tensions and risks over rival claims in the South China Sea and from the the cross-strait situation between China and Taiwan.

Climate change will also pose “major challenges” for every country - and Singapore is already feeling the effects, he added.

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Singapore will also be undergoing a leadership transition when he hands over the reins to DPM Wong, said PM Lee.

Though this is not the first time Singapore is having a leadership transition, the process is always “delicate” and the country will come under close scrutiny, noted PM Lee.

He said: “People near and far are watching to see how the new leaders bond with Singaporeans, and whether our small nation can remain successful and exceptional.”

Bringing up the Forward Singapore agenda on the way forward, unveiled by the 4G leaders, PM Lee said it was an “ambitious one”, especially as it has to be realised in an era of change.

The Forward Singapore roadmap covers issues like creating opportunities for all Singaporeans to chart their own path, more help and support for various groups, and collective responsibility from all stakeholders to uplift the most vulnerable.

Many larger societies have become divided and weakened because difficult issues were not tackled directly and effectively, rival interest groups jostled against one another, and leaders put their own interests above the nation’s, noted PM Lee.

“As a small red dot, Singapore cannot afford to make the same mistakes and suffer the same consequences,” he said.

Despite the challenges, PM Lee said that there is reason to be hopeful and confident.

Rapid technological progress, especially in artificial intelligence and robotics, holds great promise for businesses and people here, and the Government will work closely to help businesses transform and workers upskill.

At the same time, the Government will also continue to help lower-income families and vulnerable groups so they can live with purpose and dignity, build affordable and accessible public housing, and care for the ageing population, he pledged, noting that this forms part of the blueprint for a refreshed social compact.  

He urged Singaporeans to also “always care for others in our community, and help those in greater need than ourselves”.

Calling on every Singaporean to come together to fulfil the nation’s aspirations, and secure a bright future for Singapore, he said: “Let us face 2024 invigorated and confident, as one united people. The future may be uncertain, but our path is clear.”

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This article was first published in The Straits Times. Permission required for reproduction.

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