We have been successful because we have not taken success for granted: Lee Hsien Loong

Excerpt:

Beyond these broad aspirations, what tomorrow’s Singapore will be like is for all Singaporeans to imagine, and create, together. A new generation is growing up, brimming with fresh ideas on how to change Singapore for the better. With imagination and hard work, we can turn vision into reality, and ensure that Singapore continues to be the best home for us all, and a shining red dot we will always be proud of.

A SUCCESSFUL, GROWING ECONOMY

But being near the front also means we must have a successful, growing economy. There is no other way we can achieve this. We cannot do it by spending what we have inherited from the older generation. We certainly cannot do it by pumping oil or gas from the ground. We can only do it if our economy is prospering and creating wealth that we can invest in our city and our people, to make life better for all of us.

Singapore cannot avoid slower growth in the next decade and beyond. [Slide showing Singapore’s declining growth rates]. This is natural because we are now more developed. We are also running up against land and labour constraints, especially as we reduce the inflow of foreign workers. Plus competition is fiercer, not only from hundreds of millions of hungry workers in the emerging economies, but also from new technologies that will transform industries in even the developed economies.

I know that some Singaporeans welcome the prospect of slower growth. Some go further, and want us to slow down even below our economy’s potential. They argue that we already have enough material success, and should give less weight to economic factors, and more to social considerations. And that we should spend more on ourselves, and put aside less for the future.

I respect their views. I agree fully that material goals are not everything in life. But we are not going for growth at all costs, nor have we done so. Growth is not an end in itself, but a means to improve our lives and achieve our goals. We must always maintain the balance between economic and non-economic objectives, and ensure that the fruits of growth are invested for social purposes which benefit the wider population.

Nevertheless, without growth, we have no chance of improving the collective wellbeing. Far more countries worry about growing too slowly, than growing too fast. For Singapore, slow growth will mean that new investments will be fewer, good jobs will be scarcer, and unemployment will be higher. Enterprising and talented Singaporeans will be lured away by the opportunities and the incomes they can earn in other leading cities. Low-income workers will be hardest hit, just as they were each time our economy slowed down in the last decade. Over time, our confidence will be dented. Thoughtful Americans have told me that a major challenge for the US after years of slow growth has been a profound loss of optimism. The same is true for Japan, and will be true of Singapore too if ever our economy stagnates.

Beyond the issue of resources is the deeper question of spirit. We have been successful precisely because we have not taken success for granted. Our sense of vulnerability, and consciousness of the competition we face, are important parts of the Singapore psyche. Changi Airport strives to be the best airport in the world; it does not aim to be number two. Singapore too must aim to be outstanding. If we are content to just be above average in the league of cities, we will fail. That is the greatest danger if we tell ourselves to slow down, enjoy life today and not worry about tomorrow.

I am confident that the Singapore economy can remain vibrant and dynamic, provided we work together and set ourselves to it. We have the ability to invest in our workforce, in every worker, and catch up with the developed countries. Tripartite cooperation is strong, as is our will to upgrade and adapt. We are open and confident, and embrace talent and enterprise from around the world even as we nurture Singaporeans to their fullest potential. Our reserves are a valuable buffer against external shocks, and give us the confidence to transform our economy. Not many other countries, or cities, in the world can claim the same.

*Speech by Prime Minister Lee Hsien Loong at Economic Society of Singapore Annual Dinner 2012.

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