SINGAPORE: Singapore Prime Minister Lee Hsien Loong, in his National Day Rally Speech on Sunday, said the new policies on healthcare, education and housing mark a "significant shift" in the government's approach towards nation building.

Delivering his most important speech of the year, Mr Lee said it is part of "new way forward"  as the country grapples with new challenges not just externally, but also domestically.

He said the changes are needed for Singapore to thrive in a new global environment.

Externally, the world is in a flux, with technology changing lives and competition from China and India heating up.

But increasingly, Singapore is also facing complicated internal challenges, such as the widening income gap and ageing population, compounded by day-to-day problems like the cost of living.

Mr Lee said: "Singaporeans sense, correctly, that the country is at a turning point. I understand your concerns. I promise you -- you will not be facing these challenges alone."

Hence, the three important shifts:

1) The government will do more to give every citizen a fair share in the nation's success -- as seen in the housing policies, where the government has increased the quantum of grants and covered more households.

2) It will strengthen social safety nets -- as seen in the new healthcare policies, with universal coverage under MediShield.

3) The government will also keep the path upwards open to all, so that even the less advantaged will have a good starting point. This is seen in the changes to the education sector.

Mr Lee said the government will apply these shifts progressively, across all social policies.

The focus on social policies is something leaders here have been working on. The recently concluded 'Our Singapore Conversation' process also gave the government a better sense of what Singaporeans aspired to and helped it to tweak the policies.

Mr Lee said: "We are not taking these steps because our system is bad. On the contrary, we are starting from a good position -- whether it's housing, whether it's healthcare, whether it's education.

"Whatever our qualms, whatever our grumbles, we may gripe about it sometimes. It's not perfect, but by international standards, they are all excellent."

While the government will do more, Mr Lee stressed that the community too, must do more to support individuals.

He said: "Community can and must take more initiative -- organising and mobilising ourselves, solving problems, getting things done.

"We have to be a 'democracy of deeds, not a democracy of words', as Mr S Rajaratnam, who was one of our founding fathers, said many years ago."

He added: "Our ultimate destination and core purpose have not changed. We want to ensure that every Singaporean shares in the nation's progress.

"We want to support the less fortunate and vulnerable. We want to create opportunities for Singaporeans to do your best and ultimately to build a stronger Singapore."

However, Mr Lee cautioned that the changes are not without risks. He gave examples of countries which have tried to implement similar policies with the best intentions, but ended up with unwanted outcomes.

He pointed to Finland, for example, where despite comprehensive protection for workers and a good education system, youth unemployment is still at a high of 20 per cent.

And in the US, where healthcare spending is the highest in the world, the outcomes there are worse than many developed countries, including Singapore.

Mr Lee said: "Therefore, we have to tread carefully, and beware of the pitfalls. We will do more for the low-income, but cannot undermine self-reliance.

"We will increase healthcare spending, but cannot encourage over-consumption and unnecessary treatments. We will make the education system broader and more open, but we cannot compromise academic standards and rigour."

Mr Lee also warned against saddling future generations with debt so as to pay for present consumption. So Singaporeans must be prepared to pay for this, either by raising taxes or cutting back on other spending.

Mr Lee said to achieve these aspirations, Singapore must take into account the external environment.

He cited competition in the aviation industry and highlighted how other airports are growing -- so Singapore must also plan ahead and continually build up Changi Airport.

PM Lee said: "Outside T1 (Terminal 1), we will build something special. There's a carpark there, open-air carpark, it's there since the beginning. It shouldn't still be there -- we will replace it with what we have code-named Project Jewel...

"T1 will be connected with it, so will the others. But it will have shops, restaurants and a beautiful indoor garden. So, we have Gardens by the Bay, this one is Gardens by the Airport."

The prime minister also revealed that Changi Airport's Terminal 5, which will eventually double the airport's current capacity, will be ready by the mid-2020s.

Mr Lee said: "This is how we can maintain our position as an international hub and create more opportunities for Singaporeans."

In addition, Paya Lebar Airbase will be moved to Changi. Mr Lee explained that relocating the airbase removes height restrictions and will free up large areas for new developments in eastern Singapore.

He stressed these are not merely plans, but acts of faith in Singapore -- like investing in future generations, holding up against competitors, and staying together as one united people. 

Source:  ChannelNews Asia 10th August 2013