Speech by DPM Lee Hsien Loong, at the NTUC May Day Rally 2001, 1 May 2001, 7.15pm

Singapore Government Press Release
Media Division, Ministry of Information and The Arts,
MITA Building, 140 Hill Street, 2^nd Storey, Singapore 179369
Tel: 837-9666

SPEECH BY DPM LEE HSIEN LOONG, AT THE NTUC MAY DAY RALLY 2001, ON 1 MAY 2001 AT THE NATIONAL STADIUM AT 7.15 P.M.

Introduction

I am happy to join you today for the NTUC May Day Rally 2001.

This year we are celebrating not only May Day, but also NTUC�s 40^th anniversary. In these 40 years, Singapore has totally changed. In 1961, Singapore was poor, opportunities were few, unemployment was high. The trade unions were controlled by the Communists. They had split with the PAP, and fomented strikes and labour unrest to destabilise Singapore.

The NTUC was formed to challenge the Communist unions, and to build a constructive and responsible labour movement in Singapore. The NTUC succeeded, with the full support of the PAP Government. Today, Singaporeans enjoy one of the highest standards of living in Asia. We have full employment. Life has improved for all. Our unions work harmoniously together with employers and the Government, to further workers� interests. The NTUC has become synonymous with the labour movement, not by law, but because it has won the confidence and support of workers.

In the 60�s, NTUC May Day Rallies were often held at the old Jalan Besar Stadium. Today, we gather under the bright lights of the National Stadium. 60,000 workers and their family members are here, not just to listen to speeches, but also to enjoy a pop concert by A Mei and MediaWorks artistes.

The NTUC�s close cooperation with employers and the government has withstood difficult times. Each time it was tested and worked, we strengthened trust and mutual confidence, and became better prepared for the next challenge.

In the recent Asian crisis, one Asian country after another ran into trouble. In Singapore, union leaders could see what was coming, and worked hard to explain the situation to workers. The workers understood, and trusted their leaders. So they supported the cost reduction package, including the CPF cut and lower bonuses. We rallied together to face the crisis.

It worked. The economy turned round quickly. Last year we enjoyed 10% growth. Most workers who had earlier lost their jobs found new jobs. Many companies did well, and so did their workers. By the end of last year, we managed to restore 6 out of the 10% points of the CPF cut.

Unfortunately, we have now run into a new problem. The US economy is slowing down. In particular, the electronics industry is sharply down, in the US and around the world. Major companies like Hewlett-Packard, Motorola, Compaq, and Philips are retrenching tens of thousands of workers worldwide.

Singapore cannot escape this. Our economy has already slowed down. We are bound to see more retrenchments than last year. If this year we can make half of last year�s growth, we will have done well.

We must therefore prepare ourselves for a tough year. But there is no need to panic. The slowdown is serious, but it is not another Asian crisis. This time the problem is the US economy, which is slowing down sharply. But most experts think the US economy should pick up again by the end of this year. If they are right, Singapore should recover with it.

What should we do? First, we should be careful not to make things harder for employers. Better to accept lower wage increases and smaller bonuses, than to risk more retrenchments and job losses.

Second, we must press on to train and retrain our workers, to make sure that every worker has the knowledge and skills to find a new job should he lose his old job. We must help our industries to upgrade and modernise, especially the retail sector.

Third, we need to keep a close watch on the economy. Just in case things turn out worse than we expect, and we have to do more, we will be ready.

Beyond the immediate economic slowdown, we must also worry about longer term issues. One key challenge is competition from countries in the region, where people are hungry for development and growth.

China is a good example. China is grappling with difficult political and economic changes now, but when they sort out their problems, they will be formidable.

Many of you have visited China, or know friends who have. You have seen the Chinese people � hardworking, bright, eager to learn, anxious to get ahead. They have known poverty, and desperately want to improve their lives.

The Hong Kongers are also hardworking people. But even they are feeling the pressure from the mainland Chinese. One Hong Kong newspaper recently reported that

"The biggest difference between mainland young people and those in Hong Kong is that the mainlanders are hungry...not hungry physically, but hungry for learning, knowledge and to improve themselves."[Vincent Gauthier, senior human-resource consultant with Hewitt Associates, quoted in "Ambitious mainlanders leave local peers in dust" (South China Morning Post, 5 April 2001).]

The writer described how in bookshops in Chinese cities, young readers, too poor to pay 10 yuan (S$2) for a book, sit on the floor concentrating hard, poring over the latest volumes. Whereas in Hong Kong, "cartoon books, computer games and fancy shopping malls have displaced scholarship as the main priorities among young people".

What is the key difference between China and Hong Kong? It is the hunger, the drive, the determination of the people to improve themselves and get ahead. The mainland Chinese are hungry. The Hong Kong people are talented and enterprising, but much more affluent and less hungry.

Singapore is lucky to be more affluent than China. Are we hungry enough to keep forging ahead?

I showed the article to our union leaders. They have travelled to many countries, including China. They confirmed what the article reported. They said it is not just the PRC Chinese who are like that. So are the Vietnamese. Recently an NTUC delegation visited Vietnam. Comrade Heng Chee How reported:

"When I visited Vietnam, I saw the same sense of �hunger�. A street where a night school was situated was crowded with people and bicycles around 9 pm, and that was because one shift of students was leaving the school and the next shift [was] starting."

Another comrade commented:

"I see no "hunger" for learning here [in Singapore], as I too saw in Vietnam where the little girl who sold me cards and books in the market attended night school after a long and hard day's work � Many things have come easily, so there is no "hunger". We have it all on a silver platter."

Our generation has been lucky. But it was not just luck which made us succeed. It was hard work and grit, the determination to press on when things were tough, that got us here. We cannot afford to lose this drive. Younger Singaporeans must learn to work as hard as the previous generation, even though they have not lived through such tough times.

Much has changed in the last 40 years. We are more prosperous and secure, we are better educated and well prepared for the IT world, our nation building has yielded results. But some things have not changed. We still live in Southeast Asia. Our neighbourhood can still be volatile and unpredictable. Nobody owes us a place in the sun. We need to make a living for ourselves, protect our homes and families, and build a better future for our children.

If we slacken, we will lose all that we have achieved so far. But if we continue to work hard, we will surely succeed. Let us strengthen our unity as one nation, and look forward to the 21^st century with confidence and hope.

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