Mr Charles Chong,

Dr Michael Lim,

Dr Ahmad Magad,

Ms Penny Low,

Grassroots Leaders,

Residents of Pasir Ris,

Singapore faced several major challenges this past year. The Bali bombing, the war in Iraq and SARS.

Our health care workers have shown great courage in the battle against SARS. I am glad that we are able to honour them by inviting some of them to join us at our dinner tonight.

We can also be proud that Singaporeans all played their part to help bring the outbreak under control.

Parents, teachers and school children helped to keep our schools safe. Hawkers and market stall-holders improved their hygiene standards.

Grassroots leaders in Pasir Ris helped families affected by SARS, and distributed thermometers to every household.

We succeeded in this battle because Singaporeans were united in their efforts, and the trust between the people and the government built up over the years is strong.

Even though the threat of SARS is now reduced, we do not know whether it will recur during the northern winter. But we have the confidence that we can deal with it even if it does.

The way that Singaporeans have worked together to fight SARS gives us confidence that we can overcome any challenges that we may face.

Our main challenge in the next year is to restructure our economy. The world is changing very rapidly. China and India, with a combined population of more than 2 billion people offer very serious competition to every country in the world.

Singapore is strategically located between these two countries. We have good links with both of them. We must be nimble enough to ride on their growth and sieze the huge opportunities that will arise.

We also have Free Trade Agreements with key countries such as the US, Japan and Australia. This gives companies and businessmen here an advantage.

People from around the world have watched the way that we dealt firmly with terrorism and with SARS. They know that we are a determined, resilient and resourceful people, able to face challenges and overcome them. This gives them extra confidence to choose to do business in Singapore.

While this past year has been difficult, I have confidence that with determination and unity we will emerge from this storm stronger and more ready to sieze the opportunities the world has to offer.

As the world economy recovers, we must restructure and make ourselves even more competitive to attract more investments and business. This will help our economy to recover quickly, grow and create new jobs.

On behalf of my colleagues, I thank you for your strong support. We will continue to work hard with you in the coming year. I wish you and your families a Happy National Day.

******