THE ongoing Covid-19 pandemic has strained a number of fault lines in Singapore society, as well as brought up "difficult issues" that need to be dealt with, said Prime Minister Lee Hsien Loong.

In his annual National Day Message, taped at the Botanic Gardens and broadcast on Sunday evening, he cited three of these issues - the need to support lower-wage workers, how to address anxieties over foreign work-pass holders, and managing issues of race and religion carefully.

On the first point, Mr Lee said that "real progress" for lower-wage workers is an essential part of inclusive growth in the country.

"In Singapore, no matter where you start in life, we want to make sure you and your children will have every chance to improve yourselves and move ahead," he said.

He noted that lower-wage workers, like all Singaporeans and their families, have "good and affordable" healthcare, housing and education.

However, it is this lower-wage group that has felt the impact of Covid-19 most acutely, said Mr Lee.

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The government has given them more help in this crisis, given that they have found it harder to cope with reduced incomes and unexpected job losses, as they have less savings to serve as a buffer.

"In the longer term, we will see an increasingly skills-based economy. Our lower-wage workers will need more sustained support," he said.

He said that a tripartite workgroup has been developing proposals to improve their lives and prospects. These, he added, will build on Workfare and the Progressive Wage Model to boost their incomes and create new opportunities for upskilling and job progression.

Turning to the issue of foreigners, Mr Lee reiterated that work-pass holders help expand the economy and create more opportunities for Singaporean workers. When the local workforce is complemented with skills from around the world, more companies will invest in Singapore and this, in turn, creates more jobs for Singaporeans, said Mr Lee.

"This is a virtuous cycle. Singaporeans understand this: that we need to welcome the talent and expertise that our economy needs," he said.

But when the number of such work-pass holders is large, Mr Lee said he recognised the concerns of Singaporeans due to the competition for jobs, and that Covid-19 has worsened these anxieties.

While work-pass holders can reinforce a team in a company, they may also compete directly with their local colleagues, said Mr Lee, noting that locals may at times feel unfairly treated when they lose out on getting a job or a promotion.

Outside of work, Mr Lee said that there are occasional social frictions as some work-pass holders and their families have not fully adapted to our social norms, nor fully integrated into Singapore's society.

"I understand these anxieties and problems. The government is addressing them. We have to adjust our policies to manage the quality, numbers and concentrations of foreigners in Singapore," said Mr Lee, adding that succeeding on this front would mean Singapore is able to welcome foreign workers and new immigrants.

"Turning inwards is against our fundamental interests. It would damage Singapore's standing as a global and regional hub. It would cost us jobs and opportunities," he said.

"Most importantly, it goes against our values of openness, and of being accepting of others who are different from us. We uphold these values, because they have anchored us, and helped us progress over the years as a nation."

On the issue of race and religion, Mr Lee recalled how a number of racist incidents in Singapore in recent months gained wide publicity and were amplified by social media.

"Such incidents are worrying, but they are not the norm. Many more happy inter-racial interactions happen every day, but these seldom go viral," he said.

"The negative incidents do not mean that our approach is failing. However, they illustrate how issues of race and religion will always be highly emotive, and can easily divide us. Therefore, such issues will always need close attention."

Mr Lee said it is useful to air and acknowledge such sensitive issues, and to do this in a candid and respectful manner, given that it took several generations of sustained effort to bring Singapore's races and religions together.

He said this harmony was the fruit of mutual understanding and compromise by all parties, and that Singapore must not lightly give up this hard-won and delicate balance.

"As our society evolves, we have to continually adjust this balance to maintain our social harmony. It is the government's duty to manage these issues on behalf of all Singaporeans, regardless of race, language or religion. To do this, we will need your cooperation, support and trust," said Mr Lee.

He rounded off his message with the point that while new crises will test Singapore’s resolve and unity from time to time, Covid-19 has shown that the nation can face them with grit and determination.

“I am confident that Singapore can keep on building a more harmonious society, a more prosperous economy, and a more successful nation for generations to come,” said Mr Lee as he wished all Singaporeans a happy National Day.

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