Singapore must strengthen social compact, improve safety nets: PM Lee

THE government will think carefully about how to improve the country's social safety nets beyond the Covid-19 crisis, as having sustainable social support will give people the confidence to cope in an uncertain environment and make changes to their lives.

Prime Minister Lee Hsien Loong made these points about strengthening Singapore's social compact in a national address on Sunday, stressing the need for Singaporeans to have the incentive to be self-reliant and to progress through their own efforts.

"We have difficult decisions to make on priorities, resources and budgets, but the values guiding us remain the same. Every Singaporean will have equal opportunities," he said.

"Whatever your starting point in life, you will have access to good education, healthcare and housing. If you fall down, we will help you to get up, stronger. You can be sure you will be taken care of. In Singapore, no one will be left to walk his journey alone."

Giving his latest assessment of the Covid-19 situation, Mr Lee said Singapore has made "good progress" as the number of new cases in the community has come down and the situation in the migrant worker dormitories has stabilised.

Mr Lee said Singapore's healthcare system is "coping well" due to the outstanding work of the healthcare professionals and others serving on the frontline. He also noted that the Covid-19 fatality rate among both Singaporeans and migrant workers - there have been 25 deaths so far - is one of the lowest in the world.

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

Sign Up

But Mr Lee explained that Covid-19 is not just a public health issue, but it's also a serious economic, social and political problem. He described the pandemic as "the most dangerous crisis" that humanity has faced in a very long time.

Singapore's economy has already taken a "severe hit", with the government putting together four major Budgets to protect workers, household and businesses.

"Unlike other countries, we can draw on our reserves, and do not have to pay for our support measures by borrowing," he said. "But even for us, this level of spending is hard to sustain. More importantly, these measures cannot shield us from the tectonic shifts taking place in the global economy."

Singapore's economic slowdown will happen faster and go further, and Mr Lee warned that there will not be a return to the days of an open and connected global economy anytime soon.

Industries that depend on travel will take a long time to get going again, and these may never recover fully, he said. And as countries look to become less reliant on others, especially for essential goods and services, this will all have "strategic implications" for the global economy.

Mr Lee talked about the importance of preparing for a very different future, as companies of all sizes will be hit hard and some industries experiencing permanent change.

"Many will have to reinvent themselves to survive. Workers too will feel the pain. Retrenchments and unemployment will go up. Some jobs will disappear, and will not come back. Workers will have to learn new skills to stay employed. The next few years will be a disruptive and difficult time for all of us," he said.

But even as he painted such a grim outlook for the nation, Mr Lee felt that Singaporeans can still secure a bright future for themselves and there was much reason to be optimistic.

Singapore has many economic strengths and a strong and trusted international reputation, he said. And even if some investments get diverted elsewhere or dry up, he was confident that new channels would open up. There is a stable political system in place that allows businesses to carry on even during a crisis, he said.

"The way Singapore has responded to Covid-19 - openly and transparently, neither avoiding reality, nor acting arbitrarily at the first sign of trouble - has only strengthened this advantage," he said.

Singapore has been working hard over the years to upgrade workers, digitalise the public and private sectors, and build innovation and R&D capabilities, he said. And in the meantime, Singapore is systematically rebooting the economy by rebuilding transport and trade links, and making supply chains more resilient than before.

Mr Lee said Singapore continues to keep its doors open and agencies are working hard to retain and attract talent and investments. The jobs issue remains the government's biggest priority for now, said Mr Lee, and he said workers will get all the help available to keep their jobs or find new ones.

But for all the government's plans to bear fruit, Mr Lee said there must be a final ingredient - the unity and resilience of the people. He said the choices that are made today will "define who we are as a people, and what values and ideals we pass on to future generations".

Mr Lee said Singapore can continue to be exceptional, and remain a fair and just society where people can chase their dreams. He said the Cabinet, with the support of the entire public service, will do their best on this front.

"We need every one of you to work with us. Together, let us take Singapore safely through this crisis, and make the Singapore spirit flourish in the world," he said.