Published May 2, 2009

3 potential stress lines in Singapore

	Email this article
	Print article
	Feedback

THERE are three potential splits in Singapore society that could test the country's resilience in these trying economic times, Prime Minister Lee Hsien Loong said yesterday.

MR LEE 'The critical question is how we handle the stresses and whether we unite cohesively when the economic pain deepens. Can we do it?'

The three potential divides are: between Singaporeans and non-Singaporeans; between the more successful and less successful; and between race and religion.

The global economic crisis has put all countries under stress, but Singapore has stood out because of its rational, effective and unified response, Mr Lee said.

'The critical question is how we handle the stresses and whether we unite cohesively when the economic pain deepens. Can we do it?'

Speaking at the NTUC May Day Rally, he said that not only Singaporeans want to know the answer. Investors are also keen to find out. For instance, an American investor recently asked him where the stress lines are in Singapore society.

On the potential split between Singaporeans and non-Singaporeans, Mr Lee said: 'In hard times, Singaporeans see non-Singaporeans as taking away scarce job opportunities. But this is a mistaken view.'

Multinational corporations that pump investments into Singapore need skills and workers from all over the world, he said.

Non-Singaporeans enlarge the pie, and so create more jobs for Singaporeans. 'Without non-Singaporeans working alongside Singaporeans, the jobs may not be there in the first place.'

The current downturn will put further strain on Singapore society if the less well-off feel even more left behind, Mr Lee said.

Therefore, the burden of the downturn must be shared fairly - and the more successful must take the lead in belt-tightening. Companies on an austerity drive must start at the top - bosses should take a pay cut first, and a deeper cut. Government ministers and senior officials have had their pay slashed 20 per cent automatically. 'This year, their bonus will be zero,' Mr Lee said.

Race and religion are permanent fault-lines in multi-racial Singapore, but the recession is making the divide more glaring because Malays and Indians, with larger shares of lower-skilled workers, are hit harder, he said.

Special effort must be made to train them so they will be ready for jobs that are available. And employers must hire and retain workers equally, based strictly on merit and performance.

'In a recession, it is most important that employers treat all races fairly,' Mr Lee said.