Singaporeans they were better off on home soil than if they were elsewhere in the region.

SINGAPORE, Feb 7 — Singaporeans have what it takes to weather the current storm, said Minister Mentor Lee Kuan Yew, as he made a resounding call for people to keep their chins up.

Speaking at a Chinese New Year dinner in his Tanjong Pagar ward last night, Lee sought first to ease the fears of Singaporeans, and then to rally the troops for what could be a long campaign.

It was a speech filled with messages of comfort, of confidence, but mostly, of hope.

“Singaporeans need not despair or be depressed. We will have to endure some hardship but nobody will be destitute, depending on soup kitchens or begging in the streets,” he said.

His words were largely directed at the younger generation, the ones who would be charged with taking the country forward. As daunting though current circumstances may appear, he said they could take heart from the experience of their predecessors.

He told them of the 1960s and 1970s, when there was only S$100 million (RM240 million) in reserves, the country faced separation from Malaysia and had to deal with “Konfrontasi” from Indonesia. In contrast, he said there is more than S$100 billion in the reserves now.

“Your parents' and grandparents' generations had hard lives in shanty huts with no running water or modern WC, not knowing what the future could bring. They simply concentrated on hard work and built the foundation for the Singapore of the 21st century,” he said.

“Your generation can take Singapore forward to become one of Asia's most vibrant and beautiful cities.”

He added: “The success of Singapore came from the hard work, resourcefulness and ingenuity of your forefathers and their leaders. You are the descendants of these lion-hearted pioneers.

“You have it in you to succeed. Joining you are hard-working and talented new emigrants from Asean, India and China. Together we can make the grade.”

Amid the hopeful sentiments, there were doses of realism too.

The downturn, he said, should serve as a wake-up call to those who believe that “Singapore and Singaporeans will automatically go up the escalator every year”.

He said everyone would have to do their bit to help the country weather the storm.

On the government's part, he said the leaders will “share the belt-tightening that other Singaporeans have to bear in this difficult period”.

“Ministers and senior civil servants are taking pay cuts of up to 20 per cent as the economy has slowed down substantially. Middle and lower-ranking public officer would also receive lower salaries but with smaller reductions,” he said.

The government will also do its best to help Singaporeans, but he stressed the focus will be on those who need it most.

He dismissed suggestions that middle-class Singaporeans, living in private housing, had been ignored

“The government has not overlooked them. They are getting income tax and property tax rebates, and GST credits. But it is right that the low-income groups should get more help as they are in greater need,” he said.

He also reminded Singaporeans they were better off on home soil than if they were elsewhere in the region.

“Whatever your job, you are better off in Singapore than if you are in a similar job in any other Asian country, including China and India. The only country where job for job, you can be better off, is in Japan,” he said.

On the Budget, Lee indicated the Resilience Package could be updated. While he hoped the worst of the crisis would have blown over by early next year he said much depends on how the US financial and economic policies fare.

Their outcome will affect the European Union, China and Japan because the United States is their major export market, he said.

“By the end of the year we will know where the US economy is heading. The Resilience Package may have to be updated.” — Straits Times