2        We now face renewed challenges as a nation. Terrorism is a real and continuing threat. The bomb incident at the Jakarta Marriot earlier this week is the latest reminder. Terrorism is now endemic in the region. Our economy has also been hit by the global economic slowdown, and more recently by SARS. Even after our economy recovers, we will face formidable competitors, especially in China and India.

3        We can overcome these challenges. We prevailed over more serious challenges when independence was first thrust upon us. We are in a much stronger position today than in 1965. We have a skilled population, a world-class infrastructure, and the confidence of international investors. Most importantly, we are a united people, determined to meet challenges together. We are no longer an unlikely country.

ONE UNITED PEOPLE

4        Our experience with SARS is a good example of how we can overcome great challenges if we work together. All Singaporeans played a part in fighting SARS - the doctors and nurses in our hospitals, defence engineers working on the thermal scanners, the cleaning staff in our buildings and food centres, and everyone in our schools. The staff in our schools and MOE HQ worked tirelessly throughout the crisis to safeguard the well-being of our pupils and give parents confidence in the system.

5        We have indeed gained confidence from how we prevailed over SARS in our schools and post-secondary institutions. We equipped over half a million school pupils with thermometers, and put in place a twice-daily temperature-taking regime. Education packages on how to combat the disease were developed and distributed at short notice, customised to the students at different levels. We ring-fenced our schools thoroughly by instituting detailed procedures for pupils who had travelled to SARS-affected countries or whose household members were served home quarantine orders. Behind the scenes, quick response plans for various scenarios were developed to keep us ahead of the curve.

6        It was a massive task and we rose to the challenge. The fact that a very large majority of parents sent their children back to schools as soon as we reopened them was a major vote of confidence in our system.

7        Singaporeans' unity in the fight against SARS has made us stronger and more resilient as a society. It will not only stay in our collective memory, but will help us as we take on future challenges.

SECURING ECONOMIC GROWTH - THE KEY PRIORITY

8        Our most important priority is to restore economic growth, and create jobs. We should be out of the current down-cycle in the economy by the end of the year. The US economy is picking up. Our manufacturing sector and exports are picking up. And unless we see a further outbreak of terrorist incidents in the coming months, our service industries should also continue to recover from the blow that they were dealt by SARS.

9        However, our bigger economic challenge is not the immediate recovery but to sustain good growth, year after year, beyond the recovery. The landscape has completely changed. New competitors have emerged, and whole industries are being reconfigured. Restructuring is not once off, but continuous.

10        We are not unprepared for this environment. Good growth is entirely within our reach, if we stay flexible and build on the real competitive strengths that we have. If we play to our strengths, we will see good jobs being created, more than the old jobs being lost. We will achieve 3-5% growth for many years - faster than in any other developed country.

11        Investors favour Singapore because they value our workers' skills, our engineering expertise, our highly efficient infrastructure, and our tight protection of their intellectual property. We are reinforcing these strengths by cutting income taxes, and by tying up free trade agreements that give Singapore a special role as a hub for multinationals and provide more opportunities for our local entrepreneurs in overseas markets.

12        But our most important economic advantages come from our social strengths, more than our economic policies. First, we have a disciplined and well-organised society. This allows us not just to defeat a virus like SARS. It allows us to keep looking forward as a society, not backward. It allows us to make quick adjustments, collectively, before they are forced on us by the markets. It allows us to get out of difficulties by taking painful steps early, in order to see better times in future. It is quite unlike the way other countries respond to similar challanges. We do not have to go through years of slow growth or no growth, like Japan for example, before bringing ourselves to recognise that we have to change.

13        Our second major strength is that we have an education system that is always geared to the future. This is a real economic asset. It allows Singapore to stay ahead of the curve, keep the flow of fresh skills and expertise. It allows us to keep higher incomes for Singaporeans over the long term, even as we face competition from China, India and other lower income countries. Almost every major investor tells us that our education system is a key competitive advantage.

EDUCATION FOR THE FUTURE

14        MOE's task, and that of all our educationists, is to get the next generation ready for the future. What we do now in our schools, ITEs and tertiary institutions will in many ways decide Singapore's future. We have to prepare our young for a future of frequent, and often unsettling, change. It will be a future with heightened risks, but also great rewards for those who are willing to seize opportunities and turn risk to advantage.

15        Our young will be well prepared for this future if they acquire a strong foundation of knowledge in school, learn how to communicate well and develop the ability to interact with a wide range of people. But they must also develop the knack of being flexible, of thinking on their feet, and being willing to experiment with new ways of doing things. These will be key skills for the future. They must never be afraid to ask questions and test out new solutions. They should also take their CCA and other school activities seriously. These activities will help them develop the strength of character and robustness that will help them in life. They will help them see opportunities, not just obstacles, and make the most of them.

TOGETHER, WE WILL GO HIGHER

16        What will make or break us as a nation will ultimately be our ability as Singaporeans to preserve a spirit of solidarity between citizens of different social backgrounds. We must have a stake in each other's future, and a common interest in Singapore's success.

17        How can we reach new heights as a country? We will do so if those who have climbed the highest extend a hand to their fellow citizens, and help them climb higher. Those among our young who have gone the furthest must make the special effort to engage and get to know the rest, and encourage them along. It will make them stronger, fuller individuals, and will make us a more resilient society.

18        Just a few weeks ago, we commemorated Racial Harmony Day. It was once again a good opportunity for students from different races to work together, learn from each other and show, in interesting and colourful ways, our togetherness as a people. Our schools are the key place where we develop this sense of togetherness when young. They are where our young share experiences together, whether playing together, learning together, practising in teams and uniformed organisations together, or taking part in the same competitions.

19        We should continue to expand these common experiences, and find creative ways to do so. There are vivid examples of this in our schools. Like the Chinese opera staged by students from Bukit Panjang Government High School last week at the Victoria Theatre. 11 of the students, out of a cast of 30, were not Chinese. The opera was itself unique in that it was based on the Hindu epic, the Ramayana. The lead female role (that of Sita, wife of Rama) was played by Fa'izah Samsudin. She only knew 'yi dian dian' Mandarin, so she memorised all her lines and her friends explained to her the meaning of her script ¹.

20        We should take every opportunity to encourage students to mix and interact with each other, take a cue from each other, and make friendships. Create new spaces, and expand the mosaic of shared experience in schools. If we stay committed to this, our diversity of races and cultures will be a source of continuing strength and dynamism for Singapore, not a source of weakness. Most important, we would understand, instinctively, that our futures are bound together.

CONCLUSION

21        National Day is a time for recollection and celebration. It is also a time to look to the future. We have the opportunity and responsibility in Education to develop in our young the qualities that will help them sail with the winds and ensure that Singapore remains a vibrant, cohesive society for many years to come. Let us do this well.

22        I wish you all a happy and meaningful National Day.