Ladies and Gentlemen,

Good Morning.

1. Singapore is a small country. And with our small size comes many limitations. These limitations were, and continue to be, very real.

2. But we have never let ourselves be daunted or constrained by these limitations. Instead, by staying nimble, adaptable and always looking for creative solutions, we have succeeded in turning these constraints into advantages . This is the story of modern Singapore. It is a story of how we, as a small country have worked to minimize the disadvantages of being small, while at the same time seeking to maximize the advantages of smallness. It is a story that provides inspiration and hope to all Singaporeans that we can and will continue to overcome challenges and find our place in the sun. I will start by asking you three questions: Why do we have water to drink? Why am I speaking to you in English? Why is Singapore still independent? These questions may seem strange to you, but the answers are fundamental to what we are, and define the spirit that drives Singapore forward.

Resourceless yet Resourceful

3. First: Why do we have water to drink? One of the most important resources is water. We need clean water for life, for work, for play. Water is essential for survival, and to sustain our city’s growth.

4. Singapore is just about the most densely populated country in the world. Water is a critical resource, but nature did not give us enough of it. Our own reservoirs alone are not enough to meet our water needs. Our reliance on imported water made us vulnerable and dependent on others for our survival. To reduce this vulnerability and to make ourselves as self-sufficient as possible required great ingenuity and the combined effort of Singaporeans.

5. To expand our own water supply sources, we protected existing reservoirs and catchment areas, and developed new ones. This was given top priority despite competing demands on our scarce land area. Today, about half of Singapore’s land area, including many HDB towns, is catchment area. The Marina Barrage across the Marina Channel has just been completed, creating Singapore’s largest freshwater reservoir right in the heart of the city. Soon, fully two-thirds of Singapore will be a water catchment area - and this in one of the most land-scarce, densely populated urban centres in the world!

6. A major breakthrough in harnessing our water resources came from our investment in research and development into environmental and water technologies. This important groundwork was key to the development of NEWater. Today, more than 15 percent of national needs is met by NEWater. This is sufficient to replace the water supplied by Malaysia to Singapore under the 1961 water agreement that expires in just 3 years, in 2011. Singapore companies have also demonstrated desalination based on advanced membrane technology, allowing us to purify seawater at an affordable cost. Along with imported water, these now constitute our Four National Taps, which will enable Singapore to meet its future water needs from a diversity of sources.

7. Our search for water sufficiency has allowed us to develop expertise in value-added water technologies and water management, turning Singapore into a hub for water technology. As water becomes an increasingly critical but scarce resource in many regions of the world, many countries have started to look to us for solutions to address their water needs. Just two months ago, 6,000 delegates from all over the world attended the first Singapore International Water Week. We have also developed a vibrant local water industry, and Singapore-based companies now export our water technologies all over the world, in a market worth hundreds of billions of dollars a year. We started out with water as a key constraint and vulnerability. But with perseverance and vision, we have turned this limitation into an important economic advantage. Instead of becoming increasingly reliant on imported water, we have now created a whole new and lucrative growth industry - exporting water technology and water treatment plants to other countries.

8. We have carried this same “can-do” spirit into other areas as well. Singapore does not produce a drop of oil, yet we rank 3rd globally as a refining and petrochemicals centre. Likewise for air travel. Singapore has no domestic market for air travel to leverage on, but we have become a global air travel hub with one of the most successful and iconic airlines in the world. We were not discouraged by our limitations, but converted them into key advantages for Singapore. We may be resourceless – i.e having no natural resources. But with resourcefullness what else we might be able to create is entirely up to your imagination and drive – in creative multi-media, in the biosciences, or even in the arts and sports.

Diverse yet United

9. Second: Why am I speaking to you in English? Another limitation we faced post-independence was the lack of a common working language. In the 1950s and 1960s, Singapore was a diverse collection of people, with different languages and cultures. Under British colonial rule, each ethnic community lived in its own separate area, spoke its own language, and even ran its own schools. You may not realise this, but we had primary schools whose medium of instruction was, for example, TeoChew. Post-independence, what should we do? Should we continue to live, work and learn separately, in different languages? This is the choice that some countries have made, where there is no common language and each ethnic group keeps its own language and schools. But if our desire was to come together, what common language should we use?

10. We could have done what most countries do, adopt the language of the race which formed the majority, which was Chinese. Indeed there were pressures for that. But that would have threatened to marginalise the minorities in Singapore, and heighten the suspicions of neighbouring countries. What if we had chosen Malay? That would probably have upset the other racial groups too. The lack of a language that Singaporeans could use to speak directly to each other - which could bridge the racial differences and unify Singaporeans - was a serious weakness. If not managed well, it could have become a serious fault line along which our fragile society could have fractured.

11. Instead, Singapore adopted English as our working language with each community also continuing to learn its own mother tongue. English was a language alien to most Singaporeans. But in the post-World War 2 world, with the ascendancy of the United States which inherited the English language from the British, English was the language of international commerce and science. English was also a neutral language that allows us to bridge the various communities. And precisely because English was alien to us, the use of English did not advantage any one major community over any of the others.

12. As it turns out, our use of English has given us a competitive advantage. In all of East Asia, Singapore is the country where English is most widely and well spoken. It has helped Singapore to become an international centre for industry, commerce and banking. And in the Internet age, in the age of globalisation, the ability to communicate in English continues to be a critical factor for success. English is also an advantage as Singapore positions itself as an education hub.

13. Our bilingual language policy, tough though it can be on our students, confers huge advantages to us. With the rise of other Asian economic powerhouses, such as China and India, Asian languages will become increasingly important, and your ability to speak both English and your mother tongue will put you in good stead to seize opportunities in the post-English-only world of commerce and industry.

14. Of course, the unity of our races today is not due only to our language policy, though it did play a big part. Meritocracy, our housing policy, and community bonding efforts played key roles too. We could have become a fractured society and a failed state, but Singaporean society today celebrates both its unity and its diversity. It is a strength built out of many strands. It is a strength that allows us to bridge East and West, in commerce and in culture. It allows us to seek new opportunities in this new globalised world.

Vulnerable yet Totally Defended

15. Third: Why is Singapore still independent? As a small country in a tough neighbourhood, we cannot take our peace and security for granted. But defending a small territory, with a small population presents immense and almost insurmountable challenges.

16. With a small population, we cannot maintain a standing military force in the numbers required for a credible deterrence or defence. As a small country, we lack strategic depth to absorb an attack. All our key installations are within a small area, in relatively close proximity to each other. We do not even have enough land or air space in which to train our units.

17. To overcome the limitations of a small population, we have national service. National service allows us to train and have at the ready, a large enough force that can be called upon in times of national emergency. In times of peace, our national servicemen can continue to contribute to Singapore’s economic development.To overcome the lack of strategic depth, we have developed early warning systems. And Singapore's good telecommunications and transport infrastructure, and small size means that we can mobilise the SAF at very short notice. Our lack of training space also means that we have to train the SAF overseas.

18. But these systems and strategies meant to overcome our limitations have also caused us to develop many strengths which we otherwise would not have. National service has become not just a pillar for military defence of Singapore. It also serves as a unifying force that brings Singaporeans from all walks of life together in a common experience. National Service has become a rite of passage for young male Singaporeans and is an experience that bonds them all together. .

19. Our lack of training space has also forced us to be creative. The SAF conducts exercises with many other armed forces, both locally and overseas. Annually, we carry out about 70 exercises with foreign militaries on 5 continents. As I speak, we have some 1200 SAF personnel training in 5 countries. As a result the SAF has built strong ties with armed forces from around the world. Besides building friendships, engaging in bilateral and multilateral exercises allows us to benchmark ourselves against the best of foreign militaries as well as to learn from their expertise. This has sharpened the SAF's operational capabilities and readiness. Through our interactions, we have also built inter-operability and understanding that has helped us cooperate effectively during times of crisis, such as when the SAF was deployed for the post-tsunami relief operations, or when our ships and aircraft deploy to the Gulf to help in the stabilisation and reconstruction of Iraq, or when our soldiers deploy to Afghanistan..

20. Our challenging defence circumstances have also led us to realise that military defence alone is not enough to guarantee our security. We need all Singaporeans to play their part in Total Defence – military, civil, economic, social and psychological defence. Over the years, Total Defence has strengthened our social cohesiveness and psychological resolve. And when we have encountered serious challenges, it has helped us to act together as a nation to overcome them, such as the Asian Financial Crisis in 1997, the threat from extremism and terrorism, and the SARS outbreak in 2003. So, even though as a small country we have started out with many intrinsic vulnerabilities, by applying creative concepts and solutions and being prepared to work together and make sacrifices for national service, we have managed to build up a Total Defence capability that strengthens our social fabric, deters others from threatening us, and enables us to defend ourselves should threats arise.

21. Whether in defence or in other spheres of endeavour, we have not let our small size limit us. In fact it has been an impetus to reach outwards so that our links with the region and the world beyond are strong. We have negotiated Free Trade and Open Skies agreements with many countries. These agreements allow us to create a web of economic and transportation relationships that transcend our size and our region. Our diplomats through sheer hard work and creative diplomacy have broadened our linkages with the world. As a result, of these economic, diplomatic and military efforts, Singapore has a voice and influence that is larger than our small size.

Conclusion

22. Singapore has come very far since our stormy independence. Despite our limitations, we can continue to be confident in the future, so long as we remain nimble and adaptable, ready to respond to changing conditions, to overcome any challenge. We are resourceless, but resourceful – we may have to import resources, but we can know how to make every drop count and can export ideas and solutions. Instead of being divided, we are united in our diversity and have the world at our doorstep. We may be intrinsically vulnerable, but we are Totally Defended. We may be small, but we are linked up to the region and beyond.

23. For the young, the opportunities are unlimited. Although we cannot choose our circumstances, we are completely free to choose how we respond to our environment. There is nothing you cannot achieve, if you put your mind to it.

24. We cannot predict the challenges of your generation. But I am confident that with the same spirit of enterprise and the same drive to overcome the odds that you will turn the limitations you face into advantages, and lead Singapore on to greater success.

Thank you.