Remarks by President Tony Tan Keng Yam at the closing of the 2nd Fullerton-SJI Lecture Series

Distinguished Guests

Ladies and Gentlemen

Boys and Girls

        Good afternoon. I would first like to thank the Organising Committee for inviting me to close the second series of the Fullerton-SJI lectures.

        In this second series of lectures, the Organising Committee has put together a slate of distinguished speakers - Professor Leo Tan, Mr Richard Magnus, Mr Tony Chew, Mr Jeremy Monteiro, Br. Armin A. Luistro and Mr KF Seetoh – all of them established leaders in their own fields. We have benefitted from their candour and generosity in the sharing of their thoughts and experiences. Their experiences are different but they all share a common theme:  whether one’s chosen field is in the academic, public, business or creative sectors, a whole-hearted pursuit of one’s passion is vital not only for personal success but also for leadership.

LaSallian Education

        As an old boy, I benefitted from the Lasallian education, first in St Patrick's School and then in SJI. It has been many years but I remain grateful till this day to my teachers and the La Salle Brothers who taught us to be the best that we can be, to lead useful lives and to contribute to society. By example, they showed us what it really meant to be people of integrity and people for others. At St Patrick’s and SJI, in addition to learning life skills and academic knowledge, we experienced the meaning of service to the community, the importance of respecting differences of views, and the value of diversity. 

        SJI was founded more than 160 years ago on the vision of the Reverend Father Jean Marie Beurel to serve everyone in our multi-racial, multi-religious society. I am glad that SJI to this day still adheres to Father Buerel’s vision although SJI has gone through many changes to adapt to an evolving educational landscape and to meet the needs of newer generations of students. In the Lasallian tradition, SJI continues to embrace all members of our community regardless of race, language, creed or religion. SJI students are taught to see themselves as part of a larger community, and to serve all segments of our society. These Lasallian values are timeliness and remain as relevant today as in Father Beurel’s time.

Singapore’s Development as a Nation

        Similarly, Singapore has also seen many changes over the past 48 years. After gaining independence in 1965, we faced many challenges as a nation. We did not have natural resources or a hinterland to provide for a young and growing population. Unemployment was high and our people did not have adequate access to housing and education. 

        Nevertheless, through hard work, good policies, persistence and resilience, we did not give up - we went from third world to first world in one generation. Today, we have virtually full employment, nine out of ten Singaporeans live in their own homes, and young Singaporeans, have a wide range of education opportunities up to the tertiary level. We have good infrastructure, especially our sea and air ports which are world class, and our public services are efficient.

        As we develop, new challenges will continue to emerge. We cannot stand still.  Our population is aging, and  as our economy matures, we must expect our economy to slow down. Thus far, we have benefitted from globalization as a small and open economy, and today’s flatter and more interconnected world brings both opportunity and vulnerability. We have to surmount these challenges.

        I am confident that Singapore will continue to do well despite these issues because we are today, in a stronger position to face these challenges in the future and we have good economic fundamentals. Our workforce is better educated and better-trained than before, and we have invested in Research & Development to stay competitive into the future.  

Protecting our Financial Reserves

        As our economy grows through financial prudence and discipline, we have built up ample Financial Reserves to ensure a stable currency and to buffer Singapore in times of crisis. We have seen how crucial our financial reserves were for a small nation like Singapore, without natural resources that is heavily dependent on international trade and finance during the last Global Financial Crisis from 2008 till 2010. Then, to shore up confidence in Singapore’s financial institutions amid a deepening credit crisis which was world-wide, Singapore was able to provide a guarantee on all bank deposits from October 2008 till 2010, which was backed by $150 billion from our Financial Reserves. When the global economic environment deteriorated further in January 2009, $4.9 billion from the reserves was drawn for the first time in our history to tide Singapore through the crisis by funding extraordinary measures, to encourage employers to keep workers on their payrolls and to boost bank lending to cash-strapped companies. So unemployment did not rise very high and we were one of the first to recover from the crisis because of these measures which were possible only because we have strong Financial Reserves. By 2011, the Government had put back into the reserves the amounts drawn down to fund the extraordinary measures taken during the economic crisis.

        On an annual basis, our Financial Reserves also generate income that supplements our budgets to meet our increasing social expenditures without affecting our economic competitiveness. With effect from FY2009, under the Net Investment Returns (NIR) framework, up to 50% of the expected long-term real rate of returns on the relevant assets specified in the Constitution can be taken by the Government for spending.  The NIR now contributes around 15% - 16% of the Government Expenditure.

        As the President, I am responsible for ensuring the integrity of the Reserves and I will continue to make sure that the Financial Reserves are used judiciously for the benefit of Singaporeans now and into the future.

Building Up Our Social Reserves

        Economic growth and financial stability remain fundamental to Singapore’s progress and prosperity. But they are not everything. However, for Singapore to continue developing and to thrive as a nation, we need something more – something that I would like to call “Social Reserves”.

        To use a simple analogy, our Financial Reserves are like the piggy bank of a family and Social Reserves are the bonds that unite the family. The Social Reserves of a nation are the intangible ties that bind us to one another, and which make a nation greater than the sum of the individual citizens.  Social reserves are the goodwill that makes us look out for one another even during difficult times, they are the resilience to overcome challenges and constraints, and they give us tenacity to progress as individuals and as a nation.

        Financial Reserves are tangible and can be tracked to ensure that it grows, Social Reserves are intangible and we will only know how much we have when we need to draw on it. Just this year, we saw a good example of how we drew on this Social Reserves - during the Haze period, I was very encouraged that Singaporeans looked out not only for themselves, but also for one another. Masks were available but teams of volunteers made it possible to distribute them quickly to those in need.

        While it is the responsibility of the Government to operate with financial discipline and fiscal prudence, and we can engage professionals to manage and grow our Financial Reserves, every Singaporean must be involved in growing our Social Reserves. We cannot leave Social Reserves in the care of others.  Individually, we decide how to tend and grow our Social Reserves.

        For example, our cultural diversity and vibrancy is our strength and we all must play our part in maintaining the mutual respect for the different languages, traditions and religions in our midst. Singapore has welcomed people from all over the world as a trading port since the 14th Century. Like SJI, which embraces students from any race or creed, inclusiveness is a cornerstone of our society.  Singapore is and must remain as an open economy to continue to generate opportunities for all.  As citizens in a multi-cultural and global city, every Singaporean has a part to play in enhancing the understanding of and respect for the different cultures among us.   

        Another way that Singaporeans can contribute towards our Social Reserves is to care for the people around us. As President, I have the privilege to meet people from many walks of life, many professions, different backgrounds and age groups. I have been encouraged by many Singaporeans who serve the communities around them, whether it is in their workplaces, schools or neighborhoods. I am happy that SJI continues to emphasize community service to build up our boys to become ‘Men for Others”. Last year, I expanded the President’s Challenge beyond fund-raising to also promote volunteerism and social entrepreneurship. I hope that the President’s Challenge will contribute towards building stronger Social Reserves by encouraging our people to do what we can, no matter how big or small, and to look out for one another, especially the needy -as SJI says, the last, the least and the lost.

Conclusion

        Our Financial Reserves, comprising fiscal surpluses accumulated over the years, are akin to our savings in the bank, which we draw on in emergency situations and for funding of future needs.   Our Social Reserves define who we are as a nation and we draw upon them for resilience and stability in any crisis, not just financial crisis.

        There is a connection between Financial Reserves and Social Reserves. Financial Reserves supports our economic growth which generates the resources for our investments in various social institutions such as the HDB estates, our schools and universities, and national service, which help build up our Social Reserves. In turn, our Social Reserves support our hopes and dreams for future generations, create a conducive environment for economic growth and ensure that no one is left behind as Singapore progresses.  

        Both Financial Reserves and Social Reserves reinforce each other, to continue creating opportunities for Singaporeans, particularly the young.

        Every Singaporean has the opportunity to help the country build up our Social Reserves by building trust and caring for one another in good times and in bad.  We support one another so that we can become the best that we can be and build a future for ourselves and future generations.

        Thank you once again for inviting me today to close the speaker series.  I look forward to interacting with all of you later at the reception.