Speech by George Yeo, Minister For Foreign Affairs, at the Harvard Club of Singapore Annual Dinner on 12 Oct 2006 at 7.45 pm

TO BE BORN AT THE RIGHT PLACE AND TIME

1. During the recent Non-Aligned Meeting in Havana and the UN General Assembly in New York, the war in Lebanon and the killings in Darfur were hot subjects. The problems of the Middle East and Africa are complicated and not easily solved. On one day in NY, I met ministers from the Gulf in the morning and members of the American Jewish Committee in the afternoon. Separately, both commented that Singapore was fortunate to be in a much better neighbourhood than theirs. Many Singaporeans are not aware that quite a few countries in the developing world hold Singapore up as a model of development for themselves.

2. We are lucky to be where we are. If Singapore were in the Middle East, we could not avoid being caught in the maelstrom. If we were located in Africa or Latin America, our lives would be much harder. At this time in history, Asia is not a bad place to be in and being in between China and India, without being too close to either, puts us in a good position.

3. One generation ago, our position was very different. The Cold War was still raging. In Indo-China, a terrible war was being fought. I remember as a secondary school student in the 60's listening to the AM radio station of the US Army in South Vietnam. Cultural Revolution China was then in turmoil. Socialist India was stagnating. In Indonesia, rivers of blood flowed after Sukarno fell. There was little pride in being an Asian, whether as a Chinese, Indian or Malay. During my years as an undergraduate in England, Asians were often looked down upon.

4. While the big countries in Asia turned inwards to rediscover themselves after decolonisation, Singapore, together with South Korea, Taiwan and HK, stole a march forward by maintaining political stability and concentrating on economic development and exports. These were the four NIEs (newly industrialised economies) on the periphery of the Asian mainland. Singapore benefited from the institutions bequeathed to us by the British especially the rule of law, the protection of property and adherence to international standards, and by the US, Europe and Japan helping us and wanting us to succeed.

5. Eventually the growth spread into the Asian mainland. After a long time, China and India are finally re-emerging as two major poles in the world. With the end of the Cold War, an entire continent is now on the move. A great tide is flowing and we are fortunate to be in the middle of it.

6. This is an exciting period but also a challenging one. There are dangers as well as opportunities. If we do not steer our boat well, we can get into trouble. If we lose concentration, our boat can capsize.

7. Younger Singaporeans should be prepared for the adventure. On the whole, those under 40 years old, the post 65 generation, are well educated. Most would be competent in English and their mother tongue. If there is one deficiency, it is that life in Singapore is too sheltered. As one Singaporean told me at a reception in New York, many young Chinese and young Indians would think nothing of travelling long distances to study and work, from one province or state to another. They are forced to be independent early and take life with all its roughness, expecting little of government. But, even so, when Singaporeans do go overseas, they learn quickly, although sometimes by making mistakes.

8. For some older Singaporeans, however, this new world is not at all an easy ride. Many of those born during the baby-boom years from 1945 to 1965, who are now 40 to 60 years old, have only a primary or a partial secondary education. In a competitive globalised economy, their wages are being kept down by competition from other countries. When there is an economic downturn, they are the first to be retrenched and the last to be re-employed. Among some of them, there is a deep sense of economic insecurity with children still schooling and mortgages to be serviced. Without blunting the incentive to work, we must help those who fall into hard times for one reason or another. It could be bad health or just bad luck. This is very important. Whatever happens, we must maintain the solidarity in our society. When I was in Cuba, I gave a short speech that while Cuba and Singapore took very different paths to development from the beginning, we shared a common approach in one area, which is the full development of our human resources. There is no illiteracy in Cuba unlike other parts of Latin America. Basic healthcare is excellent and one of Cuba's major exports is doctors. I said, half in jest, but only half, that Singapore is socialist in three areas - health, education and housing. A senior minister responsible for the economy whom I called on surprised me when he said that he had read Lee Kuan Yew's memoirs with interest. However, until Cuba frees up its economy, its progress would be limited. We can't afford to be like Cuba. We would harm ourselves by fighting globalisation. Our approach is not to protect jobs but to prepare Singaporeans well for global competition.

9. We must also never take our racial and religious harmony for granted. Take Pope Benedict's recent remarks on Islam as an example. This was not a controversy in some far-off place. It had immediate reverberations in Singapore. Happily, we have Catholic and Muslim leaders in Singapore who spoke up quickly to calm emotions. The key here is never to assume that what is acceptable to us is also acceptable to others. MICA did not ban the film 'the Da Vinci Code' because it was entertainment and not likely to inflame hatred. Some Christians were unhappy of course but that was to be expected. However, if an equivalent distortion of Islam were to be screened, the reaction would have been extreme. When I was MITA minister, we banned Salman Rushdie's Satanic Verses while allowing 'the Last Temptation of Christ' because the Muslim reaction was entirely predictable.

10. Sometimes, as Singaporeans, we wonder whether we are better off being homogeneous. Perhaps life will then be simpler. Having to show sensitivity to others who are different from us is an effort and can be bothersome. But this is too simple a view. What we are in our deep make-up reflects our past and our future. It is only because we are diverse in our internal construction that we are able to occupy this particular niche in the global economy. If we are not multi-ethnic and multi-religious, we would not be able to establish good relations with our neighbours and with China, India, the Middle East and so many other countries in the world. Young Singaporeans enjoy an advantage precisely because we have this multi-channel capability built into us from an early age. It is in our soil, in the very air we breathe.

10. On the whole, we are not doing badly. We are succeeding in the restructuring of our economy. The present growth we are seeing reflects this. EDB continues to attract high-quality investments. Instead of competing head-on with China, India and other low-wage cost countries, we are developing in a complementary way to them, using their cheaper outputs to reduce our imput cost and adding value in areas where we continue to enjoy significant advantages.

11. Our most important strength is the basic attitude of our people. Let me highlight three important aspects of this basic attitude. The first is the insistence of good government. That is fundamental. Without a good, clean government, nothing else is possible. We have only to look all around us. There are thousands of islands in Southeast Asia. Why this particular barren rock called Singapore should flourish is because we operate a unique system which attracts people and money to our shores. That was why our ancestors came here. With good government, there is law and order, ethnic and religious harmony, and the protection of property, including intellectual property. Upon this, we have developed probably the most efficient logistic system in the world, moving goods, people, information and money.

12. The second aspect is a practical sense of reality, that if we don't work, we don't eat. That focuses the mind. Because of this, we have a culture of hard work and discipline. Knowing that no one owes us a living, families save and parents put great store by the education of their children. If we had reserves of oil and gas, or mountains of gold and silver, our mentality would naturally be very different. But we have none; and everyone knows that there is a limit to income redistribution. If we overtax members of any group, many will leave. All this keeps our domestic politics relatively simple and humdrum. It also undergirds our attitude towards National Service. If we do not protect what we have, it will be taken from us.

13. The third aspect of the basic attitude which serves us well is the outward orientation of Singaporeans. This is not only a matter of policy; it is expressed in our culture and in our daily lives. Singapore exists only because it is a useful part of a much larger global system over which we have no control. Our trade is more than three and a half times our GDP. Singaporeans routinely travel overseas for study, work and play. Large numbers of foreigners visit or live here. We have a culture which is highly mixed. A Singapore that is not outwardly-oriented cannot prosper. Our kids in primary school are now used to having foreigners as classmates. In the universities, in our research institutes, in the workplaces, in our theatres and orchestras, Singaporeans and foreigners work side by side as colleagues and friends. Naturally, some will also fall in love and produce offsprings. Four in ten marriages are now between Singaporeans and foreigners.

14. Should one day the pendulum of history swing the other way with countries closing their borders and tribal instincts becoming exclusive again, Singaporeans will find it hard to make a living. How can we survive in such a world? Our economy will grind to a halt and our social fabric will be torn apart. Many will emigrate and those who do will quickly take on other loyalties. We are not Switzerland. We don't have the Swiss seven hundred years of history. For the forseeable future, however, globalisation is going to become more extensive, not less. And that is good for Singapore, provided we stay alert and respond quickly to changing sea and wind conditions.

15. Singapore society is now entering a creative phase. In many fields, our people are doing wonderful things, big and small. When recently I was in Panama, with which we signed a free trade agreement earlier this year, I found Singapore companies making inroads far away from home. Crimson Logic supplied the new computer system for the Canal. InterRoller provided a new baggage handling system for the airport. ST Aerospace has taken over a few hangars from the old US Air Force base and will turn it into a regional maintenance centre for civil airliners. In Brazil, Keppel Fels and Sembawang dominate the offshore oil platform industry. President Lula, when he launched his first election campaign, did it at one of our shipyards. Singapore companies can now be found on every continent doing different things. In Qatar which I have just visited with DPM Wong Kan Seng, the Singapore presence is growing. Even so, my good friend, the Finance Minister, complained that not enough Singapore companies were there. Everywhere our people are, they enjoy a reputation for competence and reliability. It is a reputation which we must jealously safeguard.

16. But it is what we are able to do here in Singapore that matters the most. This is the home base which nurtures the next generation. We have to keep improving and learn new tricks. No one is going to wait for us. For some Singaporeans, we might be moving too fast. For others, we are moving too slow. We have somehow to strike a balance and move at a speed which the great majority can accept. But we can't afford to slow down. In the end, it is our domestic politics which determine the speed at which we move. Some stretching out of our income distribution is inevitable but we must continue to look after those at the bottom and ensure that no one is left behind. So long as we keep our good sense and don't take too many liberties with ourselves, the future is bright because the future of Asia is bright. All said, we are fortunate to be born at the right place and time.