Speaking at his constituency's National Day dinner, Mr Lee, who is an MP for Tanjong Pagar GRC, said:

FREQUENT 'CHOP AND CHANGE' NOT A GOOD IDEA IN POLITICS 'We know that Singapore wants opposition to check the PAP. We'll find a way to have more voices inside the assembly, but not at the risk of voting in a Division 2 or 3 Government.' 'There are some who yearn for multi-party politics and rotating party governments. They should study Taiwan, Thailand, and the Philippines. Rotating party governments have led to more corruption and misgovernment. A 'free-wheeling press' has not cleaned up corruption, although according to American 'Democracy' theories it is designed to do so. Frequent chop and change in governments have hampered Taiwan's and Thailand's economic growth and increased unemployment and caused political instability.' MM Lee, speaking at the Tanjong Pagar GRC National Day dinner last night ... more RELATED LINKS  $3B boost

He pointed to a range of relief measures which will 'spread over $3 billion in support' this year.

Many are aimed at low-income earners, including the Workfare Income Supplement for those earning $1,500 or less a month.

Mr Lee's assurance was given against a backdrop of darkening economic prospects, a result of impending recession in the US, and possibly Europe and Japan.

'We have to be ready for rougher rides ahead,' he said in his speech, which also dwelt on the need for good leaders to ensure Singapore's continued success.

Singapore has the edge at the moment, he added, pointing to two things in its favour - a government that is clean and above-board and the national push to reskill workers for better-paying jobs.

A Continued Education and Training master plan was introduced this year to map out training paths workers can take to move into higher skilled jobs. But Singapore's fortunes are also tied to the fate of other countries in this globalised world.

'Singapore could grow at 5 to 6 per cent, even 7 to 8 per cent in some years, if there is no long recession in the United States and European Union. If they go into recession, then we may grow less, at 3 to 5 per cent.'

Mr Lee foresees the incoming US president taking tough measures to boost the country's economy in time for congressional elections in 2010.

Singapore has revised downwards its official growth forecast. Earlier this week, the initial 4 to 6per cent was changed to a narrower range of 4 to 5per cent.

Mr Lee also raised the spectre of lay-offs, saying they were likely in industries exporting to America and Europe, as slowdowns there would reduce demand.

But work permit holders will 'take the brunt of the retrenchments, saving many Singaporeans their jobs'.

Another buffer he identified was the region's two engines of growth: India and China. Their trade links with Asean could make up for the loss of business from the US and Europe, he said.

Further easing the impact are the 'shock absorbers' Singapore has in place.

One is the huge investment made in such projects as the integrated resorts and the $6.3billion plant for producing solar panels. They promise jobs for many.

Another is Singapore businesses casting their nets far and wide to places such as Russia and the Middle East.

So, when the US economy slows, Mr Lee predicts, 'we will not be hit as badly as we were in previous US recessions'.

Still, residents interviewed at the dinner have started to tighten their belts.

Said cabby Loy Chee Hun, 70: 'I've been spending less and I don't eat out so much.'

sueann@sph.com.sg

jeremyau@sph.com.sg

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