'We're actually very nice in Singapore, but people often don't know how to show it or how to say it, or they're afraid of being misunderstood' if they show kindness, he told the award recipients.

Mr Koh Poh Tiong, chairman of the Singapore Kindness Movement, said graciousness has to come from the heart and should be taught at home.

'We can do it... even Hong Kong has improved Its courtesy, and so has Korea since the 1970s,' he said.

Turning to the economic downturn, Mr Tharman urged hotels, restaurants and other service sector establishments to take advantage of the government's skills upgrading schemes to build a service culture that is 'excellent'.

The government has pledged $600 million over the next two years to fund employers and workers' skills upgrading, under the Spur programme.

At the National Courtesy - Service Gold Award ceremony, organised by the Singapore Kindness Movement and the Singapore Hotel Association, a record 118 staff from 61 hotels received awards for courteous service.

The number of recipients is the highest in the award's 14-year history.

Recipients included the Grand Hyatt hotel's Miss Nurliyana Sayali, who organised a birthday party for the daughter of a regular guest when he was unable to attend, and Mr Kenny Oh of St Regis, who helped an elderly woman who was injured in a car accident outside the hotel.