Its target will be to keep companies afloat, save jobs and help low-income Singaporeans, he said on Wednesday at the 10th anniversary dinner of the Singapore-MIT Alliance, comprising the Massachusetts Institute of Technology, National University of Singapore and Nanyang Technological University.

The aid for businesses will include special schemes to help them reduce their costs and maintain access to urgently needed financing, he added.

These new schemes will be in addition to measures taken by the Government recently to tackle the credit squeeze faced by companies here.

Mr Lee noted that by helping companies stay afloat, 'they can provide jobs for Singaporeans'.

There will also be measures to help households, especially needy families, he added.

However, he cautioned against expecting the Budget to bring an economic turnaround overnight.

'No government package can do that. But it will help us to see through this difficult period, and emerge stronger.'

As it tackles the immediate problems, the Budget will also not lose sight of Singapore's long-term needs and opportunities, said Mr Lee, citing two areas where Singapore would keep investing steadily: education, and research and development.

Such measures will improve Singapore's competitive edge and build new capabilities, he added.

'Asia is the place where the world's growth has been and will continue to be after this storm has passed. When the clouds clear, as they eventually will, Singapore must be well-positioned to grow at the heart of Asia again,' he said.

The PM also warned against expecting too much from the unprecedented steps governments across the world, including in the United States and Europe, had taken to tackle the crisis.

'We fervently hope these efforts will succeed. But even under the best scenario, we have to be prepared for a long downturn, and probably several years of slow growth thereafter.'

Finance Minister Tharman Shanmugaratnam will deliver the Budget statement at 3.30pm on Thursday. It will be broadcast live on TV and radio, and also on the Internet at www.singaporebudget.gov.sg