To meet the challenges of the new world order, it will have to seek new markets, adapt to changing trends and master new capabilities in manufacturing, services and other emerging industries, said President S R Nathan in his address when he opened the second session of the 11th Parliament on Monday night.

'Once we start growing again, we will face increasing constraints of our limited land and labour. We must make well-judged trade-offs to optimise our potential. We must also consider new factors, such as reducing energy consumption and carbon dioxide emissions to achieve sustainable development and stay ahead as an Asian city with a high quality of life,' said Mr Nathan.

In politics, the political system will evolve, he said. There are also emerging social stresses which will need delicate management, and require citizens and government to work together to strengthen cohesion.

Looking further ahead, President also raised other areas which will need fresh rethinking and creative answers to better position Singapore for the future.

'How can we capitalise on new markets and emerging industries for growth and diversification? How can we build new capabilities and anchor value in Singapore for the long term? How can we deploy our finite resources to maximum effect? And how can we create good, high-value jobs for Singaporeans?' he said.

Urging Singaporeans to build on what they have achieved, he said: 'Our success has been the result of right policies, good government and a united people. The present world situation is graver than any in our experience. We are well prepared for it.'

His address comes against a starkly different backdrop from the opening of the first session of Parliament in November 2006, which was followed by two very good years of growth averaging 8 per cent.

This time round, Singapore is battling its worst ever recession and its GDP is expected to contract by 6 to 9 per cent, with rising unemployment.

President Nathan said the Goverment's immediate priority is to see Singapore through this economic crisis, and the best strategy is to help companies stay viable and continue employing workers, through upskilling and re-skilling them.

With the various decisive measures in place, including the Spur scheme and Resilience Package, and drawing on past reserves to fund them, he said Singapore's response to the crisis has strengthened its reputation, is yielding results, and will put it in a strong position for the future.

He expressed confidence that Singapore would be able to overcome the economic downturn, as it had in previous crises, and emerge stronger because 'we are well prepared for it,' and that its success has been the result of 'right policies, good government, and a united people.'

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