Mrs Lim was addressing some 360 student leaders from 54 secondary schools, including Hwa Chong Institution, Woodlands Secondary and Bedok View Secondary, among others, in a student convention that began on Tuesday.

The students, aged between 13 and 17, have four days to discuss and write action papers relating to the theme: 'Welfare and Development: The Economic Challenges For Youth'.

In her keynote address, Mrs Lim, who is also Minister in the Prime Minister's Office, reiterated the need to manage Singapore's potential 'stress points', as the nation continues to battle rising unemployment figures amid its worst recession.

'The first potential divide is between Singaporeans and non- Singaporeans. The second is between the more successful and less successful. The third potential strain is between races and religions,' Mrs Lim said.

To prevent these divides, Mrs Lim urged Singaporeans to remember the nation's immigrant history, to invest in education, and to remind themselves that Singapore is a 'common secular space where trust, confidence and respect between religions and races can be built.'

The minister's speech was followed by a 40-minute dialogue session, during which students peppered her with questions, mostly about the Government's plans to ride out the current recession.

Responding to a Hwa Chong student's query on how the Government is minimising the impact of reduced wages and job losses, Mrs Lim said: 'Our initiatives must always be twin-fold; to try and solve immediate challenges in the short-term while keeping an eye on the longer term.'

'Right now, we are doing all we can, including tapping into our reserves, to save jobs and minimise the pain of unemployment.'