'He (PM Lee) has to restructure the economy from time to time including making tough decisions like allowing casinos in the integrated resorts,' Mr Goh told the Korea Herald, an English-language daily, on Friday during a four-day working trip to South Korea.

That decision had led to a boom in the construction and financial industries with more investment in offices and hotels. Singapore's economy grew by 7.7 per cent last year.

Other decisions that PM Lee took to revitalise the economy include staging a F1 Grand Prix, the Volvo Ocean Yacht Race and the 2010 Youth Olympics Games.

Another challenge is maintaining strong security measures against the threat of terrorism, noted SM Goh in commenting on Singapore's top priorities.

'We need to promote peace and stability in the region for a small country like Singapore to thrive,' he said.

During the wide-ranging interview, SM Goh also talked about how Singapore tackled the problems that come with an ageing population. South Korea is in the same situation.

He said: 'The primary solution is to get people to have more babies but that is very difficult.'

Also, the government has to ensure that senior citizens have enough funds and insurance coverage for their health-care needs.

Those who cannot afford it will still be 'looked after by the state'.

One other solution is equipping people to work longer through training.

SM Goh said: 'Work makes life meaningful. The longer you work, the more funds you have, the healthier you are and the less need you will have for health services.'

Buying an annuity is a way of ensuring a life-long income for senior citizens, he pointed out.

On Singapore's need for foreign workers, SM Goh said the group must be recognised as comprising three tiers, with professionals, business people, researchers and entrepreneurs who bring in capital and skills at the top.

'When they come in, they create jobs for other people,' he said.

At the middle level are people like supervisors and nurses that Singapore lacks.

The less-skilled ones are also needed to do the menial jobs shunned by educated Singaporeans.