In his May Day message on Tuesday, Prime Minister Lee Hsien Loong said that although Singapore's road ahead is challenging, he is confident that the country will succeed in making the economic transition.

"We have successfully restructured our economy before. Each transition was difficult, but each time we emerged stronger, and improved our standard of living," he said.

Mr Lee added: "Our well-educated and productive workforce is one of the world's best. Asia is doing well, which will benefit us as long as we stay competitive. Singapore's international standing is high, both in Asia and in the developed world. We must maintain this confidence and reputation, to continue attracting investments and creating good jobs for our people."

He also called on companies, workers and unions to do their part even as the Government works to attract investments, and help workers and businesses adapt to the new environment. He said: "Together, we must uphold tripartism, and keep it our lasting competitive advantage."