Mr Ng Pock Too, Chairman OF NTUC Income Board

Mr Tan Kin Lian, CEO of NTUC Income

Distinguished guests

Ladies and Gentlemen;

Thank you for inviting me to your annual get-together.

2 As we come to the end of Year 2002, this is an opportune time for us to reflect on what has happened these past eleven months and what lessons it holds for us.

3 We started 2002 with much confidence and anticipation, after moving out of our worst recession since Independence. The first half of this year gave us hope as the economy showed signs of a recovery. However, with the slow down of the US and Japanese economies, as well as the threat of war in the Middle East, we are again faced with the possibility of another recession.

4 Competition with China for direct foreign investment and exports is likely to intensify. China outlines its development strategies for the future at the Communist Party Congress. We can expect China to pursue its economic policies even more aggressively as it aims to achieve full-scale modernization by the year 2050.

5 Nearer home, competition with our neighbours is increasing as their economic infrastructures develop. Terrorist activities such as the recent Bali blasts have also affected the economic attractiveness of this region.

6 All these developments tell us that the current downturn is not a cyclical but a structural one. Thus, the Economic Review Committee (ERC) was established to undertake a fundamental makeover of our economy. Many of the ERC sub-committees have since released their recommendations.

7 One key priority must be to tackle the rising unemployment rate, especially structural unemployment. In the longer term, we must equip our workers with the essential skills to support future growth, by encouraging training, re-training and life-long learning. But in the short-term, the more difficult task is to create new jobs and to encourage unemployed Singaporeans to take on the many jobs that are available.

NTUC Income's initiatives

8 NTUC Income has certainly come a long way from its early days of providing affordable life insurance to the low-income and general public. I am glad to note that NTUC Income has come up with several initiatives to develop the domestic service industry and help create jobs for the unemployed.

9 It recently announced the 'Big Trumpet', a community portal that offers a range of services essential for people's daily lives, including job matching and promotion of small businesses. Users can access the various job data banks, including those from NTUC Income and the Ministry of Manpower. The portal also aims to employ 5,000 business agents to promote services to NTUC Income's business partners and end users, both local and overseas. In essence, 'Big Trumpet' ties in with NTUC Income's vision of providing a better life for the community.

10 I am glad to note that NTUC Income is actively helping retrenched older workers find jobs. I am told that retrenched and older workers above 40 years old are given priority in your recruitment of Customer Relations Officers.

11 NTUC Income has also put in place many relief measures such as crisis loans and premium relief schemes to help its policyholders.

12 The insurance industry in Singapore has evolved from just providing basic protection to giving sound financial advice and planning. Insurers today provide a wide choice of investment products to their customers. With an aging population, planning for retirement will become more important in the future. I understand that NTUC Income is moving in this direction by introducing a new plan for customers to obtain investment returns with insurance coverage.

13 One initiative of NTUC Income that I am particularly pleased to highlight is NTUC Income's sponsorship of the S. League. You were the title sponsor of the S. League for the 2001 and 2002 seasons. I understand that you are continuing your title sponsorship of S. League 2003 as well as the Singapore Cup 2003. I thank you and hope that you will remain committed in your support of S. League's move towards GOAL 2010.

Conclusion

14 These are uncertain times for all of us. However, I am confident that NTUC Income is able to rise up to the challenges while remaining true to its cooperative principles. Let me congratulate the Board, Management and staff of NTUC Income for bring NTUC Income to where it is today, a leader in its industry and a respected corporate citizen. On this note, let me wish NTUC Income all the best in the years ahead.

Thank you.

Date: 15 Nov 2002

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Last updated on 18 May 2006