Singapore is well-prepared to face global challenges, Singapore's Minister for Education and Second Minister for Defense Ng Eng Hen said on Friday.

"In times of strong economic growth, we took the opportunity to diversify the economy, budgeted wisely and accumulated reserves for a rainy day," he said at a national day observance ceremony as the nation marks its 44th year of independence.

He said that Singapore has deeply felt the impact of the global financial crisis.

This year, the economy is expected to contract between 4 and 6 percent, with unemployment at 3.3 percent.

"While there are some signs that the economy is improving, it is too early to conclude that the crisis is over. Similarly, we do not know whether H1N1 will become more virulent. The recent bomb blasts in Mumbai and Jakarta remind us that terrorism is a continuing threat. Even as we strive to live as normally as possible, we must remain vigilant and ready to act against all challenges," he added.

He said that Singapore has a technologically advanced third generation Singapore Armed Forces today which is not only capable of defending its homeland, but is also a responsible member of the international community.

He also said that Singapore has invested heavily to overcome our reliance on imported water. Besides sharing our experiences with countries that face similar challenges, local and international companies also successfully clinched 2.2 billion Singapore dollars (1.54 billion U.S. dollars) worth of deals in water technologies, which is a great achievement for a country previously dependent on others for water.

He urged Singaporeans to embrace new principles and ideas to meet changing demands of the future, and never too take its survival for granted as each has a role to contribute to Singapore's future success.

Source: Xinhua