2011 was a significant year for Singapore. Singaporeans went to the polls twice, and elected a new government and President. Having made a significant political transition, we are all now adjusting to new norms in a changed environment.

We achieved steady growth of 4.8% this year. The external environment is uncertain. Debt problems in Europe are far from solved. Next year looks like being difficult for the global economy. As a small, open country, Singapore will inevitably be affected.

Amid this flux, we need to be confident of our position, and clear about our priorities and plans to build a better Singapore. We are working hard to tackle our immediate challenges.

The Government is committed to keeping homes affordable to all Singaporeans. We launched 25,000 BTO [Build-To-Order] flats this year, enabling many first timers to book their HDB flats. In 2012 we are launching another 25,000 BTO flats. In the private property market, the Additional Buyer's Stamp Duty will moderate capital inflows and foreign demand, and help to stabilise prices.

We will redouble efforts to improve our public transport system and expand the train and bus network. We will identify and put right the causes of the recent MRT disruptions. The Circle Line, completed in October, now transports 300,000 commuters daily. More MRT lines are on the way. We will also continue to enhance bus services to improve the daily commuting experience. However, these improvements will take time, so meanwhile please bear with us.

Beyond these pressing concerns, we are attending to long-term issues to improve Singaporeans' lives.

Healthcare must stay affordable and accessible to give Singaporeans peace of mind. We are enhancing our education system to give young Singaporeans the best possible start in life. We must uphold inclusive growth and social mobility as pillars of a united Singapore. This calls both for upgrading our skills and productivity to improve wages, and for strengthening our social safety nets.

Population is a particularly complex and critical challenges. Like most other developed societies, Singaporeans are having too few babies, and our population is ageing. We must find workable solutions to keep our society vibrant and forward-looking, maintain our economic vitality and strengthen our Singapore core.