To grow and upgrade the economy is Singapore's main priority, said Prime Minister Lee Hsien Loong on Monday while delivering a National Day message on the eve of the 40th birthday of the Republic of Singapore.

"We need to develop new skills and capabilities, open new markets abroad, bring in investments and seed new areas of growth, " Lee pointed out, adding that the economic growth for this year is expected to be between 3.5 percent and 4.5 percent.

In mid May this year, the Singapore government lowered its economic forecast to between 2.5 percent and 4.5 percent from between 3 percent and 5 percent.

Calling economic growth "the best social welfare program," Lee said that prosperity provides the island state with the resources to tackle many difficult challenges, including the widening income gap, an aging population as well as the health care for all the citizens.

He added that the government will put more emphasis on building a first-class education system and remaking Singapore as a vibrant and cosmopolitan city so as to keep the country thrive in the process of globalization.

As China and India are emerging as strong and competitive economies, Lee said, Singapore will work more closely with other members of the Association of Southeast Asian Nations (ASEAN) to seek opportunities in the two regional giants as well as in the Middle East.

Lee reiterated that Singaporeans should remain vigilant against threats to the country's security and get psychologically prepared for possible terrorist attacks on it.

"I expect the next five years to be better than the last five. Therefore I am confident that working together, we will make Singapore grow and prosper beyond what we have today," Lee said.

The Republic of Singapore was founded on August 9, 1965.

Source: Xinhua