Singapore should focus on three core strategies to tackle the challenges it faces. Compared to other countries, our situation is certainly not perfect, but we must see our progress in perspective, said Prime Minister Lee Hsien Loong.

He was addressing some 1600 members of the Labour Movement family and tripartite partners who had gathered this morning at Downtown East for the traditional May Day Rally.

Firstly, PM Lee highlighted that we must keep Singapore open and embrace the world. It was important to be an outward-looking and confident society, be willing to change, welcome competition, new ideas and be willing to explore new opportunities.

Secondly, it was crucial to grow the economy on a sustainable basis and share the fruits of growth with all Singaporeans.

And thirdly, it was important to focus on translating growth to higher wages and better lives.

"Our ultimate aim is to improve lives for all Singaporeans, especially average Singaporeans and those with lower incomes,” he said.

He took the opportunity at the rally to put forth his stand on Professor Lim Chong Yah's wage restructuring proposal. While he agreed with the good intentions and shared the goal of helping low-wage workers, he did not agree with the drastic approach.

The only realistic way was to move step by step, with wages and productivity moving up together, he cautioned.

PM Lee further explained that it was better to aim for sustainable improvements and not take a big risk with short term jumps in wages.

"I promise you this. We will always do our best to uplift low-wage workers," he added.

In summing up, PM Lee said: "We are ahead of many other countries, must maintain our lead, make the right moves, and make sure that we and our children will enjoy better jobs, better pay and better lives for many more May Days to come."