In his National Day Rally speech given in Mandarin earlier this evening, PM Lee noted that small and medium enterprises (SMEs) were affected more greatly in the financial storm, but said the government has implemented measures to help them, and many have shown the spirit to do well in adversity.

PM Lee also said there will be many opportunities in Asia if the market is well understood. An example he highlighted was how the furniture industry has turned from a sunset to a sunrise industry.

He said that the Singapore brand is a powerful weapon for businessmen here to succeed overseas. Said PM Lee: 'The Singapore brand is a unique weapon that businessmen can use. Never wreck it; instead treasure it, enhance it, so that we can win every battle in the business market.'

Singapore's name is a symbol of excellence, he continued.

On overcoming the challenges ahead, he said S'poreans must be self motivated and seize opportunities to upgrade themselves. To master a skill is the only way to get out of difficulty, he said.

"Singaporean workers have used SPUR (Skills Programme for Upgrading and Resilience) to train and upgrade themselves through the many courses offered. And jobless workers have used e2i and Community Development Councils to undergo employment training and to find new jobs."

"The world economy will recover slowly. When that happens we'll be ready," he said.