A new Asia is being created. It is being driven by an openness to ideas, capital and trade, and a new spirit of collaboration between states, political parties, enterprises and people. The integration of the Asian economies is bringing a new wave of opportunities, on a scale that has never been seen in world history. And younger generations of people all over Asia are defining new aspirations for themselves, working hard to achieve their dreams, and gradually changing the societies they live in for the better.

China and India are the leading actors in this emerging Asian story. They are transforming themselves, and transforming the world. Already today, China and India together produce 600,000 engineers each year. But they are a very small faction of their respective populations in each age cohort. In the coming decade, they will produce large numbers of young graduates, anxious to get ahead in life, create new opportunities and succeed in ways that their parents could not have imagined. They will propel China and India’s growth and advancement in the world in the decades ahead.

The rest of Asia stands to gain from engaging with these two, continental-scale economic players. We will do well if we engage and participate actively in the growth and advancement of China and India. We can do so while we each retain our unique identity and character as nation states.

Over the next 20 years, Asian cities will become key players in the global knowledge economy. Siemen’s, the leading German manufacturer, recently launched its latest mobile phone. It was designed from scratch in its Shanghai research laboratory, its first design to be conceived outside its German laboratories. Shanghai is not alone, and the example is not unique. Economic growth in key cities across Asia is being driven by the ability to innovate, not just to make things more cheaply. The fastest growing industries and the most advanced cities in Asia are being driven by ideas, innovation and productivity.

But Asia’s prosperity is not assured. The shocks that the region has faced since the late 1990s — first the Asian crisis, then terrorism — illustrate the threats and uncertainties that we face in a more globalised, post-Cold War world. We have to deal with the threats openly and honestly with our people. We have to give our people confidence in the future despite the uncertainties, so that they can make the most of the huge opportunities before us in Asia.

Within each of our nations, we face the challenge of preventing divisions in society as we open up to market competition and grow our economies. Globalisation and the opening of markets is necessary for economic growth and prosperity, but it does not bring benefits evenly to all sectors of society. We have to invest more heavily in education and skills training to help all sectors of society benefit from the market economy, provide support to citizens who are displaced by the restructuring of our economies and help them find new jobs. We have to help all our citizens feel the benefits of prosperity.

But prosperity is not our only goal, and a nation is not just an economy. We want our citizens to feel as one, feel that they are one people regardless of social class, race or religion, share their joys and aspirations together, and reach out to help another person when he is in need. We have to keep working politically to achieve this cohesiveness in society.

Leadership succession in Singapore is built into the political process. At each General Election, the PAP fields a large number of new candidates. The political leadership also takes responsibility for identifying and grooming future successors well ahead of time, and testing them out in various positions over a period of years. The self-renewal ensures that political leadership keeps moving with the times and stays open to new ideas. It allows the Party and Government to stay connected with the aspirations and needs of new generations. It also allows us to maintain a consistent course, and keep the unity of purpose among young and old.

The third generation leadership will lead a new Singapore.

In short, we are building a more open and inclusive society, where every citizen’s views count and every citizen is encouraged to contribute.

We are reshaping the way we educate our young. We want them to think for themselves, and to question actively as they learn. We are giving them the space and opportunity to pursue their passions, to focus less on their examinations, and to see that there are many paths to success. We want them to be always willing to try out something new or different, and to be unafraid of failing or making mistakes. That is the basis for innovation.

The future is full of promise for Asian nations. I support wholeheartedly the statement by China’s Vice President Zeng Qinghong in his keynote speech yesterday, that “promoting cooperation among Asian political parties in the 21st century, conducting exchanges as equals on the basis of mutual respect, building consensus while setting aside differences, pursuing common development by increasing cooperation, and working hard to develop diverse and vigorous Asian civilizations are our common historic responsibilities”.

By working together, finding win-win agreements, and seeking common purpose in diversity, we will maintain peace in Asia and bring unprecedented prosperity to our peoples.