2ND LD: Lee Hsien Loong sworn in as Singapore's prime minister

Asian Political News, August 16, 2004

SINGAPORE, Aug. 12 Kyodo

(EDS: ADDING QUOTES IN 3RD, 4TH GRAPHS)

Lee Hsien Loong, elder son of the founding father of modern Singapore, Lee Kuan Yew, became the third prime minister of the small but affluent city state Thursday, replacing Goh Chok Tong, who had been at the helm for the past 14 years.

Lee, 52, took the oath of office and was appointed by President S.R. Nathan to become Singapore's new leader in a ceremony on the lawns of the Istana, the presidential palace, watched by some 1,400 guests.

''This political transition is not just a change of prime ministers or of a Cabinet,'' Lee said in a speech at the ceremony. ''It is a generational change for Singapore, a shift to the post-independence generation in a post-Cold War world.''

''Our people should feel free to express diverse views, pursue unconventional ideas, or simply be different, so ours must be an open and inclusive Singapore,'' he said.

Lee also said he wanted to build a vibrant and competitive economy ''to create good jobs and improve the lives of all our citizens.''

His administration would deal with complex and sensitive issues such as the aging population, immigration, and ''encouraging more Singaporeans to get married and have more babies,'' he said.

Members of his Cabinet, including his father, whom he has appointed as an adviser, and Goh, who will become senior minister, also took their oaths at the ceremony.

Lee will remain finance minister, a post he has held since 2001, but relinquish the chairmanship of the Monetary Authority of Singapore, the country's central bank.

The power transition, which is only the second for Singapore since independence in 1965, is taking place at a time when Singapore's economy is recovering from a recent slump, with the government projecting up to 9 percent growth this year.

However, there are concerns among some quarters that this year's expected sharp growth could be only a blip. The country is also facing fierce competition from emerging economies such as China, which has been sucking investments and jobs, India, and also neighboring Southeast Asian countries like Thailand and Malaysia.

The economic recovery has not really been felt by Singaporeans, with unemployment remaining high at 4.5 percent.

The Business Times newspaper said in an editorial Wednesday that the current pace of economic growth is unlikely to be sustained.

But expectations are high that Lee, with his pedigree as the son of the first prime minister who transformed the country from a third-world backwater to one of Asia's most successful economies, and his strong track record in economic and financial restructuring, would be able to wield the magic wand for Singapore's economic survival.

The Cambridge- and Harvard-trained Lee unveiled his Cabinet on Tuesday which reflects continuity and stability. Most of the members of his team are holdovers from Goh's Cabinet.

There is also no indication who his heir-apparent might be as his two deputies -- Law Minister S. Jayakumar and Tony Tan, former deputy prime minister in Goh's Cabinet, are both already in their 60s.

During his speech, Lee said leadership succession would be one of his top priorities. ''The government will search for younger Singaporeans in their 30s and 40s...to prepare for leadership succession at all levels,'' he said.

Some political analysts say Lee is likely to consolidate his position before calling for the next general election next year or in 2006 before introducing new faces into his cabinet.

Lee, who entered politics in 1984 at the age of 32, has risen rapidly through the ranks, being appointed junior minister in 1985 and deputy prime minister in 1990, when Goh took over the premiership.

Compared with the affable Goh, Lee is seen by the public as tough, conservative and uncompromising like his father. But in recent months, the local media have tried to dispel this image, with television news showing him smiling and shaking hands and chatting with ordinary citizens. On Thursday, the Straits Times newspaper splashed pages of stories relating anecdotes from people who knew his softer side.

Unlike Goh, who came from a more humble background, the Lee family is also seen as powerful and intellectually intimidating. Both his parents graduated with first-class honors from Cambridge University, where they courted and married.

Lee also obtained first-class honors in mathematics from Cambridge in only two instead of the usual three years. His younger brother, Lee Hsien Yang, graduated with first-class honors in engineering from the same university and now heads Singapore Telecommunications, one of Asia's biggest telecommunications companies.