He said Singaporeans and investors want to see the next team of political leaders, so building up the core of the fourth generation leadership is a critical challenge.

Mr Lee added that there is no change in the total number of office holders in this reshuffle and he is keeping some of the older ministers to help out so that they can provide experience and advice, while younger ministers drive policies.

The prime minister met the Singapore media for an hour-long news conference at the Istana on Monday, March 30, to explain his rationale for reshuffling his Cabinet.

"Each step is careful, measured, but cumulatively, progressively over the years, the effect is of a substantial decisive change," he said.

Among the changes is the promotion of Mr Teo Chee Hean to the post of deputy prime minister. Despite the additional responsibility, Mr Teo will continue to be defence minister and take care of matters pertaining to the civil service.

Mr Lee said: "During this economic crisis, when we need good policies, good implementation and also good political work on the ground, I think Chee Hean can make a contribution in all three areas. I also announced that he is going to be Acting PM in my absence and there are two reasons for this.

"One, it is to show there is depth in our leadership. He is not just one person running everything, there are others making significant contributions, and it is also a signal that the younger team is in charge — we are looking ahead, moving forward."

Also being promoted is Mr Gan Kim Yong to full manpower minister.

"Gan Kim Yong has done a good job in the Manpower Ministry. I promoted him to full minister. He is in a hot seat because particularly in an economic crisis, manpower is critical.

"Looking after employment, helping the employed, working with the unions, the employers, the tripartite relationship, maintaining confidence, at the same time taking practical measures which will help and hold the line where politically difficult things have to be done.

"Kim Yong has the right combination of skills for doing this. He has asked for and I have agreed that Lee Yi Shyan will help him as minister of state, particularly to carry some of the responsibilities to cultivating the tripartite partnership," Mr Lee added.

As part of the reshuffle, Singapore now has a full-fledged woman minister, Mrs Lim Hwee Hua.

Mr Lee explained: "The basis is not gender, but merit. She’s presently fully engaged in two ministries and Raymond Lim has told her that at Transport (Ministry) she will be specifically responsible for maritime issues and also for aviation issues, and we can’t take her out from these two ministries now.

"But we will consider her to head a ministry on her own if she continues to perform well, which I’m sure she will."

The prime minister also said that while the 2006 general election was a major step in self-renewal, Singapore has not fully assembled the core of the fourth generation leadership.

The critical task now is to identify, gather and prepare more people who can make up the core group of the fourth generation of Singapore’s leaders so as to assure the country’s long-term future.

For this, Singapore needs people in their late 30s and 40s who could be put in responsible positions early.

"Make sure that they measure up and then within two election terms, they prove their worth, establish themselves to Singaporeans and be ready to take over," said PM Lee.

That is why the next general election, due by February 2012, will be crucial for the well-being of Singapore.

"It’s still some time before the next election, but we have been working hard and we have identified a fair number of people. We have not completed the process yet, so I would not like to give you any numbers. But we need to find more and we are continuing to work at it," he said.

So is the next Singapore prime minister in the Cabinet already?

"I cannot say — maybe, maybe not? But it depends on how they develop and how the dynamics work out among themselves, for them to decide who will be their leader, whom they would support as their leader. It’s not for me to decide," said Mr Lee.

Asked about his health, the prime minister said doctors have given him a good report card. He said: "My health is ok. I lost weight because my doctor ordered me to lose weight. But I am in good health.

"I have a medical check-up every year. Doctors scrutinise me, pursue all possible avenues (on) what may be wrong. So far, I am ok, but life is unpredictable. So you just have to take it, take good care and take it as it comes."

Mr Lee was also asked about the renewal process for Malay leadership.

He said even though no Malay MP was promoted this time, there is a good line-up of Malay office holders and backbenchers. In due course, if they perform well and measure up, they will be promoted.

Mr Lee also said he would continue to work hard to look for Malay professionals to enter politics.

"We know that there are more Malay professionals now... we were able to bring some of them in during the last election. I think that the Malay community, like the general Singapore community, has the same issue when young people come in.

"On one hand, they want to see talent, on the other hand, you look at him or her, and you say is he or she ready? I’m personally focusing on this. It’s not just a matter for Malay MPs or Malay ministers to look for new succession, I’m pursuing this matter too," he said.

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