Although Southeast Asia's wealthiest economy was in recession, continuing efforts must be made to integrate social policies with economic aspirations, he told an ASEAN ministerial social welfare meeting.

"The social challenges that Singapore has to manage at the start of this new century need to be managed within this economic context because of the close relationship between the economic and social spheres of our lives," Tarmugi said.

"This holistic approach requires that our social and economic policies are closely integrated and that problems are addressed, as far as we can, upstream rather than after they happen."

Declining birth rates and increased numbers of Singaporeans preferring to remain single or marry later would eventually place strains on the family nucleus, he said.

Inadequate skills to survive in the so called New Economy was another area of concern, especially since those affected were aged 45 and above with little education.

"In response, we have put in place programmes to hep these older, less well educated workers re-skill themselves for continued relevance in the restructured economy," Tarmugi said.

"Indeed, the need for re-skilling is all the more pressing given the current economic downturn."

Singapore made clear that skill upgrading was a priority when it unveiled a S$2.2 billion (US$1.2 billion) off-budget stimulus to weather the recession.

Forty million dollars was set aside in the package to help retrenched and older workers acquire skills that would keep them relevant in the new economy that Singapore has staked its future prosperity on.