"He has not given any solution to the current economic problems," opposition MP Chiam See Tong said in a press release, adding Goh appeared to be making an election speech instead.

Singapore must hold general elections within 12 months, but polls are expected well ahead of the deadline. The island has slipped into a recession as a result of the US slowdown and weak global electronics demand.

Goh spelled out his political and economic vision on Sunday night in a televised speech seen by critics as the unofficial opening salvo of the campaign to return the dominant People's Action Party (PAP) to power.

Chiam, chairman of the new Singapore Democratic Alliance, was criticised by Goh for proposing that Singapore use some of its huge reserves to prop up the economy.

"What he is arguing for is for us to slowly kill the goose which gives us golden eggs," said Goh, who reiterated he would not dip into the reserves of US$77 billion.

In his statement, Chiam said: "The PAP government has only drawn attention of the people away from the current economic problems and towards a future scenario... (which) looks very attractive.

"But we doubt the sincerity of the PAP government in executing it," Chiam said.

During the speech, the prime minister also encouraged Singaporeans to think creatively as part of the "New Singapore" strategy.

But opposition parties said the call for non-conformist thinking did not change the political climate.

In his speech, Goh said he preferred to ease up slowly on political freedom and warned that critics should always expect a rebuttal if they attack the government.

Think Centre, an activist group promoting freedom of expression, was singled out by Goh for its "one-sided" presentation of articles and views.

In response, the group said in a press release that it was also "pro-Singapore" and did not see the PAP government or any political party as an opponent.

"Think Centre has always adopted a multi-partisan approach", said its executive director Sinapan Samydorai, adding that its Internet website covered alternative views that complemented the local media, "which can be construed as 'one-sided' too".

Think Centre asserted it did not make "mindless criticisms" and had no regrets "if our independent views... have been misinterpreted to be simply critical of the government".

The PAP has won every election since the former British colony gained independence in 1965.

Goh's announcement of the planned issuance of "New Singapore" shares which can be swapped for cash by all citizens has also been panned as a PAP ploy to curry favour prior to the elections.

"It's an election year. Of course they are going to have this just to get votes," Chee Soon Juan, secretary-general of the opposition Singapore Democratic Party, said August 20.

Chee said more had to be done to help poorer people survive the downturn that is expected to cost 20,000 jobs by year-end.