The city state of four million people is facing its worst downturn in more than 30 years, putting jobs and the state of the trade-driven economy high on every party's agenda.

The ruling People's Action Party (PAP) has little chance of losing more than a handful of seats in an expanded 84-seat parliament but is taking nothing for granted by courting voters with its 36-year record, recent spending and 25 new candidates.

The manifesto of the four-party Singapore Democratic Alliance (SDA) called for a welfare system for the unemployed, a cap on public housing costs, a freeze on mortgage loan repayments and a reduction or abolition of various government charges.

Some 86 percent of Singaporeans live in state-built housing. The government traditionally has shunned welfare and other benefits in favour of a "pay your way" philosophy.

"The SDA believes it is important that the government show that it cares for the people of Singapore," veteran politician and SDA chairman Chiam See Tong told a news conference.

Global security and repositioning Singapore for the future are the PAP's top concerns but, with opposition parties hammering away at the jobs issue, the ruling party is also trying to show empathy with the ordinary person.

"I know you are worried about your job and your family's future. I understand your concerns," Prime Minister Goh Chok Tong wrote in a letter to voters.

After growing 9.9 percent last year, Singapore's economy was in recession even before the fallout from the US attacks added more misery to shrinking electronics exports and downturns hitting key trading partners.

DASHING FOR THE CASH

Reflecting the economic woes, thousands of people flocked to public pension offices to cash in their New Singapore Shares -- a key part of an S$11.3 billion (US$6.2 billion) stimulus package unveiled a week before the election was called.

The shares -- effectively a handout of S$200 to S$1,700 to some two million working adults and senior citizens -- can be kept until 2007, yielding a dividend of three percent per year and more if the economy grows.

"Old people need the money now," one elderly woman said. "We need to go to the doctor."

The Worker's Party, a key opposition group which declined to join the alliance, hopes to strike a nerve with its focus on the "new poor" as citizens accustomed to one of the world's highest standards of living feel the pinch of recession.

The 22 opposition parties often lack cash, candidates and a coherent platform to mount a credible challenge to a government that has delivered the goods since independence in 1965.

The SDA, launched in July, marks the first time members of the opposition have tried to campaign under a common banner. The parties again agreed to avoid three-way fights.

It groups the Singapore People's Party, National Solidarity Party, Singapore Justice Party and the Pertubohan Kebangsaan Melayu Singapura (Singapore Malay National Organisation).

All sides have lost one of the most fertile campaigning grounds as lunchtime rallies in the central business area have been cancelled due to security concerns after the US attacks.