SINGAPORE: Minister in Prime Minister's Office Grace Fu said the government is prepared to help traditional businesses in small and medium enterprises (SMEs) during this challenging period.

She added that the government understands that these businesses are undergoing "painful restructuring" with a reduction of foreign workers while still increasing productivity.

Ms Fu was speaking to reporters at an event to mark National Day, organised by the Singapore Chinese Chamber of Commerce & Industry on Thursday evening.

Prime Minister Lee Hsien Loong's National Day message was screened at the event.

Ms Fu also spoke about the need to help people who are making an adjustment at a time when the economy is undergoing restructuring.

She said: "Especially in the founding generation, this is a generation that really put in a lot of hard work but I think the income has not been very high, the skills have not been very high, the savings perhaps may not have been very adequate because CPF started not so long ago for us. We need to do more to help this founding generation deal with their retirement and healthcare concerns more."