SUCCESSFUL Singaporeans who have gained from society should give back something to their fellow citizens and help build a giving nation, said Prime Minister Lee Hsien Loong.

While more Singaporeans from all walks of life have been donating to charities generously and contributing their time and effort to do good works, they could do much more, he said at the opening of the National Volunteer and Philanthropy Centre's (NVPC) new premises, The Giving Place, at Central Mall on Monday evening.

He noted that the national volunteerism rate has risen from 9 per cent in 2000 to nearly 16 per cent in 2006, and nine out of 10 Singaporeans gave to charity.

Last year, donations to Institutions of a Public Character (IPCs) went up by more than 50 per cent to S$820 million.

'We are gradually becoming a giving nation, but there is potential to do much more,' said PM Lee. 'We need more Singaporeans to donate, according to their means and from their heart.'

'This is especially crucial in this era of abundant economic opportunities, yet stagnating wages at the lower end, and widening income gaps. To respond to these trends, the more successful Singaporeans must pitch in to help the weaker ones.'

'Collectively, these individual actions will make our society much more compassionate, and much more cohesive.'

Mr Lee said that every society has to take care of its people, especially the vulnerable groups. Either the state has to do it, or it needs to be done through private initiatives.

If the government were to take upon itself responsibility for all these social needs, it will have to operate a system of high taxes and transfers, like the European countries.

This, said PM Lee, is an impersonal, bureaucratic model, as help for those in need becomes a matter of social administration, not compassion; an entitlement, not something to be grateful for. It would erode the work ethic, leading to slower growth and a loss of economic vitality.

He said the older generation of immigrants who came to Singapore in search of opportunities and who went from rags to riches, took it upon themselves to give back to society and help those who came after them.

They set up charitable foundations like the Lee Foundation and Shaw Foundation. Where there were no temples or mosques, they donated and raised resources to build them. Where schools were needed, they established them to enable the next generation to benefit from the education that they themselves had missed.

The present generation has continued to uphold this tradition of philanthropic giving.

'Like the American magnates and our own forefathers, we should also encourage successful Singaporeans to deploy a significant portion of their wealth to some larger purpose which they feel committed to,' said Mr Lee.