The world will not be the same as before when the economic storm clears and Singaporeans must be prepared for challenges ahead, Singapore's President S R Nathan said on Monday.

Speaking at the opening of the second session of the 11th Parliament, Nathan said that a consensus is growing that the world is in for an extended period of slow growth.

"The problem of bad banking assets in many countries, especially the United States and Europe, will take several years to unwind." Nathan said, adding that "developing countries will be upgrading their infrastructure and workforce, and acquiring new capabilities. China and India will emerge as stronger competitors, though they will also offer new opportunities."

Nathan said that Singapore as a small state, must understand and influence the country's environment in order to enlarge the external space.

"Post crisis, the United States will remain the leading power in the world, and the key to a coherent and stable global system. But in Asia, China and India will play growing roles."

"Stable relations between the United States and China will be vital to solving many international issues, and to integrating an emerging Asia into the global community," he said.

Nathan said that Singapore's diplomacy must adjust to the new realities, therefore the country must participate actively at international forums like the United Nations and the International Monetary Fund, do the modest part in international efforts to further the common interests of nations, and work with partners in the Association of Southeast Asian Nations(ASEAN), Asia-Pacific Economic Cooperation (APEC) and other regional forums to foster regional cooperation and economic integration.

(Xinhua News Agency May 19, 2009)