These measures include raising the qualifying income ceiling for HDB home buyers, increasing the number of places for Singaporeans at local universities, making healthcare more affordable and tightening the hiring of foreign workers.
In his first National Day Rally speech since the General Election in May, Mr Lee said the thrust of the government's policies will be a Singaporean-first approach, even as the country stays open to the world.
He noted concerns over rising home prices, healthcare costs and the inflow of foreigners - all hot button issues at the recent elections.
Mr Lee said: "I can fully understand and empathise with concerns because it has been a difficult ride, bumpy, stormy and causing anxiety from time to time but we are tackling these problems - building more flats, improving public transport, managing inflow of foreign workers and immigrants.
"It will take a while to solve these problems because they are big and complicated issues, but we are heading in the right direction and things will get better. So please be patient."
On housing, the prime minister made the commitment to keep housing available and affordable for Singaporeans.
The government will raise the qualifying income ceilings of households for HDB's Build-To-Order (BTO) flats from the current S$8,000 to S$10,000, and for Executive Condominiums to S$12,000 from S$10,000 currently.
This means more families can now buy homes directly from HDB instead of buying them on the resale market or from private developers.
HDB will also build another 25,000 BTO flats next year to meet demand and keep prices of new flats stable and affordable. It will also expand the pool of rental flats to ease the waiting time for needy Singaporeans who require rental units.
On education, Prime Minister Lee said the number of university places for local students will be increased by 2,000 in four years, raising the total number to 14,000 by 2015.
Addressing concerns that foreigners are taking away jobs from Singaporeans, Mr Lee said the government will tighten rules on the employment of middle-level foreign workers.
These workers earn at least S$2,800 a month and compete directly with younger Singaporean executives.
The government will raise the salary thresholds for Employment Passes and tighten educational qualifications.
Mr Lee said: "I should caution you on one thing - just because we are tightening on foreign workers does not mean Singaporeans will automatically get better jobs or higher pay because the competition isn't just the foreign workers here. You are competing with workers all over the world."
He said workers have to rise above the tidal wave of hungry skilled labour and develop new expertise.
"But we must always stay open to the world. This has attracted global winners to invest here, with diverse teams, creating jobs and prosperity for Singaporeans," Mr Lee added.
The government will also improve its social safety net to ensure no one falls through the cracks, for example making outpatient medical treatment more affordable for the elderly and those with chronic ailments.
Families with special-needs children can also look forward to greater support from the government.
While the government makes policy adjustments, Mr Lee stressed that Singapore's basic strategic directions must remain as they are key to retaining investor confidence.
He said the government needs to get both its politics and policies right by addressing the stresses and strains of the population, while keeping track and responding to external challenges.
This is the way to engage Singaporeans and build the country together, he added.
Mr Lee acknowledged that the recent elections saw more diverse views expressed strongly. However, not all views were divisive. The prime minister noted there were many concerned citizens who were critical but had thoughtful viewpoints.
He is encouraged to see Singaporeans take the lead in initiatives, such as suggesting ways to create a green spine along the disused KTM railway land.
But not every request to the government can be fulfilled.
Mr Lee said: "Even after discussion, we won't always be able to reach agreement or consensus but having heard all views, the government will have to do what it considers right for the country and then take responsibility for its decision."
The prime minister rallied Singaporeans to come together, despite their differences, for the common good of the country.
- CNA/al
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