Singapore's Prime Minister Lee Hsien Loong warned on Sunday night that the recent turbulence in global financial markets may affect economies in the United States, Europe and Asia in the coming three to six months.

The external environment is favorable, and there is optimism all over Asia, but the recent turbulence in global financial markets may affect economies in the United States, Europe and also Asia over the next three to six months, Lee said this in his National Day Rally speech.

Lee stressed that the fundamentals for Asia remain strong.

As for the Association of Southeast Asian Nations (ASEAN), Lee noted that the 10-member grouping are currently benefiting from a strong Asia and high-energy prices.

Singapore has taken over the ASEAN Chairmanship, and will focus on making ASEAN stronger and more integrated, the premier said, adding that this is so that the grouping can keep pace with China and India, and not be left behind.

The premier also said that Singaporeans are now all over the world, and that's the way to thrive in a globalized world.

He stressed the need to secure the home base from which to venture forth and seize opportunities around the state.

To achieve this goal, he said, the government is implementing changes to make the country's economy vibrant and competitive, and to strengthen social cohesion.

The premier also promised to narrow the income gap between different groups and help re-employ older workers as part of efforts to deal with the aging population.