Addressing more than 1,500 unionists, workers and employers at the May Day Rally, Mr Lee said he had lunch with union leaders last week to find out what concerned them.
One of the issues is the cost of living particularly healthcare costs.
Unions are also worried that CPF savings may not be enough especially with inflation.
Mr Lee assured those who attended the rally that the government will continue to monitor inflation very closely to see if more needs to be done.
Another area of concern is of low wage workers whose wages are not keeping up with the rest.
Mr Lee said the feeling among unionists is that those earning low-wages are stuck no matter how hard they try to upgrade.
Another concern is the ageing workforce.
PM Lee said these are all real issues that the tripartite partners must address together.
He said on its part the government will implement several strategies.
The first is to keep Singapore open, embrace the world, welcome new ideas and explore new opportunities.
Mr Lee said that's how Singapore has become successful and has competed against bigger countries and held its own and more.
The government has also improved the lives of the people and secured a bright future here for their children.
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