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Singapore founding PM Lee Kuan Yew once warned Australia could be 'white trash' of Asia
By Girish Sawlani, Brendan Trembath ,
There were protests when Singapore's Lee Kuan Yew (right) was awarded an honorary doctorate at ANU in 2007.(AAP: Alan Porritt)
He made the comments when Australia was experiencing inflationary pressures and high unemployment, and the country took notice.
"That was way back in the early '80s, when it looked as though ... we were unable to grasp the nettle of financial reform," Emeritus Professor James Cotton from the University of New South Wales told PM.
"We had a fixed exchange rate in those days and there were all kinds of rigidities in the market."
Australia's then-prime minister Bob Hawke said in 1987 that Mr Lee's comments were "not an overstatement".
He went on to sign the historic accord between Labor and the Australian Council of Trade Unions (ACTU) to ensure moderate wage rises in exchange for restrained price increases.
Professor Cotton said Mr Lee was pointing at a possible future state for Australia.
"Well, of course, the Hawke-Keating reforms created in Australia a platform for quite a different kind of economic performance, but he could see that problem," he said.
The man who transformed Singapore
Mr Lee, who died on Monday after spending several weeks in a critical condition, had established much closer ties with Australia's political leaders by the 1990s, including former prime minister Paul Keating, whom he recognised for his major policy shift towards Asia.
Under his leadership, Singapore was transformed from a former British colony with few natural resources into one of the most prosperous nations in the world.
But he was criticised at home and abroad for his iron-fisted control over opposition figures and the media.
Associate Professor Len Perry, from the University of Technology Sydney, said while Singapore has enjoyed high living standards, it has not been a place of political freedom.
"Singapore's per capita GDP [gross domestic product], basically its material living standards per person, is significantly greater than Australia's — maybe 30 per cent greater than Australia's — and it's greater than America's," he said.
"If you're an opposition politician, then you still have to be very careful as to what you say because you're likely to be sued."
There were protests in Canberra in 2007 when Mr Lee was awarded an honorary doctorate at the Australian National University.
But by then, he said he had changed his view of Australia.
"There are some words sometimes that .... all said in the heat of an argument, which perhaps at that time was warranted," Mr Lee said when asked if he still stood by his earlier sentiment.
"[But] ... you have changed."
He also acknowledged Australia's sole commitment to East Timor, during the tumultuous period that preceded its independence.
"Australian boots went on the ground despite serious warnings of casualties," Mr Lee said.
"There were some wild statements made by Indonesian and militia leaders and it showed a certain firmness, a certain willingness to see the thing through.
"I've always held that in a moment of crisis, you would stand up and today Singapore's military stands in alliance with Australia."
'The Lee family shop'
Mr Lee was a much loved figure in Singapore, but Professor Cotton said his legacy remained a mixed one.
"There's absolutely no question that he and his people dominate the show completely," he said.
"I mean, ask any Singapore taxi driver — the standard expression that they have for Singapore is 'Lee Jiating dian', which means 'the Lee family shop'.
"They'll use that expression and they'll usually burst into laughter, because it captures the reality of Singapore more than anything else."
Singaporean radio stations suspended regular coverage to run rolling tributes for Mr Lee.
Azlina Azman, a Singaporean living in Melbourne, said Mr Lee's leadership ability was his strength.
"All you need to do is look around Singapore. His leadership, beliefs and values are instilled in all the parts of Singapore," she said.
"The tears flowing from Singaporeans, may it be away or at home, is a testament of how he has touched our lives."
Australia is Singapore's fourth largest destination for accrued foreign investment and both countries signed a free trade deal more than a decade ago.
The most visible evidence of this is the Singtel-owned Optus network and energy firm Ausnet, which is more than 30 per cent owned by the government subsidiary Singapore Power.
