And while he acknowledged that they would bring some discomfort to Singaporeans, the country must integrate them into the society or face problems down the road.

Mr Lee said he was reminded of Singapore's racial integration after witnessing the segregation in Bahrain between its majority Shi'ite and minority Sunni Muslim populations.

While the Sunni Muslims rule the kingdom, some 60 per cent of its population are Shi'ite Muslims and they complain of discrimination.

Mr Lee said that Bahrain Crown Prince Shaikh Salman Hamad Al-Khalifa had taken him to a Shi'ite area on Thursday and he saw the people flying the Shi'ite black flags.

'Which really brings us back to the kind of policies we have followed,' he said, referring to Singapore.

'If we had not integrated our communities and given everybody the same chances - housing, health, schooling for the future and equal job opportunities depending on ability and performance - today we will have a very different Singapore and we will be facing the same problems (as Bahrain).

'So those who say 'let's forget about race quotas in housing estates, let's go back to the old way' - I think they have not understood the problems a multiracial, multi-religious society faces.

'When we give the National Pledge and everybody says 'We the citizens of Singapore, regardless of race, language or religion', it must ring true. It cannot be just a shibboleth; so many words to dress up problems underneath. If it doesn't ring true, then we are going to have problems.'

This integration cannot let up with the new immigrants arriving in Singapore, he stressed.

Even though the new Indian and Chinese immigrants are not the same as the Indian and Chinese Singaporeans, he was optimistic that they would, over time, adapt, learn English and gradually assimilate.

'They will go into the English language - they come to Singapore because of the English language. They want their children to master the English language, so that means they will gradually change and become Singaporeans,' he said.

His comments came in the wake of recent rumblings among Singaporeans that the new foreigners are unable, or willing, to speak English.

He said that the progress of each country is dependent on the number of talented people it has - both indigenous and immigrants.

Singapore is losing talent and so it needs to attract more.

He cited a Bahraini girl he met here whose mother was a Singaporean and father, a Bahraini. A top student at Yale University, she returns regularly to Singapore, said Mr Lee.

'So it's a mobile world in which our attractiveness as a society will determine our future. If we are unattractive as a society, economically stagnant or slothful, then we are out of this game of attracting talent,' he said.

'For the time being, we are on top of the game, we are attracting more talent than we are losing, and that's because Singaporeans have been wise enough.'

He stressed that when the Government talks about increasing the country's population, it is referring to the top talent and not the labourers.

'At the lower end, the work permit holders who do the heavy and hard jobs, we've got enough of our own...So when we talk about increasing numbers, we are increasing numbers only at the top end.'

While he understood that Singaporeans are reluctant to have foreign workers near their homes, he said the workers are the ones who will create jobs for Singaporeans and vibrancy for the city.

'So we are building dormitories next to cemeteries. But we have a limited number of cemeteries!' he said with a laugh.

'But if we don't have them, who is going to build all the IRs (integrated resorts), and the reconfiguration of our hotels and the Formula One barricades, etc?'

Mr Lee flew home yesterday, ending a week-long tour of Dubai, Saudi Arabia and Bahrain.

shpeh@sph.com.sg