'We've put up certain ideas,' he said here on Tuesday. 'They're considering it.'

The exercise will lead to more transparency on the part of the Government of Singapore Investment Corporation (GIC), said Mr Lee who chairs the GIC.

Speaking to the Singapore media on Tuesday to wrap up his week-long trip to Saudi Arabia, Mr Lee said that whether the exercise 'would work and make the Chinese and others also be as open, that's another question.'

'But we're prepared to go this far - we will not disclose how much we invest in each particular sector because that's sensitive financial information...'

'But we're prepared to say this is what we're doing in this sector and that sector, and so on.'

Asked if GIC will become more transparent as a result, he said: 'Yes, but we're not going to disclose just how much year by year we make or we lose because that's none of their business. What they want to know is are we manipulating the market.'

Last December, GIC chairman Tony Tan suggested that Singapore formulate a set of principles and best practices for SWFs to follow.

It came amid growing concerns about SWFs, which have ballooned in size and influence as commodity prices soared.

As a result, the developed world is pushing for IMF to set some guidelines for SWFs, many of which are shrouded in secrecy.

Turning to the current stock market turmoil, Mr Lee said it presents 'a magnificent opportunity' for countries with reserves to acquire equity in companies.

At an earlier conference with business leaders and government officials in Riyadh, he was asked how Saudi Arabia can sharpen its economic competitiveness.

One way is for it to invest its reserves judiciously, he replied.

'With the collapse of the international stock market, this may be a magnificant opportunity to accquire non-controlling quantities of equity in some of the world's biggest corporates with worldwide franchise which are bound to recover by next cycle, and you're invested in very long term,' said Mr Lee, speaking a day after the global stock markets went into a tailspin.

He acknowledged the concerns in the West over SWFs.

'I tell them, you don't worry about Singapore - ours come from the sweat of brow, it's finite,' said MM Lee, pointing out that this is different from the funds China, Russia, Saudi Arabia and other oil-rich countries have.

'Swiss people are upset, why should Singaporeans buy UBS, or Temasek buy (Merril) Lynch.'

'We are passive investors. If we're capable, we'd be running a merger and acquisition, but we're not, we don?t have a vast talent pool, so we say I'll join you, you'll make the money for me, I'd just watch how you do it, and I'd be learning over time.'

SWFs sponsored by China, Singapore, Kuwait and Abu Dhabi have injected more than US$40 billion in fresh capital into some of the world's largest banks hit by the meltdown in the US subprime mortgage market. Singapore for instance, had - through GIC and Temasek Holdings - recently acquired stakes in UBS, Citigroup and Merrill Lynch.

The trend has led to concerns of excessive foreign influence, with US presidential candidate Hillary Clinton for instance lamenting that the US economy is now 'on sale'.

On whether Singapore should brace itself for nationalistic fervour on this issue, Mr Lee said: 'We've already had some. We'll have a bit more. But we are little pygmies operating in a world where big juggernauts are coming in. We're driving little Toyotas against huge earth-moving equipment and we better stay at the safe side of the road.'

He said of Mrs Clinton: 'She's in an election mode. Just take it as electioneering. Whoever becomes President has to face reality and the facts.'