IF THERE is any doubt that Singaporeans can think out of the box, just look at its education system, which has been ranked among the top in the world.

Minister Mentor Lee Kuan Yew gave this robust reply to Financial Times (FT) journalist John Burton when he was asked about views that Singapore was a conformist society.

Mr Lee drew his attention to Singapore's accomplishment in creating, from scratch, an education system that today is rated among the top five in the world.

'If we are stupid, we wouldn't be here,' he said.

Mr Lee was speaking at a dialogue yesterday with 300 global business leaders, government officials and academics at the Insead Leadership Summit, on the theme Asia 2020: The Limits of Growth.

For an hour, nine questions - ranging from what his regrets were to what it took to succeed as a politician - were lobbed at Mr Lee, who answered in good humour and with rapier wit at the ready.

The tone was set when he replied to Mr Burton, to laughter from the audience, saying: 'Well, this is a standard Western correspondent viewpoint.

'If we cannot think out of the box, you think you will be here, sent by the Financial Times, to throw darts at us from time to time?'

The riposte was clear.

On Wednesday, the British newspaper apologised for an article alleging nepotism in various appointments of Lee family members.

At the dialogue yesterday, Mr Burton, FT's Singapore bureau chief, quoted a businessman who felt Singapore workers are well-educated, but 'show a lack of initiative and maybe have a fear of speaking up'.

Given that Singapore wants to become a knowledge-based society - which requires people who think out of the box and challenge the system - Mr Burton asked if this posed a limit to Singapore's future growth.

Mr Lee cited an article in the latest issue of The Economist, which was based on a McKinsey report that rates education systems across the world.

'We are among the top five in the world that succeed,' he said.

Mr Lee noted the report's conclusion that the quality of the system is based not on the size of classes or its tests, but 'what is the quality of your teachers and how quickly you put things right when it goes wrong, and how do you get good quality teachers'.

In Singapore, teachers hail from the top 30 per cent tier of graduates, he added.

'Now, to be able to do that, you must be able to think for yourself because the British didn't leave us with their system, and it's not me or the Minister for Education, we have people who have gone round the world studying all education systems, including those from Britain.

'We have studied the American system, we have studied the Japanese, we've studied the Germans.

'And from all the data we have collected and learned from them, we have crafted a system, modelled a system that will suit us.'

He cited, as an example, the Nanyang Technological University, which is now among the world's top 50 universities - barely three decades after it became an English-medium institution.

Mr Burton told The Straits Times later that he had posed the question as the conference theme was on growth in Asia and he thought 'a conformist society' might limit Singapore's growth.

He said that he was not saying that Singaporeans were stupid, and recognised they were very well-educated.

'But there is a difference between being well-educated and having initiative,' said Mr Burton.

Earlier in his reply, Mr Lee said: 'I think if the Financial Times does worry about us and sincerely takes an interest in our future, I suggest getting a full McKinsey report, visit our universities.

'And maybe you don't believe in this rating but I do not believe you can stereotype us that way. If we are stupid, we wouldn't be here.'

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