By Jeremy Au Yong, Political Correspondent

PREVIOUSLY Western-centric organisations like the World Bank need to make fundamental adjustments to remain relevant and ensure stability in the post-crisis world, Minister Mentor Lee Kuan Yew says.

Speaking at the Visa Payments Forum last night, he said that changes were needed in particular to give more say to emerging countries, in particular China, India, Brazil and Russia.

Mr Lee was responding to a question on the future of the World Bank and the International Monetary Fund.

Excerpts from dialogue with MM Lee

RISK OF PROTECTIONISM

'It's inevitable that there will be this kind of political adjustments, if nothing to placate their domestic electorate... (United States President Barack Obama) during his election campaign (last year) was forced to take an anti-outsourcing and anti-free trade agreement stand, as a result of which the Korean-US FTA was stagnant in Congress. (The FTA has yet to be passed.)

All this means that the Koreans are investing and trading more with China. And the Chinese inroads into East Asia just grow faster and bigger. If you carry on like this, by the time America recovers its morale, you may find that it's very difficult to recover your markets. You've lost market share.'

MM Lee, when asked whether the rising momentum for trade protectionism will continue

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