Mr Lee said although European companies may choose going into China directly, Singapore can still serve as a distribution point and base in Southeast Asia.

The Minister Mentor, who is now in Italy, told local media that Singapore can provide Italian companies a perspective on what it takes to do business in China.

But Mr Lee admitted that China's growth will pose a challenge for Singapore.

For Singapore to stay ahead, protecting intellectual property rights will be a key factor for companies.

And Mr Lee believes Singapore may only have the advantage in protecting IP for about 20 years.

In that time, China will begin safeguarding its own patents.

Mr Lee added that eventually, China may turn the tables and be on top of the R&D food chain.

For Singapore to survive, it has to move and move quickly to avoid stagnating.

He also told Italian reporters that he is worried about not having good leaders in government to steer the country.

Unlike European countries with broad based economies, EU nations can afford to change governments.

But for Singapore, Mr Lee said ministers stay on the job for at least 10 years and are able to produce results.

But if there is a sudden change of government every six months, it will sink Singapore.

The country's success has also caught the attention of other countries who are modelling themselves after Singapore.

One example is the Singapore government's investment arm, GIC or Government of Singapore Investment Corporation and Temasek Holdings.

While in Milan, Mr Lee met Roberto Formigoni, the President of the Lombardy Region.

He has left the city and is now in the capital Rome where he is scheduled to meet Italian Prime Minister Romano Prodi, the Economic and Finance Minister Tomasso Padoa-Schioppa, as well as Foreign Minister Massimo D'alema. - CNA/yy

    
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