Youth secretary Zulkifli Alwi said: "We find it most deplorable and regretful that Lee has again displayed utter insensitivity through his latest statement."

"This will only upset Malaysians further and his statement clearly does not bring any benefit to Singapore. The republic is not going to gain anything from it."

Meanwhile, the Peninsula Malay Students Federation (GPMS) urged Lee to retract his remarks.

GPMS secretary-general Syed Anuar Syed Mohamad, in a statement to Bernama, said Lee's inferences were baseless.

Berita Harian Mar 16 reported that Lee, in a recent dialogue with Singapore Malay/Muslim leaders, had inferred that the setting up of the International Islamic University (IIU) was racially oriented and that the majority of Chinese children went to Chinese schools and Indians to Tamil schools.

Syed Anuar said Malaysia's education system was never aimed at segregating the races.

In Malaysia, parents are free to choose which school to send their children to, he said.

Umno Youth exco member Dr Zambry Abdul Kadir said Lee's perception of the IIU was way off the mark.

"It is surprising for a person like Lee who have been invited to give talks and even advice around the world can be narrow-minded in perceiving the university which has students from 70 countries, in such a way," he said.