Advocating closer integration among Singapore's races in a meeting with representatives of Singapore's Malay Muslim community, Mr Lee said the island republic had avoided "separate communalised groups" as in Malaysia, where Malay, Chinese and Indian students studied mainly in separate schools and kept to their own ethnic groups in universities.

Mr Lee was at first criticised for making unfair and insensitive comments. But Education Minister Musa Mohamed acknowledged that the Malaysian system, which segregates Malay, Chinese and Indian students, had disrupted attempts to foster unity among Malaysians. He linked this problem to the recent racial clashes in the Old Klang area of Kuala Lumpur.

"Lee's statement on our education has some truth as currently 90 per cent of Chinese students are in national-type Chinese schools, while more than 65 per cent of the Indian students are in national-type Tamil [language] schools," he said.

Mr Musa said that if Malaysia did not change the system, racial unity would "continue to deteriorate and future attempts to create a united Malaysia would be tougher" because the students would have become adults and it would be too late.

He added that once the students grew up they preferred to mix with their own race, leading to them "not understanding and respecting the other races' religion and culture".

Mr Musa said most of the people involved in the Old Klang fighting were youths.

"This would not have happened if understanding among the races in the area had been created at an earlier stage," he said.

Mr Musa added that with the Vision School system proposed by the government, the importance of all races living in unity could be nurtured at a young age so that children of different races, religions and beliefs would respect one another and live in peace and harmony.

Under the scheme, Malay, Chinese and Tamil schools would have the same compound, where children of the three races would play and eat together when not studying in segregated classrooms.

Chinese educationists have expressed concern that Chinese schools might lose their characteristic identity under the system.

However, a Straits Times report March 19 from Kota Baru said a top Umno leader defended Malaysia's communal-based education system, saying it reflects the democratic practices in the country, with parents free to send their children to Malay, Chinese or Tamil schools.

The Mar 18 comment by Umno vice-president Tan Sri Muhammad Muhamad Taib contradicted that of Education Minister Tan Sri Musa Mohamad, who had agreed with Senior Minister Lee Kuan Yew's recent observations that Malaysia's education system contributed to communalism.