Lee met Myanmar Prime Minister Soe Win, officials said, shortly before a scheduled session with paramount leader Senior General Than Shwe.

As the biggest investor in the former Burma, Singapore wields more clout than most of its neighbours over Yangon's recalcitrant generals, shunned by Europe and Washington for their detention of democracy icon Aung San Suu Kyi and their human rights record.

"Singapore has a close relationship with Burma, not just in investment but in other areas," said Garry Rodan, director of the Asia Research Centre at Murdoch University in Western Australia.

"If the Singapore government decides that it wants to see significant change in Burma, then that's going to pack more of a punch than another government that does not have that kind of relationship or has those close links," he said.

Lee's two-day visit came a week after Malaysian government lawmakers said Myanmar should forfeit its turn as chair of the 10-member Association of South East Asian Nations (ASEAN) in 2006 unless it took significant steps towards democracy.

Unlike Europe and the United States, which have slapped sanctions on Yangon, ASEAN has so far favoured a more conciliatory policy of "constructive engagement", although neither approach seems to have had any success.

Political analysts and diplomats expect Lee, Singapore's prime minister, and Foreign Minister George Yeo to raise the sensitive issue of ASEAN leadership during their trip.

"Normally ASEAN leaders avoid interfering in each other's domestic affairs. However, I think Lee and Yeo will reveal their feelings on the impact of Myanmar's domestic situation on ASEAN," said an Asian diplomat in Yangon who declined to be identified.

PATIENCE WEARING THIN

After drawing in Myanmar from the diplomatic cold in the late 1990s, ASEAN's frustration at the lack of progress towards civilian rule appears to be growing.

"I think certain ASEAN countries have been very patient... not wanting to interfere, but are looking at this situation in Myanmar," UN special envoy to Myanmar Razali Ismail told reporters in Malaysia.

Some members fear Myanmar's inclusion in their club is damaging relations with Europe and the United States at a time when the region is struggling to staunch a loss of foreign investment to China.

"Singapore may try to make it known to the leadership there that it's best to take a sickie next year and not to assume the presidency in mid-2006," said Song Seng Wun, economist at stockbrokers GK Goh in Singapore, using slang for sick leave.

Analysts also expect the group to cast aside its traditional aversion to meddling in a member's internal affairs at a meeting of foreign ministers in Cebu, the Philippines, on April 9.

"Some hard messages may very well have to be put across, because what happens in Myanmar will affect ASEAN as a whole," a Singapore Foreign Ministry spokesman said.

With US$1.57 billion sunk into 72 projects, Singapore tops the list of the 25 foreign investor countries in Myanmar. According to official Myanmar data, Singapore is the largest exporter to Myanmar and its second-largest trading partner after Thailand.

ASEAN comprises Brunei, Cambodia, Thailand, Laos, Malaysia, Myanmar, Indonesia, Vietnam, Singapore and the Philippines.

(Additional reporting by Jason Szep in Singapore)

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