"Singapore offers itself as a base from which analysts and fund managers can follow the region dispassionately, with neither euphoria nor panic. They will be well positioned to detect the turnabout...," Deputy prime minister Lee Hsien Loong told fund managers and investors at an investment conference here.

Lee, who is also head of the Monetary Authority of Singapore (MAS), said Singapore would maintain its fundamental approach of relying on market forces, allowing free capital flows, encouraging foreign investments and plugging into the global economy to survive the regional crisis.

He added Singapore's "different approach" would be noted by analysts and investors and reflected in the country's credit ratings and assessments.

In his speech, Lee gave an outline of the approaches taken byother Asian economies battered by the crisis, among them Thailand, South Korea, Indonesia, Malaysia and Hong Kong.

Lee said neighbouring Malaysia's situation contrasts with that of other countries.

He said Malaysia, which initially followed orthodox market-oriented policies, had rejected this "orthodox prescription."

"In recent weeks, the Malaysian government has decisively rejected this orthodox prescription, especially after prime minister Mahathir Mohamad dismissed deputy prime Minister Anwar Ibrahim and took over responsibility for the economy."

Lee said Malaysian central bank Negara's actions to impose stringent capital controls, lower interest rates and bank reserve requirements and ease classifications for non-performing loans (NPLs) were indications the government was acting in line with Mahathir's convictions.

He said Malaysia has set out to prove to the world "that it will succeed in restoring its economy on its own, and in its own way."

Lee said Thailand and South Korea were twocountries following the IMF prescriptions most closely but the countries' reform and restructuring process would be "gradual and painful".

He said Singapore and Hong Kong were traditionally the two freest markets in the region, and Hong Kong's unprecedented intervention in the market to force up share prices was a clear indication of the country's determination to defend its currency peg.

Lee added that apart from adhering to its free-market policies, Singapore would also cut business costs decisively and comprehensively, and carry out economic restructuring to enhance its effectiveness as a regional and international business hub.