The part where they said that they maintain a low foreign
exchange rate policy to benefit Singapore is pure bullshit.
It's like claiming something which is beneficial for you done in
sacrifice for another person. 
It's like you frequent this Chicken Rice stall, you like the
chicken rice because it's cheap and it taste good. Then you go tell
the stall owner that you are eating his chicken rice and making him
rich by sacrificing yourself.
If China raise the value of her RenMinBi (RMB), the direct
consequence will be a slowdown in economic growth because investors
will find that the RMB is too expensive to make a profitable
investment in China, this is especially so for export driven
industries, as a strong RMB will discourage exports.
The part about LKY supporting US presence in Singapore is a
basic international relations (also political) concept,
that no single country should have total dominance over a region or
country. That is why Asia needs another strong countervailing force
to check the might of China. Since pre-WW2, USA has
a presence in Asia and that presence has spurred industrial growth
in the region with a small level of conflict. If something has been
working so well in the past, why bother changing it with something
which is still indeterminate at this point in time.
In international relations,
a balance of power exists when there is parity or
stability between competing forces. As a term in international law for a
'just equilibrium' between the members of the family of
nations, it expresses
the doctrine intended to
prevent any one nation from becoming sufficiently strong so as to
enable it to enforce its will upon the rest.
http://en.wikipedia.org/wiki/Balance_of_power_in_international_relations
