He made the point at a session at the World Economic Forum in Davos, Switzerland.
Prime Minister Lee Hsien Loong said the rapid changes in Singapore society had caused certain unease and disquiet among some segments of the population, and it showed at the polls last May.
As to whether one can expect significant political reform in the next five years in Singapore, Mr Lee said the situation will continue to change, and Singapore must find its own way forward.
"It is not so simple as to say if we have more political parties we will have a perfectly functioning government. You need more openness, you need more engagement. At the same time you need people to pay more attention to what is happening in their lives and think about what is happening to their country and to us as Singaporeans. This calls for effort on both parts - Singaporeans and government," said Mr Lee.
Rising inequality in the world, a hot topic at the meetings here in Davos, was also raised during the interview with Mr Lee. And he said Singapore tackles the issue in multiple ways.
That includes making education, healthcare and public housing more accessible to the people, as well as the Workfare scheme to help supplement wages.
"We make sure that everybody starts with some chips in life, you don't start with zero. If you're poor in Singapore, it's no fun, but I think you're less badly off than in any other country in the world, including in the US," said Mr Lee.
Mr Lee was also asked why the ministerial pay was revised recently.
He said that ministers' salaries became an issue at the 2011 general election and he had appointed an independent committee to look into it after the election.
"They decided that the principles were sound - you have to pay competitively - but they recommended a different benchmark and a different number and we accepted it. I don't think it will be the last word on the matter but it is a very difficult issue because it is important that we get the right quality of people into government," said Mr Lee.
There were also some light moments during the interview, where Mr Lee was asked about following in the footsteps of Mr Lee Kuan Yew and what it is like to have that legacy.
"I don't know I have never not had it. (laughter) It's tough enough but you have to live with it," said Mr Lee.
And was Mr Lee Kuan Yew a strict disciplinarian?
"He had expectations... but he left me to do my own thing, he didn't push me into this, and neither would it have worked had he done so. I had to make up my mind whether I wanted to go this way," said Mr Lee.
Similarly, Mr Lee said his children will have to make up their own minds about going into politics.
But he said the odds are not on it at the moment.
- CNA/cc
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