He acknowledged the possibility of a genetic link to homosexuality.
"If in fact it is true, and I have asked doctors this, that you are genetically
born a homosexual - because that's the nature of the genetic random
transmission of genes - you can't help it. So why should we criminalise it?"
the Straits Times quoted Mr Lee as saying.
Under Singapore law, a man who is found to have committed an act of "gross
indecency" with another man can be jailed for up to two years, though
prosecutions are rare.
But Mr Lee - who is also a minister in the cabinet led by his son, Prime
Minister Lee Hsien Loong - said Singapore should not actively pursue
homosexuals who engage in sex.
"Let's not go around like this moral police.. ..barging into people's rooms.
That's not our business," he said.
Authorities in Singapore have routinely banned gay festivals and censored gay
films, saying homosexuality should not be advocated as a lifestyle. But,
despite the official ban on gay sex, Singapore has a thriving gay scene.