Monday, Dec. 03, 1990

World Notes SINGAPORE

It has been 25 years since a tearful Lee Kuan Yew marked the traumatic birth of his island republic by announcing that Singapore had been expelled from the two-year-old Federation of Malaysia. Singapore's 2.7 million citizens are bracing for another wrenching departure this week as Lee, 67, retires. As Lee's successor, 49-year-old Goh Chok Tong, put it, "My greatest challenge is just to maintain standards."

Under Lee's firm and steady guidance, the port has evolved into a prosperous hub of commerce. But some Singaporeans have questioned the republic's puritanical social strictures, which include a campaign against overeating in restaurants. Meanwhile, Lee will retain considerable power as secretary- general of the ruling party and a senior minister in the Prime Minister's office.