(Fixes transposed words in 4th paragraph)
SINGAPORE, Oct 10 (Reuters) - Economic mismanagement by Myanmar's ruling generals means they cannot survive indefinitely and the population was always likely to revolt in the face of excesses by the junta, Singapore senior statesman Lee Kuan Yew was quoted on Wednesday as saying.
But in an interview reprinted in Singapore's Straits Times newspaper, Lee said any solution to the political impasse in Myanmar would have to include the military, as they alone had the administrative ability to hold the country together.
"These are rather dumb generals when it comes to the economy," Lee, 84, told syndicated U.S. columnist Tom Plate in an interview on Sep 27.
"How can they so manage the economy and reach this stage when the country has so many natural resources?"
Lee, who was Singapore's first Prime Minister at independence in 1965, stepped down as premier in 1990 but remains influential as its "minister mentor".
He gave the interview at the height of a crackdown by Myanmar's military rulers after streets protests led by monks saw tens of thousands of people take to the streets to protest against military rule and economic hardships.
At independence in 1948, Myanmar was blessed with vast natural resources and wealthier on almost every economic measure compared to tiny Singapore.
But independent economists say decades of mismanagement by 45 years of military rule have left Myanmar with negligible growth, rampant inflation and a currency, the kyat, considered worthless outside the country.
Lee said Myanmar's leaders had pushed a "hungry and impoverished people to revolt" on wasteful projects and also by flaunting their wealth.
"...they decided to close down the government in Yangon and go into this Pyinmana, or whatever the place is called, where there's nothing," he said, referring to the military's decision to relocate the capital from Yangon to Naypyidaw, newly carved out of the jungle last year.
"...they are putting up expensive buildings for themselves and a golf course...".
Lee also made reference to a bootleg video of the wedding of a daughter of Myanmar's leader, Tan Shwe, in which the bride is showered with cash and jewellery.
"...and the top general had a lavish wedding for his daughter which was then out on YouTube -- the daughter was like a Christmas tree," he said.
Singapore is one of Myanmar's biggest foreign investors and bilateral trade reached S$1 billion ($679.3 million) last year, but in the interview, Lee rued the risk.
"I had advised several of our hoteliers to set up hotels there. They have sunk in millions of dollars there, and now their hotels are empty," Lee said.
"Why they believe they can keep their country cut off from the rest of the world like this, indefinitely, I cannot understand."
($1=1.472 Singapore Dollar)
