The paper explores the question of whether modern states, especially in Asia, need philosophical or ‘ideological’ bases for their founding and continuation. It takes as its case study Singapore’s Lee Kuan Yew, who appeared to succeed in founding a modern prosperous state that avoided grand philosophical foundations in favour of ‘performance’ – security, stability and prosperity. The paper argues that a closer look at Lee’s conception of leadership reveals a more complex picture. Lee’s concern for the future prosperity of Singapore, and therefore his legacy, meant that he needed to secure what he calls ‘idealistic leadership’ that was essential yet lacking in Singapore. His recourse to ‘Asian values’, and especially Confucianism, was intended to provide such idealistic leadership. The lack of success of his Confucian initiatives reveals the inherent problems of Confucianism as a moral foundation for modern legitimacy and state-building, and the limits of performance for founding of modern nation-states.