Why was a soft dictatorship needed?

Not everything can be solved with democracy. Sometimes, especially in dire circumstances (such as Singapore before Lee Kuan Yew) an authoritative approach is needed. History has proven that in times of war (or when pivot is needed), the leaders that are most fit are more on the autocratic side and in peaceful times it is the opposite. In order for Singapore's reforms to become reality, two things were needed: a clear vision and firm hands to executed it. Lee Kuan Yew had both.