Television footage showed the 64-year-old leader, the son of late founding prime minister Lee Kuan Yew, being assited off the stage, shocking his live television audience.
"PM Lee took ill while speaking at the National Day Rally. The medical team is attending to him right now. They assess that his condition is not serious," his office said in a statement.
"I've never had so many doctors look at me all at once. They think I'm all right but I'm going to have a full check-up after this," Lee said.
He Prime Minister's Office said Lee was feeling unsteady because of prolonged standing, heat and dehydration during the rally speech.
More From This Section
"His heart is fine and he did not have a stroke," said the PMO.
Lee took a short rest and resumed the rally.
Lee underwent surgery for prostate cancer last year and has received the all-clear from doctors. He survived a bout of lymphoma, a form of cancer, in 1992.
Lee has been in power since 2004.