Ther government intended moves comes after a popular bakery chain Breadtalk sold a line of buns called "Lee bu kai ni," loosely translated as "can't bear to leave you," playing on Lee's surname in Mandarin.
Minister for Culture, Community and Youth, Lawrence Wong, said the move was in response to concerns from the public that companies or individuals are trying to profit off Lee's name and image.
The government shares this concern, he added.
He is credited for developing the former British colony into a financial prosperous global city state.
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Speaking to reporters on the sidelines of a community event, Wong said that the Government is in the early stages of studying how to protect Lee's name and image.
It intends either to expand the Singapore Arms and Flag and National Anthem Act (SAFNA), which regulates the use of these national symbols, to cover Lee's name and image, or to write a new law. SAFNA does not currently cover names.
The list of names to be protected is then separately gazetted, allowing new ones to be added on in the future.
Asked for examples of commercial misuse of Lee's name and image, Wong cited "the company that tried to do the buns," as well as individuals and companies printing t-shirts or creating figurines that could be sold.
However, Wong said that the use of Lee's image in the design of the widely-used black ribbon of mourning, or in portraits that were sold for charity recently, were examples of what the government was not opposed to.
"We are not saying it's banned or not allowed, it's just a restriction," emphasised Wong.
"Not a blanket disapproval, but approval is required," he added, making clear that the Government is still studying the best way to move forward on the issue.