MM Lee did care about quality: Lee Kuan Yew once said that graduates should only marry graduates and that one should not form a graduate, non-graduate partnership. For him, such a partnership would jeopardize the chances of giving rise to "graduate children".
That's eugenics. Hitler had also believed in that in Nazi Germany. Tells you much about LKY's character.
Also, what happened to those 'exceptional genes' which had produced an albino?