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Singapore PM says reviewing financial regulations

Singapore Prime Minister Lee Hsien Loong said the government is reviewing financial sector regulations to reduce shocks to the system.

“We are reviewing our regulations,” he said at a dinner to mark Standard Chartered's 150th anniversary in Singapore. “Our basic framework has worked well, but we are scrutinizing the system to minimize vulnerabilities.”

He said it is unlikely that a bank in Singapore will fail, but the authorities would remain alert to any contagion or systemic risk from the global financial crisis.

Singapore on Tuesday reported its non-oil domestic exports fell 35% in January from a year ago - the worst performance on record - and the government expects the economy to shrink by up to 5% this year.

“We expect our economy to have a very difficult year ahead,” Lee said. “We must remain vigilant.” (Reuters)