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)