Singapore  - Singapore Prime Minister Lee Hsien Long said the city-state's financial system must remain open to the world although the presence of foreign banks poses potential risks in the current economic downturn.

"While we take reasonable safeguards, we must stay open to the world," Lee said Thursday night at a dinner to celebrate Standard Chartered Bank's 150th anniversary in Singapore. "Walling ourselves in does not mean that we would be safe; it just means we will starve."

As a lesson from the financial crisis, Singapore is reviewing the regulations for its financial system, Lee said.

"Our basic framework has worked well, but we are scrutinizing the system to minimize vulnerabilities," Lee said, according to a transcript of his speech published by the Straits Times newspaper Friday. "Where there are regulatory gaps, we will close them."

Lee urged foreign banks in Singapore to look long term and stick to their clients, especially in uncertain times.

"In normal times, it may not matter who owns a bank because all banks will make loans, but in a crisis, it makes a crucial difference whether a bank has a long-term stake or a peripheral interest in Singapore," the premier said. (dpa)