THE outlook for Singapore's financial sector remains bright, according to Senior Minister Goh Chok Tong.

But he says industry players need to adapt to the new realities of the post-financial crisis landscape if the Republic is to remain a leading financial hub.

Speaking to Singapore bankers at the Association of Banks of Singapore (ABS) annual dinner at the Meritus Mandarin Hotel on Friday night, Mr Goh acknowledged that 'the tone of discussions about the global financial industry has been rather subdued and introspective'.

But banks here should take heart, he added. 'Singapore is situated at the heart of a growing Asia,' he said.

'Rapid urbanisation will mean more infrastructure projects need financing and Asia's demographic also mean that there will be great demand for wealth planning and products like life insurance.'

Meanwhile, the crisis has resulted in a greater emphasis on competence, trust and good governance - all qualities that Singapore's financial sector has built a reputation for, he said.

But Mr Goh also warned that it was vital that Singapore does not rest on its laurels despite its many global accolades.

'It is important not to be complacent as trust, good governance and our reputation for competence require continuous reinforcement as standards change and new demands arise,' he said. 'Nevertheless, our strong fundamentals will give us a firm footing to tap the region's growth opportunities when they come.'

Read the full report in Saturday's edition of The Straits Times.