'There is a danger that politicians and policy-makers will learn the wrong lessons from the current crisis,' GIC Executive Director Tony Tan said in Washington on Sunday, according to a speech provided by GIC on Monday.

Tan said developments in the financial sector has made it easier for borrowers to access funds on more flexible terms while savers now have a greater array of instruments to invest in for diversification and risk management purposes.

'What the 1930s has taught us is that we should guard against over-regulation and protectionism and a retreat from globalisation,' he added.

GIC manages about US$330 billion (S$486 billion) in assets, making it the world's third largest sovereign fund after Abu Dhabi and Norway, according to Morgan Stanley. -- REUTERS

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