The Straits Times on Monday, Dec 20, quoted Prime Minister Lee Hsien Loong as saying that any decisions on the matter should wait until regulators finish investigations into losses at the company, the main supplier of jet fuel to China.

Authorities have opened a criminal investigation into China Aviation Oil, which lost US$550 million (euro416.95 million) in speculative oil trades. The firm's parent company is owned by the Chinese government.

"I would not, as a knee-jerk response every time something goes wrong ... say tighten the rules," the newspaper quoted Lee as saying Sunday.

"This was our old attitude, when we wanted rules where nothing would go wrong. I think that's not possible," Lee told local reporters. He said Singapore's corporate regulations are "in line with the best practices in other jurisdictions."

Singapore needs rules that are "not too lax or too strict," he said.

China Aviation Oil sought court protection from its creditors and is working on a restructuring plan.

The company reported losses last month from betting on the future price of oil. It began losing money on oil trades in the first quarter of 2004, but increased its purchases in the hope that prices would fall. Instead, the price of oil rose to all-time highs in late October.

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