The head of reserve management at Singapore's central bank has suggested official-sector investors move into riskier asset classes to fulfil their remit as long-term investors and should not be discouraged by the crisis.

The crisis did not "invalidate" diversification he said.

Lee Chuan Teck, the executive director of the Monetary Authority of Singapore's reserve and monetary management department, said on Thursday that the public sector should take advantage of a flight to safety by hedge funds