Singapore’s GIC marks 40 years of investments in the US, emphasizing commitment to resilience and long-term growth despite global challenges.
On November 13, 2024, Senior Minister Lee Hsien Loong delivered a keynote address at GIC Insights 2024 in New York City, commemorating 40 years of GIC’s significant investments in the United States. During his speech, Senior Minister Lee highlighted the strong partnership between GIC and the US, reflecting on GIC’s growth and its consistent commitment to long-term investments in the US market.
Founded in 1981, GIC was established to manage Singapore’s reserves and has since developed into a global investment powerhouse with a considerable presence in the United States. Lee shared how GIC’s origins were rooted in Singapore’s economic prudence, evolving from initial cautious investments to a well-diversified portfolio across various asset classes. Today, over one-third of GIC’s portfolio resides in the US, underscoring the nation’s integral role in GIC’s growth.
Lee recounted GIC’s journey from its early cautious steps, focusing on bonds and limited equities, to embracing modern portfolio theories and expanding into private equity, venture capital, technology, and infrastructure. He noted that GIC’s approach to investments involves a long-term horizon, allowing it to weather economic cycles and global crises such as Black Monday in 1987, the dot-com bust, the 2008 financial crisis, and the COVID-19 pandemic.
With the world facing increasing geopolitical and economic uncertainties, Lee stressed that GIC would continue its commitment to long-term investments while navigating emerging risks. He acknowledged the complex global landscape, where strategic and security concerns now influence economic decisions. Nevertheless, he expressed confidence in the US economy, citing its dynamism, openness, and potential in fields such as climate technology and sustainability as opportunities for continued investment.
To conclude, Lee thanked GIC’s US partners and fund managers for their support, expressing optimism for future collaborations. He reaffirmed GIC’s intention to remain a steady, resilient investor in the US, committed to creating wealth and prosperity that benefits both countries.
Source – PMO