In a powerful keynote address delivered at the GIC Insights gala dinner in New York on November 13, Senior Minister Lee Hsien Loong reaffirmed the unwavering support of the Government of Singapore Investment Corporation (GIC) in the long-term potential of the US economy. Lee, who also chairs GIC’s board of directors, emphasized the essential role of mutual trust and confidence between GIC and its US partners, which has been a driving force in their shared success.

"The US remains the most significant, dynamic, and resilient economy in the world," Mr. Lee noted, highlighting that it continues to attract talented individuals and innovative minds globally. He underscored the exceptional nature of America's capital markets, which consistently lead in innovation and accessibility.

Marking a significant milestone, 2024 will see GIC celebrating 40 years of investing in the US. Lee hailed the evolution of this partnership, stating it has grown "from strength to strength," enabled by the fruitful relationships cultivated over decades with US fund managers and partners.

Unleashing New Investment Opportunities

During his address, Mr. Lee shared GIC's ongoing commitment to exploring investment opportunities in the US, particularly in burgeoning fields like climate technology and sustainability. He highlighted the dual benefits of such investments—not only do they contribute to the global decarbonization effort, but they also positively impact local communities.

"One notable example is a company building a battery plant in West Virginia that manufactures iron-air batteries, thereby creating hundreds of jobs in the local area," he explained. Furthermore, Lee mentioned a project aimed at electrifying school transportation, showcasing an initiative in Oakland, California, which boasts the country's first fully electric school bus fleet.

Navigating Economic Challenges

Reflecting on GIC's long history of resilience, Mr. Lee shared insights on maintaining investments through various market challenges. "Our journey in US markets has had its share of turbulence," he noted, referencing significant events including the "Black Monday" crash of 1987, the dot-com bubble, the 2008 financial crisis, and the COVID-19 pandemic. Yet, throughout these fluctuations, GIC has remained steadfast, illustrating a deep commitment to a long-term investment strategy.

Mr. Lee emphasized the importance of taking a long-term view in the face of market cycles. "While many investors have shorter time frames and defined exit strategies, our horizon is not limited to just years or decades. Instead, we focus on fundamental value," he asserted, recognizing that true investment success often requires weathering the storm.

He also made a poignant reference to historical investment literature, recalling the book *Dow at 36,000*, published in 1999. GIC's presence in the US markets predates this publication, and today's Dow Jones Industrial Average approaching 44,000 underscores the value of a patient, long-term approach. "We have benefitted immensely from the power of long-term compounding," he concluded.

As Mr. Lee expressed confidence in GIC's continued engagement in the US market, he reinforced the notion that while challenges will arise, the rewards of disciplined and informed investing far outweigh the risks.

In summary, GIC's dedication not only solidifies its reputation as a significant player in the investment landscape but also positions it as a vanguard of sustainable practices and long-term growth in the ever-evolving economic environment. With a 40-year history in the US and ambitions for the future, GIC stands ready to contribute to both the US economy and global sustainability efforts.