In a world of rising interest rates and shifting geopolitical dynamics, Singapore’s Deputy Prime Minister Lawrence Wong highlighted the need for GIC, the country’s sovereign wealth fund, to navigate these challenges and seize new opportunities. During the GIC Investment Forum in New York on October 9, Wong underscored that the global landscape has transformed dramatically, requiring a new approach to investments.

Wong, who recently became GIC’s Deputy Chairman on October 1, opened the forum by reflecting on the significant shifts in the global economy. “We are now in a world where interest rates are likely to remain high for the foreseeable future, and the era of global cooperation is giving way to greater power competition,” he said. This was the first in-person forum since the COVID-19 pandemic, marking a crucial moment for GIC to recalibrate its strategies.

As one of the world’s largest institutional investors, GIC plays a key role in managing Singapore’s foreign exchange reserves. In his address, Wong emphasized the importance of positioning the portfolio strategically in response to the current environment. He shared these thoughts on social media, noting that discussions with GIC’s management team and advisors were insightful and critical in determining the path forward.

Joining Wong was Deputy Prime Minister Heng Swee Keat, who is also on a working visit to the United States. Both leaders engaged with top investment professionals, who shared valuable insights on the macroeconomic and geopolitical landscape, as well as promising opportunities in infrastructure and sustainability. Heng reiterated that understanding the risks and seizing the right opportunities would enable GIC to continue safeguarding Singapore’s financial future.

Despite the uncertain market conditions, GIC reported a strong 20-year real return of 4.6%, its highest in eight years. This reflects the fund’s resilience and strategic focus on investments that provide stable, long-term returns. Notably, the United States remains a significant part of GIC’s portfolio, representing 38% of its investments.

The forum in New York is just one part of DPM Wong’s broader itinerary in the U.S., which includes launching a new Enterprise Singapore node to support Singaporean start-ups. His next stop is Washington D.C., where he will engage with U.S. Cabinet officials and lead discussions on critical and emerging technologies. Meanwhile, DPM Heng will meet with business leaders and research institutions, aiming to strengthen ties and explore further opportunities for collaboration.