“We are quite cautious with regard to short-term hype, there’s lots of enthusiasm. But we would also say actually, it is even more important to be attentive in the long term.”
The CEO said geopolitics has become an important factor in the past few years and is likely to stay for “quite a while”.
“(It is) mostly a risk, even though it also throws up new opportunities,” he said, citing the global reconfiguration of supply chains that has benefited Southeast Asia, Mexico and India.
When reporting its results this year, GIC warned of “challenging” prospects, including sticky inflation and chronic geopolitical risks. The fund’s 20-year annualised real rate of return was 4.6 per cent for the year ended Mar 31, the highest since 2015, when real returns hit 4.9 per cent.
Asked to respond to criticism that the metric is not easy to understand, Mr Lim said: “You underestimate the layman.”
But he explained that the metric best matches GIC’s mandate – to invest Singapore’s reserves for the long term.
“CLEAR AND STABLE PURPOSE”
Mr Lim is the second Singaporean to win a Dwight D. Eisenhower Global Award after Singapore Airlines CEO Goh Choon Phong received one in 2016.
“We’re very proud and honoured that it actually matches really well with (what) GIC is,” Mr Lim said.
The award recognises his and GIC’s efforts to lead with “purpose, vision and responsibility for the benefit of society”.
On a personal level, he also believes living with purpose is important.
“Maybe that’s why I joined the company. This organisation has a very clear and stable purpose – from day one until now, it’s the same purpose,” he said.
That is part of what has kept Mr Lim working in the sovereign wealth fund for over 30 years, through roles ranging from portfolio manager to chief investment officer before he became the CEO.