Latest news with #BryanYeo
Mint
9 hours ago
- Business
- Mint
Singapore's GIC sees AI opportunity for India as "raw ingredients" are in place
As the world scrambles to navigate the rapid rise of artificial intelligence (AI), GIC, which manages Singapore's foreign reserves, is a few steps ahead. It has already made AI a core pillar of its long-term investment strategy. In this journey, India stands out as a key growth engine, backed by its deep talent pool, accelerating digitisation, and early adoption of AI across sectors like healthcare, finance, and infrastructure. In an exclusive interview with Mint, GIC's group chief investment officer Bryan Yeo shared insights on the firm's AI investment thesis, the role of its flagship Bridge Forum, a platform connecting AI startups with global corporations, and how it is also deploying AI internally to improve investment decisions. Edited excerpts: Amid the prevailing geopolitical uncertainty, particularly around US-India trade ties, how is GIC positioning itself in India, especially in AI-related investments? We certainly acknowledge the rising geopolitical and structural uncertainties globally, including around the US-India tech and trade relationship. However, we are not overly concerned about near-term volatility. At GIC, we take a long-term, thematic approach to investing. Artificial intelligence is not just transformational, but foundational: a multi-decade theme. Read more: Unfazed by new players, GIC Re gears up to reclaim market share So, our focus remains on enduring opportunities like AI, where we see significant value creation, especially in a growing economy like India. While geopolitical risks are factored into our underwriting, they don't change our core thesis. Diversification is a key part of our strategy to ensure portfolio resilience, and India continues to be an important geography for us. Can you elaborate on how GIC is approaching AI investments in India? Where do you see the most immediate opportunities? Our framework divides the AI value chain into three categories: enablers, monetizers, and adopters. Enablers include companies building the infrastructure needed for AI, such as data centers and semiconductors. Monetizers are startups developing AI-native products and services. Adopters are large corporations integrating AI into their operations to drive productivity and transformation. Right now, we are most deeply invested in enablers across the globe, including global partnerships in data infrastructure. But in India, we are mostly invested in adopters through large- and mid-cap listed tech companies, as well as industrial and financial companies. We take a bottom-up approach with all our investments. While there is no dedicated fund for AI investments in India, we are invested in various layers of the Indian AI ecosystem through both public and private equity. What role does the Bridge Forum play in supporting your AI strategy in India? The Bridge Forum is GIC's flagship initiative to foster synergies between AI startups and large global enterprises. It's held biennially in Silicon Valley—the last edition was in May 2025—and we've made over 500 curated introductions between founders and 250+ C-suite leaders from 20 countries. In 2023, we brought the Bridge Forum to India for the first time. It was a CTO-focused edition, with participation from leading Indian startups such as Flipkart, Razorpay, Zepto, Postman, and global players like Microsoft, Snowflake, Databricks, and Stripe. We are hosting the next India edition in Mumbai later this year, where we aim to connect Indian tech founders with CIOs and CTOs of multinational corporations. The goal is to help Indian startups scale by selling into global markets, while enabling MNCs to adopt cutting-edge AI technologies — creating commercial value for all parties, including GIC. India still lags behind the US and China in AI innovation. What's your view on this gap, and how can India catch up? I see it as a journey. India, if compared with the US, is behind in terms of maturity of the startup ecosystem and growth. However, we are very optimistic about India's long-term potential. The growth of the ecosystem is supported by the large pool of strong engineering talent, a rapidly growing digital economy, and a supportive regulatory environment that India has. We hire many fresh graduates in our India offices and see first-hand the technical capabilities. While the AI startup ecosystem is still nascent, we believe the raw ingredients are in place. Our approach is to deploy patient capital and support proven, commercially viable startups as they scale. What's your view on India's government-led initiatives such as the IndiaAI Mission? Do state partnerships affect GIC's investment focus? The IndiaAI Mission and similar government initiatives can provide a strong push for AI adoption and digital infrastructure development. Government-backed projects can provide validation for how good a product or service is as they need certain markets to pilot and grow. GIC's focus, however, remains on commercial use cases. What matters to us is whether a company has a solid business model, strong management, and scalable technology. You've spoken about digitalization being a key driver. How significant is that for your India portfolio? Digitisation is a major value creator, especially in the financial sector, where we have been long-term investors. GIC's exposure to financial services in India is around $20 billion—this includes banks, NBFCs, and insurance companies across public and private markets. We've been invested here since the early 1990s. AI is now a key enabler in digitising financial operations—from customer onboarding and credit scoring to fraud detection and operational efficiency. Read more: Exclusive: Greenko founders buy Orix Corp.' 20% in Greenko Energy for $1.4 billion, announcement on Monday We also see strong potential for AI adoption in healthcare — in medical imaging analysis, drug development, and clinical safety testing. In supply chains and manufacturing, AI is being used for predictive routing, quality control, and process optimization. GIC is actively invested in Indian infrastructure, real estate, IT services and manufacturing. AI adoption in these sectors will only accelerate and open up new investment opportunities. How is GIC using AI internally? We are undergoing a multi-year transformation to become an AI-enabled organization ourselves. One standout project is the Virtual Investment Committee (IC) Member — a platform that ingests investment memos, analyses them in about an hour, and generates reports with probing questions, risk flags, and discussion prompts. This tool is already in use by our real estate and fixed income teams, and it draws on decades of deal data to simulate IC discussions and identify the blind spots. We are now developing varied AI personas — such as a risk manager — to further enhance decision-making. This kind of internal adoption helps us improve efficiency and analytical rigour. It is not about replacing people, but augmenting our capabilities with intelligent, agentic tools. And finally, given the AI-driven disruptions, how do you think companies, including those in India, should prepare? We see AI as both an opportunity and a risk. It will create immense value, but will also disrupt traditional business models. Companies that embrace AI early will likely gain a significant competitive edge, while those that resist may fall behind. In India, companies across sectors—from finance to pharma—need to proactively invest in AI adoption. At GIC, we will continue supporting businesses that are positioning themselves to thrive in this new environment. Read more: The spectre of AI is staring Indian IT in the face
Independent Singapore
14 hours ago
- Business
- Independent Singapore
GIC sees need for further investments in energy infrastructure
SINGAPORE: Sovereign fund GIC is expanding its energy infrastructure portfolio while addressing a complex global landscape where regional energy strategies vary greatly. 'The world really needs all kinds of energy. I would say it needs it quickly because, especially with AI, the demand for energy is tremendous,' said GIC's CEO Lim Chow Kiat, emphasising the urgent energy needs driven by new technologies. Although renewable energy costs have dropped by nearly 85% over the past decade, GIC understands that regional approaches differ. Natural gas is expected to remain important in the US, while renewables are particularly strong in Europe, China, and India. The fund's investment strategy focuses on regions with clear regulatory frameworks. It targets regulated electric networks and utilities that provide stable cash flows and growth potential. Key areas of interest include dispatchable baseload generation, battery storage, and grid infrastructure solutions. 'The transition theme is the main one for us. If we can find good opportunities, with capable management who have solid plans, and we track their progress, that creates long-term value,' said Bryan Yeo, the group chief investment officer. Emerging technologies in hard-to-decarbonise sectors present significant chances. GIC has invested in green ammonia projects with competitive costs and innovative supply chains. The fund has also supported a European cable systems manufacturer and a utility company in Asia-Pacific that is shifting from coal to cleaner energy sources. Energy management, smart metering, and cooling options for data centres and industrial environments are crucial investment areas. For instance, data centre energy use is forecast to reach 8% of global electricity demand by 2030. Better economic fundamentals, not government subsidies, are driving the push for electrification. Buildings and transportation are two industries that are changing quickly, with electric heat pumps and cars becoming more practical choices. In addition to energy infrastructure, GIC is exploring climate adaptation solutions. This includes traditional building materials that resist climate impacts and new technologies for weather intelligence. A report GIC published in May predicts that global annual revenues from specific climate adaptation solutions will grow from US$1 trillion (S$1.35 trillion) today to US$4 trillion by 2050. This increase will have US$2 trillion in growth as a result of global warming. This approach reflects GIC's focus on strategic, future-proof investments that balance economic returns with environmental sustainability. The recent Techem deal, where it co-invested with a consortium of firms in a German property tech company, reflects this.
Independent Singapore
5 days ago
- Business
- Independent Singapore
GIC maintains stable returns, grows portfolio to US$936 billion
SINGAPORE: Singapore's sovereign wealth fund GIC, which ranks as the 7th largest in the world with US$936 billion (S$1.27 trillion) in assets under management (AUM) according to GlobalSWF, reported a stable 3.8% real rate of return over 20 years. The fund's annual report, 'GIC Report FY2024/25,' released on July 25, showed a slight decline of 0.1 percentage points from last year's performance. Unadjusted returns were at 5.7% in US dollars, based on a rolling 20-year analysis. The portfolio shifts reflect strategic adaptability. GIC's investment landscape experienced significant changes in geography and asset classes. The portfolio's exposure to the Americas increased from 44% to 49%, mainly due to US investments. In contrast, exposure to Asia-Pacific fell from 28% to 24%. Additionally, the asset mix shifted, with real assets remaining constant at 23%, fixed income falling to 26%, and equities increasing from 46% to 51%. GIC has identified three key transformative forces: artificial intelligence (AI), climate change, and shifting global dynamics. The fund is adopting a detailed investment strategy, classifying potential AI investments as enablers, monetisers, and adopters. See also Is The Straits Times character-assassinating The Online Citizen? 'Granularity is about looking two, three layers deeper,' notes Group Chief Investment Officer Bryan Yeo, underscoring the fund's refined approach to new technologies. The fund's monthly return volatility hovered around 7% over 5- and 10-year periods. GIC's strategy emphasises long-term value creation while avoiding permanent capital loss through diversification and agility. GIC is also integrating AI within the organisation. For instance, it is testing a chatbot with its real estate and fixed income teams to improve analytical capabilities. The fund also takes a practical approach to sustainability, focusing on real-world transition rather than superficial portfolio changes. Commenting on the tech integration, Lim Chow Kiat, CEO of GIC, shared: 'Our organisational strength underpins our investment capabilities. One area demanding concerted effort and commitment across all levels of the organisation is technology integration. Like many, GIC is actively building its AI capabilities.' 'This includes in internal audit, where we leverage AI to detect anomalies in both structured and unstructured data, automating the analysis of large and diverse data sets to identify risk trends and focus areas,' he adds. In its annual report, the fund acknowledged complicated global issues. Increased geopolitical tensions, technological disruption, fragmented trade, and changing economic dynamics are a few of these. Speaking on these challenges, Lim said, 'In an increasingly more volatile and fragmented trade system, policy decisions can quickly reverse advantages, reminding us that today's winners may not remain so tomorrow.' Lim observed that the current fragmentation of the global trading system is also unfolding in capital markets. This also extends to financial systems, which are divided along geopolitical fault lines, complicating cross-border investing. In response to this, GIC's investment strategy now focuses on three main principles. These are geographic and asset class diversification, tightly focused investment strategies, and rapid response to new market trends. Despite challenging international circumstances, the fund notes that it is employing transparent methods and a cautious strategy to manage Singapore's reserves. While navigating an increasingly complex investment environment, the fund remains committed to creating long-term value. GIC tends to rely on two pillars in managing the portfolio: top-down portfolio construction and bottom-up asset selection. Speaking on the funds investment approach, Lim said, 'We diversify with intent, deploy with granularity, act with agility, and invest in partnerships, always taking the long view, protecting against permanent impairment, and preparing rather than predicting.' GIC is also noted to be actively engaged in a strategy of partnered investments, with a track record of co-investing with major sovereign and state investment funds worldwide, across more than 40 markets. '2025 may be a turning point in markets — and in history. 'There are decades where nothing happens, and weeks where decades happen.' We are living in one of those moments. As the investment world grows more complex, our responsibility to steward Singapore's reserves— with integrity and foresight—remains our guiding purpose,' notes Lim.
Mint
5 days ago
- Business
- Mint
Sovereign Fund GIC Uses AI ‘Devil's Advocate' for Dealmaking
(Bloomberg) -- The next time a banker pitches an investment to GIC Pte, one of the world's biggest sovereign wealth funds, their deal might get picked apart by its latest AI tools: a Virtual Investment Committee and an 'Agentic Devil's Advocate' chatbot designed to ask tough questions. GIC on Thursday unveiled a video demonstration of its newest platform to highlight how AI is changing the way the Singapore state investor does deals. About an hour after uploading data and background materials on a proposed investment, the bot spits out a detailed summary of the key issues and examples of questions an investment committee member might ask before giving it a green light. To truly prepare for pitching to human bosses, GIC staff can also switch to hard mode and 'Spar with an Agentic Devil's Advocate' - a live chat service named 'Ask Charlie' that will simulate conversations and ask curveball questions just as a real committee member might. To build the in-house AI platform, which is meant for internal-use, GIC customized several large language models and input reams of its own data gleaned from four decades of dealmaking around the world. 'We've been around since 1981, so we've got 44 years of data,' said GIC Group Chief Investment Officer Bryan Yeo. 'The data that we have across different asset classes, across different regions through our investments and through our deals actually is the competitive edge we have.' GIC is part of a growing cohort of investment firms racing to use AI to transform their operations and enhance returns. Companies including General Atlantic and Blackstone Inc. have touted their developments, while trying to back startups that could one day outshine Alphabet Inc. and Meta Platforms Inc. And while GIC's AI demonstration could be brushed off as never-to-be-used vaporware if shown by a Silicon Valley startup, few can match the heft and access of the fund - an investment giant estimated by consulting firm Global SWF to manage $847 billion in assets. Read: Singapore's Cautious Wealth Fund Takes More Private Markets Risk Even the fake deal used in the demo, codenamed 'Project Blue Sky,' was a quiet flex of GIC's size. In a $50 billion privatization for an unnamed aeronautical company, $30 billion would come from GIC and its co-investors plus $20 billion in loans, with a planned exit within seven years. That's not a stretch for a fund that was part of a rejigged €6.7 billion ($7.8 billion) deal last week, and helped close a $14 billion take-private transaction for Store Capital Corp. in 2023. The firm's internal teams are using the large language models - Yeo declined to say which - to develop agentic personas to populate the virtual investment committee. Three examples included a risk manager, a contrarian investor and an optimistic investor. Agentic AI systems can operate independently, with less human supervision than generative AI. Deal teams are already using the service, which is currently restricted to asking questions rather than passing final judgment on any deal. But chatbots serving up tough questions have already proven popular with GIC's top leaders. Chief Executive Officer Lim Chow Kiat said the most interesting interactions he's had with the AI agents come from asking them to pose questions that stimulate his thinking. He also repeats the same questions multiple times to see how the responses vary, to better understand their reasoning process. 'We have a separate kind of research tool, which we call Research Assistant, and I use it as a colleague that you can have a back and forth with,' he said. In addition, GIC has been buying stakes in external AI companies, especially in the US. 'Trends like AI benefit the US the most,' because they have so many companies that are able to leverage it, said Lim. GIC is investing in three types of AI firms: enablers that build infrastructure for the sector; monetizers that create and sell AI-infused products and services, often in the form of startups; and adopters which are using AI to improve efficiency in their core business. More stories like this are available on
Business Times
5 days ago
- Business
- Business Times
‘Pressing need' for investments in energy infrastructure: GIC
[SINGAPORE] Sovereign wealth fund GIC sees a 'pressing need' for investments in grid infrastructure and power equipment supply chains, as it bets on opportunities in the electrification of the economy. GIC is 'constructive' on regulated electric networks and utilities, as investing in their asset base can provide additional earnings growth, the fund said in its annual report released on Friday (Jul 25). It especially favours assets in stable jurisdictions, with regulatory frameworks that 'support high cashflow predictability by providing inflation and volume protection'. 'The world really needs all kinds of energy; I would say in a hurry as well, because especially with AI, the need for energy is just tremendous,' said GIC chief executive Lim Chow Kiat at a media briefing on Thursday. He sees GIC being suited to provide the 'large and long-term capital' that energy investments require. In its report, the sovereign wealth fund said that it has backed a Europe-based company that designs and manufactures cable systems for energy and telecommunications, as well as a utilities company generating power across several markets in Asia-Pacific. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up The utilities company used to be predominantly a coal power producer, but has gradually moved to greener sources through recent investments. When looking at fossil fuel-related investments, GIC focuses on whether there is a plan to transition from brown to green fuels, said Bryan Yeo, its group chief investment officer. 'The transition theme is the overarching one for us. If we are able to find good opportunities, good company management who have a good plan, and we track their milestones… that actually creates long-term value,' said Yeo. The focus on energy comes as multiple sectors are undergoing electrification, such as buildings – with the use of electric heat pumps – as well as transport – with the rise of electric vehicles. Electrification is driven not by government subsidies and regulation, but by improving economics, as the cost of renewables declines, GIC noted. As the share of renewables in the global energy mix rises, there is a need for solutions tackling the intermittency and distributed nature of sources such as solar and wind power. Opportunities include dispatchable baseload generation and battery storage, which GIC noted are 'integral' to tackling grid congestion. Green fuels and energy efficiency One of the long-term investment themes GIC is bullish on is the continued shift towards electrification, powered by emerging clean technologies to decarbonise the economy. A second theme which offers attractive investment opportunities is the rising adoption of energy efficiency solutions which provide both economic and environmental benefits. Clean technologies are needed for sectors that are difficult to decarbonise, such as industrials and heavy transport. Solutions include green fuels and long-duration energy storage. 'While these technologies have yet to reach maturity, GIC has backed companies with the right attributes to succeed, such as having a differentiated technological or cost advantage,' it said. For instance, GIC has invested in green ammonia projects with access to cheap renewable electricity inputs or insourced supply chains. This makes them cost-competitive relative to their peers. On the energy efficiency front, GIC sees grid optimisation solutions being essential to improve grid stability. 'The capex-intensive nature of grid investments, as well as supply chain and labour constraints, offer an opportunity for innovative solutions to ease grid congestion and improve efficiency of energy delivery,' it said. One investment opportunity is electrical equipment companies that offer smart grid hardware and software to utility customers. GIC has also invested in smart metering companies which help residential and commercial clients with energy monitoring and optimisation. In addition, the state investor has backed companies that provide energy management and cooling solutions to data centres, and sees opportunities for similar solutions in other industries. For example, in the construction sector, companies specialising in insulation could reduce power needs for heating and cooling. 'In the manufacturing sector, we see value in industry leaders in steam and compression technologies offering products that reduce customers' total lifetime energy needs,' said GIC. Natural gas persists While the trends highlighted are 'durable', they are 'increasingly fragmented' as governments respond differently to the need for energy security, GIC noted. Even with the shift to renewables, GIC expects natural gas to continue to be part of the energy mix over the medium term. This is due to its low cost, provision of baseload power and cleaner emissions profile. Natural gas 'will continue to play a key role in the US over the medium term, but renewables remain well-positioned in Europe, China and India', said Yeo. With the complex energy landscape, 'high-quality businesses with multiple pathways to win and strong pricing power are more valuable than ever', said GIC. Power and electrical equipment companies that are 'agnostic to the energy supply mix in each market' are well-positioned, as they ride on growing energy demand regardless of supply dynamics. 'As evidence of their pricing power, some of these companies have also historically delivered resilient shareholder returns even amid varying economic conditions and volatile cost environments,' said GIC. Beyond energy, solutions for adapting to climate change are another investment opportunity. These could include traditional solutions, such as climate-resistant building materials, or new innovations such as weather intelligence. 'We will continue to work to identify more investment opportunities within each adaptation solution category,' the fund said.
