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The long-termists: Lessons from GIC's pioneers relevant as ever
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Singapore's reserves were not built in a day. Here's how Yong Pung How and Lee Ek Tieng moulded GIC to manage them.
Though the pioneers are no longer among us, the writer hopes that the GIC of today remains a continuation of their vision and values.
Every year, National Day invites us to reflect on Singapore's remarkable journey and the people who made it possible. At GIC, this day reminds us of the work done by our founding leaders and their teams who shaped our mission: to secure Singapore's financial future by preserving and enhancing the international purchasing power of our reserves over the long term.
These pioneers laid the foundations for Singapore's economic security.
The late Mr Lim Kim San once said that financial security was the cornerstone of a nation's sovereignty – the ability to be the 'master of its own fate'. This conviction still guides us today.
Our reserves have been built up prudently over the decades, giving Singapore a buffer to weather crises ranging from the Asian financial crisis to the global financial crisis to the Covid-19 pandemic.
But the reserves are more than a rainy-day fund. They are also, as the CNA documentary Singapore Reserves Revealed described in 2023, a 'secret weapon' for nation-building – funding, for example, public infrastructure or supporting land reclamation projects. These capabilities were made possible by the foresight and discipline of the early stewards of the reserves.
The founding of GIC has been well documented. We are a brainchild of Dr Goh Keng Swee, who envisioned a bold future under the aegis of our founding chairman, Mr Lee Kuan Yew.
But vision alone was not enough – it needed the right people to bring it to life, and Dr Goh enlisted a few trusted individuals.
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Among them was Dr Yong Pung How – no stranger to Singaporeans as our second chief justice but who, in 1981, was better known as a veteran banker.
Dr Yong took on the challenge of building a global investment organisation from the ground up in two years, establishing legal structures, governance, talent, systems and strategy.
He recruited GIC's first investment managers and helped to develop a robust governance framework with the ministries.
Though Dr Yong never sought attention, those who worked with him recall his exacting standards, clarity of mind and genuine concern for people.
He built something enduring by defining GIC's purpose from the start. Dr Yong advised incorporating GIC as a private limited company, wholly owned by the Government, to manage, but not own, the foreign reserves under its charge.
This avoided complications from owning foreign assets and safeguarded the reserves entrusted to GIC from the outset.
While Dr Yong later went on to serve as chief justice, his legacy to Singapore began long before that – in a modest office, working late into the night, building the plumbing and wiring of an organisation to protect and grow the country's reserves.
Thinking long-term
With the foundations laid, Mr Lee Ek Tieng joined GIC as group managing director to build on them.
Mr Lee, who sadly passed away this April, is best remembered as the 'green general of Mr Lee Kuan Yew', transforming our built environment as the first permanent secretary for the Ministry of the Environment. But his contributions to Singapore's economic resilience were equally vital.
In his typical unassuming manner, he met the demands of the moment, while keeping a clear vision for the long road ahead – critical in protecting and growing the reserves in a fast-changing investment landscape.
Under his leadership, GIC expanded its global footprint, ventured into emerging markets ahead of the curve, and developed new capabilities in private markets to navigate a more complex world.
By diversifying into private markets and building a global reach, he reinforced the resilience of the portfolio and, by extension, the reserves placed under GIC's management against external shocks.
What stood out most about Mr Lee, though, was his warmth.
Over 30 years ago, as a young investment officer, I experienced it through simple gestures, like his words of encouragement or genuine interest in the well-being of staff of all levels.
I witnessed his acts of empowerment not through elaborate processes or grand speeches, but through verified trust. He took the time to get to know you and, once confident in your character and work quality, gave you the space to excel.
His commitment to values like prudence, respect and collaboration helped shape GIC's culture in ways that still resonate today.
Alongside them were other key figures – Mr J.Y. Pillay, Mr Lim Siong Guan, Mr Ng Kok Song and more – whose steady hands and principled approach strengthened GIC's foundations in governance, people and global investing.
They never lost sight of the importance of staying long-term, doing what's right and not what is easy, for the singular purpose of ensuring Singapore would have the financial strength to weather storms and seize opportunities.
Their long-term perspective continues to be our anchor. The decisions we make today may only bear fruit years from now. It's a lesson grasped by our early leaders that we continue to honour.
Lessons still relevant
Today, we face foundational shifts – profound changes that are harder to predict and prepare for: artificial intelligence, the climate crisis and unprecedented geoeconomic fragmentation.
In such times, it can be tempting for a fund manager to chase the short-term hype or retreat into excessive caution.
At GIC, we do neither. Our response draws directly from the strengths of our founding leaders: Dr Goh's bold vision, Dr Yong's clarity of purpose, Mr Lee's global perspective, and the prudence, long-term thinking and discipline of all our early stewards.
It enables us to ride through cycles, avoid overreaching for returns, and remain steady when others are unsettled. We stay focused on building long-term value and avoiding 'permanent impairment' – the kind of loss that is very hard, or even impossible, to recover from.
We take an 'inversion' approach to risk – thinking about problems in reverse and studying the typical causes of permanent impairment so we can steer clear of them. Historically, such losses have come from weak business fundamentals, having to sell early to repay debts, external shocks, or even fraud. We work hard to guard against such pitfalls.
Less obvious but equally damaging is overpaying. History offers many reminders: the Japan stock market bubble in the late 1980s, the crash in the early 2000s, and the repeated bursts of meme stock bubbles in recent years. In these cases, even if prices eventually recovered, the time lost would have been too great. This is why we remain disciplined on price.
For Singaporeans, these principles are more than an investment philosophy – they reflect our country's ethos of long-termism. Our founding leaders approached every endeavour with the intent to make it endure for generations.
This National Day, we remember not just how GIC began, but why it was established – and who made it possible.
Dr Goh had the foresight to imagine a different path. Dr Yong had the resolve to build it. Mr Lee had the skill to grow it. Each of them served with humility and dedication, handing down something precious: a clear purpose and a culture of integrity.
Along with many others, playing roles both big and small, these pioneers contributed to growing the reserves and, in turn, securing Singapore's financial future. We are fortunate to inherit this foundation, and though they are no longer among us, we hope that the GIC of today remains a continuation of their vision and values.
Many key institutions in Singapore share similar origin stories – visionary leaders and dedicated teams united by a shared purpose and the spirit of public service. In this respect, GIC is not unique.
However, remembering our past and recounting our stories deepens our understanding of how we got here today, and offers valuable lessons and inspiration for tomorrow.
Happy SG60.
Lim Chow Kiat is the chief executive officer of Singapore's sovereign wealth fund, GIC.
