By Francis Chan

THE Government of Singapore Investment Corporation (GIC) is integrating its management structure to better tackle the challenges of the fast-changing economic and financial environment.

GIC is one of two bodies that oversee the investment of Singapore's national wealth. The other is Temasek Holdings.

One key change: Mr Lim Siong Guan, 62, will take on the newly created role of GIC group president, overseeing all three GIC investment units: GIC Real Estate (GIC RE), GIC Asset Management (GAM) and GIC Special Investments (GIC SI).

The three invest in: real estate, financial markets, and private equity and infrastructure investments respectively.

Mr Lim is currently GIC group managing director. He steps down as Economic Development Board chairman on June 30.

In other key changes that take effect on July 1, Dr Richard Hu and Mr Lee Ek Tieng will retire as chairman of GIC RE and chairman of GAM respectively.

Both Dr Hu, 82 and Mr Lee, 75, will, however, remain at GIC as advisers to its group executive committee.

But even as these two pioneers of Singapore's economic development retire from these posts, the positions will be filled internally with existing board members to ensure stability and continuity at the state investment vehicle.

GIC deputy chairman and executive director Tony Tan will take over as chairman of GIC RE. Dr Tan, 69, will also continue with his current duties as chairman of GIC SI.

Mr Lim will also replace Mr Lee as chairman of GAM which also comprises the Public Markets Group.

In a statement yesterday, Dr Tan explained that the latest changes are necessary to ensure that GIC remains relevant to the times.

'The changing economic and financial landscape requires GIC to be agile and responsive to new challenges and opportunities,' said Dr Tan.

'The management changes will enable GIC to operate more effectively on an integrated basis, while extracting maximum value from the special characteristics and specialisations of the individual asset classes.'

As group president of GIC, Mr Lim will be in charge of the organisational development of GIC RE, GAM and GIC SI. The three operate separately under respective presidents and boards of directors.

Investments by GIC, through GAM, in Citigroup and beleaguered Swiss bank UBS have taken a beating in the current financial crisis although recently some of the losses have been pared.

Losses in banking investments suffered by Temasek prompted Minister Mentor and GIC chairman Lee Kuan Yew to reiterate earlier this month that GIC would be cautious and take few risks.

Industry watchers, who declined to be named, say it is too early to tell how Mr Lim's appointment as group president may affect GIC's investment strategies.

Most, however, agree that the creation of the new role, helmed by the outgoing EDB chairman, could mean that GIC may be looking for better integration between its three investment units.

'The three different presidents (of GIC RE, GAM and GIC SI) would now have to report to the group president and he will then take a position before GIC goes forward with the investments,' said one observer.

'There will of course be different personalities involved at the three different units but now, it is possible that they will work better with Lim Siong Guan as group president,' said another.

As group managing director, Mr Lim has been mainly overseeing GIC's corporate services in areas such as human resources, investment operations and legal and compliance.

Observers expect Mr Lim to draw on his experience as EDB chief, providing more strategic input in terms of investments decisions as GIC group president.

Both he and Dr Tan will assume their new roles from next month.

This article was first published in The Straits Times.