Singapore GIC says worst of crisis may not be over

SINGAPORE, Sept 23 (Reuters) - The Government of Singapore Investment Corp said on Tuesday the worst of the financial crisis may not be over, but it would continue to scour for opportunistic investments in sectors such as financials.

"We should not assume that the worst is over and we continue to be watchful and prudent in our assessment of the economic risks and in our investments," said Deputy Chairman and Executive Director Tony Tan at a news conference for its first annual report.

Chief Investment Officer Ng Kok Song said problems in the United States would present very interesting opportunities in impaired assets, and added developed economies will continue to be a big part of its portfolio.

He said GIC suffered some mark-to-market losses based on the financial model for its potential stakes in UBS (UBSN.VX) and Citigroup (C.N), but believed the two would generate good long-term returns.

The firm owns convertible notes that, if converted into shares, would give it about a 9 percent stake of Switzerland's UBS and around 4 percent of Citigroup.

Song said GIC also plans to increase its exposure to the emerging economies, particularly Asia. (Reporting by Saeed Azhar and Kevin Lim; Editing by Neil Chatterjee)