Chief Executive Officer John Rice said he expected rising inflation and higher commodity prices to be challenges but said demand for GE's products and services was still strong.

"We are providing critical products and services to companies and countries who are mining and selling commodities. Demand for these products have surged with the increase in commodities costs," Rice said on Monday in an e-mail interview.

"Demand for our products continues even as we have to raise prices due to raw material costs going up," he said, ahead of his visit to Singapore for an industry conference on Tuesday.

"We are focusing on reducing our expenses, and ... finding ways to cut costs by managing our supply chain, controlling costs and improving efficiencies," he said.

GE Infrastructure makes engines, electrical turbines and water purification plants and also provides financial services.

(Reporting by Melanie Lee; Editing By Ovais Subhani)