SINGAPORE – Temasek Holdings, Singapore’s state investment company, reported an impressive 11.8% increase in its net portfolio value, reaching a record S$434 billion (US$324 billion) as of March 31, 2025. This growth was driven by strong performances of local listed firms and strategic investments in China, India, and the U.S.
Outstanding Gains from Local and Overseas Assets
The jump in Temasek’s valuations paints a clear picture: domestic assets and global investments are flourishing. Core contributors include Singapore-listed entities like DBS and Singapore Airlines, alongside high-performing portfolio components in China, the U.S., and India. Temasek’s valuation would further rise to S$469 billion when factoring in unlisted assets.
Navigating Global Risk in a Volatile Environment
The release of these results coincided with ongoing geopolitical and economic headwinds. The U.S. announced new tariffs on several Asian economies, effective August 1, and rising geopolitical tensions have raised uncertainty in global markets.
In response, Temasek has been “actively rebalancing” to cushion its portfolio from macroeconomic shocks. The firm emphasized its focus on investments in startups and blue-chip companies that generate stable cash flow, operate in large domestic markets, and are less exposed to trade volatility.
In line with this strategy, Temasek invested S$52 billion and divested S$42 billion during its latest financial year—a net investment of S$10 billion, reversing the previous year’s net divestment of S$7 billion
Investment Focus: Infrastructure and AI
Temasek’s executive leadership spotlighted future sectors of strategic importance. Chief Financial Officer Png Chin Yee noted the group’s increased allocations toward artificial intelligence (AI) and core-plus infrastructure, including renewable energy and digital infrastructure
Temasek’s Deputy CEO Chia Song Hwee added that the institution also actively invests in AI-focused enterprises like Nvidia, Databricks, and Veeam, and collaborates with global partners—such as Microsoft and BlackRock—to expand AI infrastructure
Sector and Regional Investments
Temasek’s strategic diversification continued in FY2025:
- Americas: Portfolio exposure increased from 22% to 24%
- China: Now accounts for 18%, with continued interest in green tech, life sciences, and leading local brands
U.S. economic risks—such as tariffs and policy uncertainty—are seen as having “likely peaked,” with potential growth rebound expected later this year, especially if the U.S. Federal Reserve eases rates
Long-Term Returns and Performance Metrics
Temasek’s 20-year total shareholder return (TSR) remains steady at 7% annualised, consistent with 2024. However, the 10-year TSR dipped from 6% to 5%, primarily due to strong performance in early 2015 being moved out of the calculation window
Temasek is one of three Singapore entities whose returns are tapped under the Net Investment Returns Contribution (NIRC) framework to support national budgeting.
Executive Insights: Strategy Amid Uncertainty
CEO Dilhan Pillay noted that the dual forces of geopolitical tensions and technological disruption—particularly through AI—are shaping the investment landscape. He emphasised a “pragmatic and clear-eyed” approach to navigating an evolving world.
Deputy CEO Chia Song Hwee highlighted the importance of performance benchmarks, stating, “We watch whether companies are delivering on their own targets—not chasing share prices.”
Outlook: Sustainable Growth in a Multipolar World
Temasek’s future roadmap involves:
- Deepening investments in digital infrastructure and AI
- Tracking core-plus infrastructure (e.g., energy transition assets)
- Expanding presence in green economy sectors
- Maintaining diversified global exposure across Singapore, the U.S., China, India, Europe, and the Middle East
In its latest review, Temasek also signalled a more cautious stance toward European investments, citing concerns over weak trade growth and tight credit, despite earlier commitments of up to S$25 billion over five years. Current portfolio exposure in Europe, the Middle East, and Africa now stands around 12%, with slight rebalancing underway.
Conclusion: Record Gains with Vigilant Guardrails
Temasek’s end-March portfolio value of S$434 billion marks a new milestone, powered by robust domestic stocks and global diversification. Its proactive rebalancing and focus on resilient sectors reflect an agile strategy amid global uncertainty.
As Temasek continues its disciplined investment cycle, it remains a pivotal contributor to national fiscal resources and a bellwether for Singapore’s economic confidence.
