Temasek, Singapore’s state investment firm, announced a record net portfolio value of S$434 billion (US$321.2 billion) for the fiscal year ending March 31, 2025.

This represents an increase of S$45 billion (US$33.3 billion) from the previous year.

The growth was driven by gains from Singapore-based companies and investments in China, the US, and India.

The firm achieved a 20-year total shareholder return of 7% and a 10-year return of 5%.

Temasek’s portfolio is categorized into three segments: Singapore-based companies (41% of total value), global direct investments (36%), and partnerships, funds, and asset management companies (23%).

Temasek’s startup investments, direct and via VC funds, accounts for 5% of its net portfolio value, which amounts to around S$21.7 billion (US$17 billion) in FYE 2025.

Temasek has diversified its portfolio by investing in both emerging and established market leaders, infrastructure projects, and alternative assets.

Notable investments during the year included companies in the AI and clean energy sectors.

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🔗 Source: Temasek

🧠 Food for thought

1️⃣ Accelerating portfolio growth and investment pace signals strategic shift

Temasek’s portfolio has grown by S$121 billion since 2019, representing a remarkable 38.7% increase from the S$313 billion reported that year to today’s S$434 billion1.

This growth coincides with a dramatic increase in investment activity, more than doubling from S$24 billion deployed in 2019 to S$52 billion in 20251.

The shift toward larger investment volumes reflects Temasek’s response to evolving market conditions, particularly its focus on resilient market leaders that can weather economic uncertainty.

This investment acceleration stands in contrast to 2019, when divestments (S$28 billion) exceeded investments (S$24 billion), highlighting a strategic pivot from portfolio consolidation to aggressive growth1.

Temasek’s increasing emphasis on alternative assets, infrastructure, and AI investments demonstrates a clear evolution from their earlier structural trends focus that emphasized demographics and digitalization.

2️⃣ Sovereign wealth funds reposition for geopolitical fragmentation

Temasek’s explicit acknowledgment of geopolitical tensions as a “key risk” reflects a growing recognition among sovereign investors that global economic fragmentation requires portfolio adaptation.

Their strategy of targeting companies with “manageable exposure to trade tensions” and “access to large domestic markets” directly addresses concerns about deglobalization that have intensified since 2019.

This defensive positioning appears in Temasek’s increased geographic diversification, with substantial investment flows to multiple regions rather than concentration in a single market.

The fund’s significant cash position, explicitly highlighted as providing “flexibility to capitalise on market dislocations,” suggests preparation for potential geopolitical or economic shocks rather than fully deployed capital.

Recent Temasek developments

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