Temasek's Portfolio Value Reaches Record High Amid Global Tensions

Temasek's annual report is released amidst rising geopolitical uncertainty, with US President Donald Trump imposing tariffs on Asian countries like Japan, South Korea, Malaysia, and Thailand. These tariffs are set to take effect on Aug 1.

Temasek has been actively rebalancing its portfolio and enhancing resilience in response to the current environment. The company acknowledges that geopolitical tensions pose a significant risk that could impact global growth.

During the financial year ending Mar 31, Temasek made investments totaling S$52 billion and divested S$42 billion, resulting in a net investment of S$10 billion compared to the previous year's net divestment of S$7 billion. The company focuses on investing in market leaders with stable cash flows and earnings, while managing exposure to trade tensions.

CEO Dilhan Pillay highlighted the challenges posed by a multipolar world and the ongoing climate crisis. Temasek remains vigilant about the uncertainties in the global landscape and adopts a pragmatic approach to navigate through them.

Regarding the performance of Singapore-based listed companies in its portfolio, Deputy CEO Chia Song Hwee emphasized the importance of meeting set targets rather than predicting share prices. The market response is based on companies' ability to achieve their goals.

Temasek is one of the entities whose returns contribute to the government's annual Budget. Under the Net Investment Returns Contribution framework, Singapore can utilize up to half of the expected investment returns from Temasek, GIC, and the Monetary Authority of Singapore.

According to the source: CNA.