Temasek's portfolio value grows to record S$434 billion in 2025, up S$45 billion from 2024

Singapore's state investment arm Temasek reported a Net Portfolio Value (NPV) of S$434 billion in 2025, experiencing a S$45 billion increase compared to last year.

The profitable financial year, which ended on Mar. 31, 2025, was largely credited to the performance of listed Singapore-based Temasek Portfolio Companies (TPCs) and direct investments in China, the U.S., and India.

Portfolio consists of three segments

Temasek's portfolio comprises three segments: Singapore-based TPCs, Global Direct Investments (GDIs), and Partnerships, Funds, and Asset Management Companies (PFAs).

Singapore-based TPCs form 41 per cent of Temasek's portfolio value as at Mar. 31, 2025, while GDIs account for 36 per cent, and PFAs make up the remaining 23 per cent.

Temasek said the segments reflect its portfolio’s evolution and growth as it implemented various strategies since 2002 to tap new opportunities, diversify exposure, and build portfolio resilience in an ever-changing and volatile global business environment.

The company's 20-year and 10-year Total Shareholder Return (TSR) was at 7 per cent and 5 per cent, respectively.

Temasek aims to continue growing its GDI segment, investing in focus sectors such as non-bank financial services, tech, life sciences, and consumer, and also growth equity.

This includes expanding its Asset Management ecosystem with new platforms such as InnoVen, in venture debt, and Azalea, in private equity funds.

For the coming decade, Temasek aims to pivot its investment strategies to focus more on resilience and liquidity, as well as capture opportunities in emerging asset classes such as core-plus infrastructure, AI, and alternative assets.

Investments in core-plus infrastructure and AI

The company stressed that core-plus infrastructure is an asset class that can provide resilient, risk-adjusted returns and stable cash yields.

This follows continuous efforts Temasek has built since its inception, with its TPCs, such as PSA and Sembcorp, operating critical infrastructure in Singapore.

However, the company continues to look out for opportunities within the space, such as directly through its TPCs that have deep infrastructure domain expertise, through partnerships with key global investors, and investing through funds such as Brookfield and GIP.

Earlier this June, Temasek announced it had joined the AI Infrastructure Partnership established by BlackRock, GIP, Microsoft, and MGX from the Middle East.

For AI, the investment firm looks for opportunities across the AI value chain, where it invests directly into companies and categories, as seen in the screenshot below.

The company has also set up AI-related ventures and invests in AI Funds, such as the AI Infrastructure Partnership.

The U.S. remains key investment destination for Singapore

The U.S. remains a key investment destination for Temasek as the company continues to maintain a diversified global exposure through its investments primarily in Europe, China, and India.

Though the company acknowledged being watchful of the Jul. 9 tariff deadline, it remains confident in the U.S. market amid bright spots such as the country's world-class capabilities in AI.

The local investment firm noted China to be its second-largest market outside of Singapore, seeing opportunities in the green economy and life sciences innovations, as well as in leading domestic brands.

It acknowledged that geopolitical tensions remain a key risk, which will likely dampen global growth.

"Amidst the changing macroeconomic environment, we have been actively rebalancing our portfolio and strengthening resilience, investing S$52 billion and divesting S$42 billion over the past year," Temasek said, adding that the company has invested S$350 billion in the last decade.

For Europe, the company looks towards sectors such as industrials and new energy, financial services, and consumer.

Temasek also maintains a positive outlook in India, given the country's strong domestic market, particularly in the consumer, financial services, and healthcare sectors.

Though the near-term economic outlook for Southeast Asia is clouded by some uncertainties—including trade negotiations with the US, and complex domestic and international issues faced by the respective governments—Temasek said it remains committed to the region.

"Our TPCs also see opportunities to invest in Southeast Asia, such as in Vietnam and Malaysia," it noted.

Temasek focuses on building a resilient portfolio in Singapore

Temasek said the company will continue to sense the market and adjust its portfolio allocation towards regions with attractive investment opportunities.

It will focus on building a resilient portfolio in Singapore on two fronts:

1. Continue to actively engage its TPCs to enhance value and future-proof their businesses.
2. Work with like-minded partners and innovators, and create synergistic networks with them to further grow its capital and gain access to innovation.

Outgoing Chairman of Temasek Holdings, Lim Boon Heng, said:

“As Singapore turns 60 this year, we reflect on its journey from a small country without natural resources to the forward-looking nation it is today. Like Singapore, Temasek and our Singapore portfolio companies have benefitted from globalisation, expanding our footprint regionally and beyond."

Lim, who will hand over the Temasek Holdings chairmanship to former Senior Minister Teo Chee Hean on Oct. 9, said that despite increasing global uncertainties, the company must remain steadfast in its commitment to building a purpose-driven institution and constructing a portfolio that delivers sustainable returns over the long term.

Top image courtesy of Temasek.