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Singapore’s Temasek Holdings is a global investment powerhouse. Its 2025 Annual Review offers valuable lessons. With a net portfolio value of S$434 billion, Temasek’s strategies align with trends shaping the future. This article breaks down Temasek’s approach.
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Temasek’s Financial Snapshot: A Beacon of Stability
Temasek’s portfolio grew to S$434 billion by 31 March 2025. If unlisted assets are marked to market, it’s worth S$469 billion. That’s an uplift of S$35 billion.
Over the past decade, the portfolio increased by S$168 billion. In FY2024/25 alone, Temasek invested S$52 billion and divested S$42 billion.
Its 10-year Total Shareholder Return (TSR) stands at 5%. The 20-year TSR is 7%, and since inception in 1974, it’s an impressive 14%. Dividend income for FY2025 was S$10 billion, with a 10-year average of S$9 billion annually.
What does this mean for Singaporeans? Temasek’s steady growth signals resilience. It shows disciplined investing pays off. Stability matters in uncertain markets.
Key Financial Highlights
| Metric | Value |
|---|---|
| Net Portfolio Value | S$434 billion |
| Marked-to-Market Value | S$469 billion |
| 10-Year TSR | 5% |
| 20-Year TSR | 7% |
| FY2025 Dividend Income | S$10 billion |
| Total Debt | S$20.7 billion |
| Liquidity Balance | S$124.2 billion |
Portfolio Composition: Diversification Done Right
Temasek’s portfolio is balanced. It holds 51% in liquid, listed assets and 49% in unlisted assets. Singapore-based Temasek Portfolio Companies (TPCs) make up 41%. These include household names like DBS, Singtel, and Singapore Airlines.
Global direct investments, such as Nvidia and Tencent, account for 36%. Partnerships and funds, like LeapFrog and Brookfield, comprise 23%. Asset managers oversee more than S$90 billion.
Spreading investments across sectors and regions cushions volatility. Temasek backs both local giants and global innovators. This balance fuels growth while managing exposure.
Portfolio Composition Analysis:
- Liquid & Listed Assets: 51%
- Unlisted Assets & Funds: 49%
Sector and Geographic Allocation: Where Money Meets Opportunity
Temasek allocates its portfolio strategically. Transportation and industrials, as well as financial services, each represent 22%. Telecom, media, and tech (TMT) follow at 20%.
Consumer and real estate hold 13%, while life sciences and agri-food are at 7%. Multi-sector funds make up 9%. Geographically, Singapore dominates at 52%. The Americas contribute 19%, while China and India account for 11% and 5%, respectively.
What’s the implication? Singapore remains a safe bet. Yet, global exposure taps into high-growth markets. Temasek’s allocations reflect confidence in both stability and innovation.
| Sector | Percentage |
|---|---|
| Transportation & Industrials | 22% |
| Financial Services | 22% |
| Telecom, Media & Tech | 20% |
| Consumer & Real Estate | 13% |
| Life Sciences & Agri-Food | 7% |
| Multi-Sector Funds | 9% |
Riding Thematic Trends: Future-Proofing Wealth
Temasek aligns with four key trends: digitisation, sustainable living, the future of consumption, and longer lifespans.
These themes guide its investments. For instance, stakes in Nvidia and Microsoft reflect digitisation. Investments in Aira and Amogy support sustainable living. This forward-thinking approach keeps Temasek ahead.
Sustainability and ESG: Investing with Purpose
Temasek takes sustainability seriously. It uses an internal carbon price of US$65/tCO₂e, set to rise to US$100 by 2030.
It earmarked S$100 million for climate action. In FY2025, it invested S$4 billion in companies like Aira and Amogy. These moves align with global ESG (Environmental, Social, Governance) standards.
Major Investments: Learning from the Giants
Temasek’s stakes in companies like DBS (28%), Singtel (51%), and CapitaLand (100%) show confidence in Singapore. Global bets include Nvidia, Microsoft, and BlackRock (3%). These choices blend local strength with global growth.
Key Investments
| Company | Stake | Sector | Country |
|---|---|---|---|
| DBS Group | 28% | Financial Services | Singapore |
| Singtel | 51% | Telecom, Media & Tech | Singapore |
| CapitaLand Group | 100% | Consumer & Real Estate | Singapore |
| Nvidia | <1% | TMT | USA |
| BlackRock | 3% | Financial Services | USA |
Credit Profile: A Lesson in Prudence
Temasek’s debt is low at S$20.7 billion. That’s just 5% of its net portfolio value. Its liquidity balance is robust at S$124.2 billion. Interest expenses are only 5% of dividend income. With Moody’s Aaa and S&P AAA ratings, Temasek is financially sound.
Cash reserves ensure flexibility during downturns. Temasek’s prudence is a model for all.
Leadership Transition: Stability in Change
Outgoing Chairman Lim Boon Heng shared his final message in the 2025 Review. Teo Chee Hean will take over on 9 October 2025.
This smooth transition reflects Temasek’s stability. For Singaporeans, it signals continuity. Your investments in Temasek-linked companies remain secure.
What This Means for Singaporeans
Temasek’s success benefits Singapore. Its S$434 billion portfolio supports national stability. Dividends fund public initiatives, indirectly boosting your quality of life.
For retirees, Temasek’s approach offers a blueprint for secure wealth-building. Entrepreneurs can draw inspiration from its global and sustainable investments. Singapore’s economy thrives when you align with these strategies.
Conclusion:
Temasek’s 2025 Review is more than numbers. It’s a guide for building wealth. Diversify like Temasek. Embrace future trends. Keep debt low.
Whether you’re a white collar professional, retiree, or entrepreneur, these lessons apply. Start small, think long-term, and invest with purpose. Your financial future awaits.
References: Temasek Review 2025
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