Temasek’s net portfolio value grows 10.5% to S$518 billion; Mideast conflict dampens gains
Strong performance by Singapore-based listed companies and gains from key divestments boosted Temasek’s portfolio.
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SINGAPORE: Temasek Holdings’ net portfolio value increased by 10.5 per cent from a year ago to hit S$518 billion (US$401 billion) as of Mar 31 this year, the state investor announced on Wednesday (Jul 8).
Amid global uncertainties arising from the Iran war, the 2026 growth was slower than the 11.9 per cent increase from 2024 to 2025. Its net portfolio value last year was S$469 billion on a mark-to-market basis.
The growth was driven largely by the strong performance of Singapore-based listed companies in Temasek’s portfolio, as well as gains from divestments, despite ongoing volatility.
“We’re not simply in a VUCA (volatility, uncertainty, complexity and ambiguity) world, we are in a polycrisis world,” said Temasek Holdings chief executive officer Dilhan Pillay Sandrasegara in a video address.
The present environment is the most complex that Temasek has seen in five decades, but the company was able to continue the momentum that was built over the past few years, he said.
“We saw a rebound in China. India has done very well for us, although the last year has been challenging because of exchange rate volatility,” Mr Pillay said.
The company’s performance was tempered by the conflict in the Middle East, he added.
Up to the end of February, returns in Temasek’s public markets’ portfolio were “very acceptable”, he said.
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“Our NPV (net portfolio value) would have been about 2 per cent higher if not for the impact of these events on public markets,” he said.
Mr Pillay noted that public market valuations bounced back in April and May.
“The vast majority of losses was recovered, which gives us confidence that our public markets strategies remain relevant for longer-term portfolio performance,” he said.
ACTIVE YEAR OF INVESTMENTS
More than 40 per cent of Temasek’s portfolio is made up of Singapore-based companies including DBS, Singtel and Singapore Airlines.
Key divestments by Temasek include the sale of Dutch company Axia Vegetable Seeds and Schneider Electric India.
It also divested its controlling stake in US-headquartered Global Health Exchange but has a continuing interest in the business.
The company invested S$51 billion and divested S$31 billion, making a net investment of S$20 billion.
In the near-term, the firm intends to increase its investments in artificial intelligence, core-plus infrastructure and private credit.
Core-plus infrastructure refers to investments in energy-transition assets and digital infrastructure that typically have slightly higher returns than traditional infrastructure projects.
Temasek’s one-year total shareholder return was 10.5 per cent in Singapore dollar terms, and 14.8 per cent in US dollar terms.
The strength of the Singapore dollar had reduced the one-year total shareholder return figure by around 2 percentage points, Temasek said.
The five-year shareholder return was 4.6 per cent, weighed down by headwinds in China’s capital markets from 2021 to 2024.
In the longer term, the 20-year total shareholder return was 6.8 per cent, down from 7.4 per cent in 2025, while the 10-year shareholder return was 7.1 per cent, up from 5.8 per cent last year.
This is the first year that Temasek has fully transitioned to mark-to-market valuation of its unlisted investments, which means that the value these investments are adjusted to the current market value. On a book value basis, its net portfolio value would be S$486 billion.
GLOBAL OUTLOOK
Looking ahead, Temasek said it remains confident in Singapore’s resilience despite global uncertainty and energy-related disruptions.
The country is well positioned with strong fundamentals and policy flexibility, said Temasek.
The US remains the largest destination of capital for the company’s global direct investments.
“We see attractive opportunities given its leadership in innovation, particularly across the AI value chain, supported by deep public and private capital markets,” the company said, adding that it will continue to be disciplined on valuations and risk.
Asked about the weakening of the US dollar, Temasek International chief investment officer Rohit Sipahimalani acknowledged the issues, but said that if company earnings are growing and the economy is growing, reasonable returns can be expected.
He told reporters during a media briefing that there is “very strong momentum” in earnings growth, and the US remains an important market.
“We’ve been allocating about 50 per cent of our capital there every year, and you can see it’s been inching up as a share of our total portfolio,” he said.
Temasek’s share of investments that are in the Americas grew to 26 per cent this year, up from 24 per cent last year. Its exposure to China dipped from 18 per cent in 2025 to 17 per cent in 2026, while India investments also decreased from 8 per cent to 7 per cent.
China’s exports have been strong, but domestic consumption remains uneven, said Temasek, adding that it is committed as a long-term investor.
The low consumption trend is persisting in part because of continued issues in China’s real estate market, said Mr Chia Song Hwee, chief executive officer of Temasek Global Investments.
“Those are somewhat structural, and therefore we can’t invest (by) assuming that it will reverse itself,” he said.
As such, Temasek is seeking to invest in areas that are not dependent on consumer spending or the real estate market, added Mr Chia.
The company sees “compelling opportunities” in areas where innovation is accelerating, such as biotech, robotics, AI-related technologies and advanced manufacturing.
Temasek said it sees positives on India’s structural growth outlook despite near-term equity volatility and energy-related pressures.
It noted India’s large consumer market, infrastructure development and growing middle class, and said it is focused on capturing opportunities in consumer, financial services and healthcare.
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