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In Singapore, Temasek’s results spark discussion of Chinese investments and Ho Ching
- Even as it feels the sting of the US-China trade war, the state investment firm is staying true to its strategy of betting big on new trends
- Its focus on China has mirrored Singapore’s transformation from an export-led economy to one focusing on domestic consumption and services
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When Temasek Holdings announced its results early last month, there was no hiding the stark fact that Singapore’s state investment firm was feeling the full effects of the ongoing US-China trade war.
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Shareholder returns plunged to 1.49 per cent, down from 12 per cent year on year, and its portfolio value in Singapore dollar terms rose to S$313 billion (US$230.1 billion) as it made divestments of S$28 billion, compared with new investments of S$24 billion.
Beyond these top-line figures, however, Temasek appears to be following its time-tested strategy of betting big on new trends rather than sticking to old economy behemoths.
Overall, just over half of its investments are in financial services; the telecommunications, media and tech sectors; and life sciences and agribusiness. In its investments in China and India, the emphasis has been on tech companies and life sciences.
Chinese investments make up 26 per cent, or S$81.4 billion, of Temasek’s total global portfolio, while Indian investments make up 5 per cent of the total. For the first time, Chinese investments are on par with Singaporean investments.
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