DBS, Singtel help lift Temasek's portfolio to record S$434 billion
'Their robust returns have uplifted our portfolio value and provided liquidity for our investment activities,' said Lim Ming Pey, chief of staff at Temasek's executive office.
The state investor's portfolio also received a boost from its direct investments in China, the US and India.
This year's NPV marks a S$45 billion increase from the S$389 billion recorded in the previous financial year, and surpasses the previous high of S$403 billion posted in FY2022.
Temasek's NPV climbs further to S$469 billion when the value of its unlisted assets is marked to market.
The figures were unveiled on Wednesday (Jul 9) at the launch of the annual Temasek Review report, which covers Temasek's performance overview, performance highlights as well as its group financial summary for the latest financial year.
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Temasek's returns, and those from sovereign wealth fund GIC and the Monetary Authority of Singapore, account for the second-biggest source of funding for Singapore's Budget in the form of Net Investment Returns Contribution (NIRC). For the financial year ended Mar 31 2024, the NIRC was about S$24 billion.
Temasek delivered a one-year total shareholder return (TSR) of 11.8 per cent for FY2025, a sharp increase from 1.6 per cent the year before and its strongest one-year return in four years.
However, Chia Song Hwee, the deputy chief executive officer of the state investor, stressed that short-term performance was largely influenced by market volatility.
Temasek noted its longer-term TSRs, which it considers a better reflection of its investment performance, remained resilient.
Its 10-year TSR came in at 5 per cent, down slightly from 6 per cent the previous year as figures from 2015, which was a strong year, dropped out from the measurement period. Meanwhile, the 20-year TSR remained unchanged at 7 per cent when compared with FY2024.
Overall, Temasek ended the financial year in a net cash position. The state investor noted that this gives Temasek the 'flexibility to capitalise on market dislocations and emerging opportunities'.
Household names among top performers
As at Mar 31, 2025, the bulk of Temasek's portfolio, or 41 per cent, consists of its Singapore-based portfolio companies. These are companies that Temasek holds direct investments in.
The rest of Temasek's portfolio comprises global direct investments (36 per cent); and investments in funds, partnerships with other investors, and asset management companies (23 per cent).
Some of its direct investments are in established or emerging market leaders that generate stable cash flows and earnings with manageable exposure to trade tensions. Examples include Indian snack company Haldiram's, French renewable energy producer Neoen, and China's largest restaurant operator Yum China.
Temasek's investment partnerships also include its participation in the AI Infrastructure Partnership established by BlackRock, Global Infrastructure Partners, Microsoft, and MGX Fund Management.
Household names such as DBS, Singtel and ST Engineering were among the top performers in Temasek's Singapore-based portfolio companies in the past year.
Local bank DBS saw its share price rise more than 20 per cent in the past year, while telco Singtel gained around 40 per cent. Defence technology company ST Engineering nearly doubled in value over the same period.
Temasek's chief financial officer Png Chin Yee attributed the strong performance not only to favourable market conditions, but also a 'multi-year effort' by their management to keep their businesses relevant.
'Our (Temasek) teams have also worked very closely with the boards and management (of the portfolio companies) on a range of issues,' added Png. These issues included strengthening their business foundation and setting longer-term financial plans.
Building resilience
Even as Temasek turned in a record year, NPV can fluctuate over the year due to market volatility. This is why Temasek aims to build a portfolio that can be resilient across economic cycles over the long term, said Png.
She also flagged potential headwinds in the year ahead. Png noted that some of its Singapore-based portfolio companies may face pressure from falling interest rates.
To that end, Temasek is working closely with its portfolio companies to ensure that they maintain strong balance sheets. Some ways it does so is through stress tests to assess which companies need more capital in the face of external shocks, and engaging companies ahead of their debt maturity.
Companies themselves are also taking proactive steps. For instance, DBS is ramping up its non-interest income streams to cushion the impact of falling rates, said Png.
Geographically, Singapore continued to anchor Temasek's portfolio, accounting for 27 per cent. The Americas, including the US, made up 24 per cent, while its exposure to China stood at 18 per cent. Its allocation to Europe was 12 per cent.
Looking ahead, Temasek's CEO Dilhan Pillay, said that global uncertainty and artificial intelligence will 'transform and disrupt' many industries in this decade. The climate crisis also continues to be an existential threat to humanity.
'As an organisation, we will continue to adapt and retool to seize opportunities in the evolving business and investment landscape, actively managing our exposures in our three portfolio segments to enhance resilience and deliver sustainable returns over the long term,' he added.
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