Singapore's Temasek mulls major overhaul to boost returns

South China Morning Post

a day ago

Singapore 's Temasek Holdings is mulling one of its biggest overhauls in years, potentially reorganising the firm into three investment vehicles in a bid to boost returns and efficiencies, according to people familiar with the matter.
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Under the proposal still being discussed at senior levels, Singapore's state-owned investor could divide its business into three arms. One would focus on
Temasek 's biggest domestic holdings, such as
Singapore Airlines , and another would oversee largely foreign investments. A third unit would include all of Temasek's fund investments, said the people who asked not to be identified, discussing a private matter.
The move, which remains fluid and subject to change, would fundamentally restructure the 51-year-old investment giant amid rising pressure to deliver higher returns and streamline its operations.
While Temasek's net portfolio value hit a record high of S$434 billion (US$338 billion) as of March 31, its 10-year total shareholder return of 5 per cent – a compounded and annualised measure that includes dividends – just matched that of its larger but more conservative Singaporean peer GIC Pte. It underperformed the MSCI World Index, which returned an annualised 10 per cent in the decade through March 2025.
Temasek is currently run in a conventional manner, with different executives responsible for investing across various assets and geographies, such as real estate or
China . If the reorganisation proceeds, it would enable key executives to better focus their attention on improving the firm's performance and efficiency, the people said.
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Temasek didn't immediately respond to a request for comment.