Latest news with #LimMingPey
Reuters
09-07-2025
- Business
- Reuters
Temasek's portfolio value hits record high; says US risks likely peaked
SINGAPORE, July 9 (Reuters) - Singapore's state investor Temasek reported on Wednesday an 11.6% year-on-year jump in its net portfolio value to a record S$434 billion ($340 billion), and said risks around U.S. immigration, tariff and fiscal tightening policies had likely peaked. U.S. President Donald Trump opened a new phase on Monday in his trade war, telling partners from powerhouse suppliers such as Japan and South Korea to minor players including Malaysia that they face higher tariffs from August 1. "We still have to be watchful of the tariff developments over the next few weeks and months," Lim Ming Pey, Temasek's joint head of corporate strategy, told Reuters in a briefing. Temasek's chief investment officer Rohit Sipahimalani said tariffs were not expected to return to the levels seen on Trump's "Liberation Day" on April 2, while some earlier risks such as fiscal tightening that would slow U.S. growth had eased with the passage of his sweeping tax-cut and spending bill. "Generally speaking, the slowdown in growth that we're seeing right now because of tariff uncertainty, we should see a recovery in growth towards the end of the year, particularly as the Fed cuts rates and more deregulation happens, and there's more clarity around tariffs," Sipahimalani said. "The challenge in the U.S. is valuations." Nevertheless, Lim said Temasek saw "bright spots, such as the U.S.'s world-class capabilities in AI, which will have a transformative impact across all sectors." The U.S. continues to be the largest destination for Temasek's capital, the company said. The Americas made up 24% of its portfolio at the end of its financial year on March 31, versus 22% on the same date a year ago. The rise in Temasek's net portfolio value was the second consecutive annual increase, and largely driven by the strong performance of its listed Singapore-based companies and direct investments in China, India and the United States. Temasek continues to believe in the longer-term prospects of China, Lim said. China is Temasek's third largest market in terms of underlying exposure at 18% as at end-March, after Singapore at 27% and the Americas at 24%. "We see opportunities in the green economy and life sciences innovation, and also in leading domestic brands which continue to scale and grow in a resilient manner," she added. Moving forward, Temasek said it was increasing focus on investing in companies with stable cash flows and earnings, as well as access to large domestic markets that are better shielded from tariffs and geopolitical risks. It is also focusing on infrastructure and artificial intelligence. "We do not only make investments ourselves, we also invest in AI-related funds," Chia Song Hwee, Temasek's deputy CEO, said. Temasek's investments in the AI sector include companies such as Nvidia (NVDA.O), opens new tab, Databricks and Veeam. It recently joined a consortium backed by Microsoft (MSFT.O), opens new tab, BlackRock (BLK.N), opens new tab and tech investment company MGX to invest and expand AI infrastructure, according to BlackRock's investor day presentation slides in June. ($1 = 1.2766 Singapore dollars)
Business Times
09-07-2025
- Business
- Business Times
DBS, Singtel help lift Temasek's portfolio to record S$434 billion
[SINGAPORE] Temasek posted a record net portfolio value (NPV) of S$434 billion for the financial year ended Mar 31, driven by the strong performance of its Singapore-based portfolio companies such as DBS and Singtel . '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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 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.
Yahoo
09-07-2025
- Business
- Yahoo
Temasek's portfolio value hits record high; says US risks likely peaked
By Yantoultra Ngui SINGAPORE (Reuters) -Singapore's state investor Temasek reported on Wednesday an 11.6% year-on-year jump in its net portfolio value to a record S$434 billion ($340 billion), and said risks around U.S. immigration, tariff and fiscal tightening policies had likely peaked. U.S. President Donald Trump opened a new phase on Monday in his trade war, telling partners from powerhouse suppliers such as Japan and South Korea to minor players including Malaysia that they face higher tariffs from August 1. "We still have to be watchful of the tariff developments over the next few weeks and months," Lim Ming Pey, Temasek's joint head of corporate strategy, told Reuters in a briefing. Temasek's chief investment officer Rohit Sipahimalani said tariffs were not expected to return to the levels seen on Trump's "Liberation Day" on April 2, while some earlier risks such as fiscal tightening that would slow U.S. growth had eased with the passage of his sweeping tax-cut and spending bill. "Generally speaking, the slowdown in growth that we're seeing right now because of tariff uncertainty, we should see a recovery in growth towards the end of the year, particularly as the Fed cuts rates and more deregulation happens, and there's more clarity around tariffs," Sipahimalani said. "The challenge in the U.S. is valuations." Nevertheless, Lim said Temasek saw "bright spots, such as the U.S.'s world-class capabilities in AI, which will have a transformative impact across all sectors." The U.S. continues to be the largest destination for Temasek's capital, the company said. The Americas made up 24% of its portfolio at the end of its financial year on March 31, versus 22% on the same date a year ago. CHINA The rise in Temasek's net portfolio value was the second consecutive annual increase, and largely driven by the strong performance of its listed Singapore-based companies and direct investments in China, India and the United States. Temasek continues to believe in the longer-term prospects of China, Lim said. China is Temasek's third largest market in terms of underlying exposure at 18% as at end-March, after Singapore at 27% and the Americas at 24%. "We see opportunities in the green economy and life sciences innovation, and also in leading domestic brands which continue to scale and grow in a resilient manner," she added. Moving forward, Temasek said it was increasing focus on investing in companies with stable cash flows and earnings, as well as access to large domestic markets that are better shielded from tariffs and geopolitical risks. It is also focusing on infrastructure and artificial intelligence. "We do not only make investments ourselves, we also invest in AI-related funds," Chia Song Hwee, Temasek's deputy CEO, said. Temasek's investments in the AI sector include companies such as Nvidia, Databricks and Veeam. It recently joined a consortium backed by Microsoft, BlackRock and tech investment company MGX to invest and expand AI infrastructure, according to BlackRock's investor day presentation slides in June. ($1 = 1.2766 Singapore dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
