Latest news with #MartinSoong
CNBC
09-07-2025
- Business
- CNBC
Singapore state investor Temasek is rethinking defense as a strategic ESG bet
Defense stocks are booming — and according to one of Asia's biggest investors, allocating capital to the sector doesn't mean having to abandon ESG initiatives. Speaking to CNBC's Martin Soong on Wednesday, Rohit Sipahimalani, chief investment officer at Singapore's state investment fund Temasek, said his team were looking at opportunities in the European defense sector. "Defense is clearly an area where there's going to be a lot of capital spent, and it's an area we are looking to see what opportunities there are," he said. European defense stocks hit a record high on Wednesday, with the Stoxx Europe Aerospace and Defense index jumping around 0.8%. The index has gained close to 54% so far this year, with some companies in the sector more than doubling in value. Temasek's net portfolio value reached a record high of 434 billion Singapore dollars ($338.9 billion) in the year to March 31, up 45 billion Singapore dollars from the previous year. The fund says it applies an Environmental, Social, and Governance (ESG) framework to its entire investment process . Asked on Wednesday if investing in defense contradicts that mandate, Sipahimalani said Temasek would consider carefully whether any potential defense investment aligns with its wider policies. "If you look at defense, it's an issue of national sovereignty right now," he said. "So just like we talk about sovereignty in terms of food security or energy security, I think defense security is a critical part of that. We would invest in companies that are in compliance with the UN treaty on nuclear non-proliferation, invest in companies that are in compliance with [the] laws of Singapore and generally the markets they operate in, and we would look at each one on a case-by-case basis." Defense stocks used to be excluded from many ESG portfolios due to ethical concerns over how companies' products were used by military customers. But as profits soar , orders pile up and European governments plan to drastically increase defense spending , there has been a shift in how willing some ESG-focused fund managers are to increase their exposure to the industry. "I think it would be unreasonable to say, in the context of the world today that companies should not be investing in defense, because I think it's become it's as much a part of in fact, security and sovereignty is as a part, as much a part of ESG as anything else," Sipahimalani told CNBC in Wednesday's interview.
CNBC
09-07-2025
- Business
- CNBC
Temasek's portfolio scales new peak even as divestments hit over 2-decade high
Singapore state investment company Temasek Holdings' net portfolio value soared to a record high of 434 billion Singapore dollars ($324 billion) for its financial year ended March. That's up SG$45 billion from a year ago, a more than 11% gain year on year. The firm attributed the increase largely to the strong performance of its listed Singapore-based companies, as well direct investments in China, the United States and India. Temasek is a major shareholder in Singapore companies such as DBS, CapitaLand and Singapore Airlines. On a mark to market basis, Temasek's net portfolio value would be SG$469 billion, with a SG$35 billion value contribution from its unlisted portfolio. The firm said that it has been "actively rebalancing" its portfolio "amidst a changing macroeconomic environment," making SG$52 billion of investments and divestments of SG$42 billion over its financial year. That is the largest investment amount since 2022, and the largest divestment amount in more than two an interview with CNBC's Martin Soong Wednesday, Rohit Sipahimalani, CIO of Temasek International, said "part of it was just us trying to reshape our portfolio into the direction that we wanted to be over the next few years, to be more resilient in the environment we're in."Temasek said geopolitical tensions remain a key risk, which will dampen global growth, and added that "despite heightened trade and geopolitical uncertainties, we continue to hold a constructive outlook on investment opportunities." Notably, the firm said that the U.S. remains a key investment destination, adding that it is the largest destination for its capital, thanks to its strong business fundamentals, deep capital markets and a culture of accelerative innovation."We do see bright spots such as the U.S.' world-class capabilities in AI, which will have transformative impact across all sectors." Temasek is also of the view that the risks around immigration, tariffs, and fiscal tightening have likely peaked, but said it is still "watchful" when it comes to future tariff developments. While the firm did not give exact figures for its portfolio allocation into the United States, 24% of its underlying country exposure is to the Americas, up from 22% the year before. Temasek also slightly increased its exposure to India to 8% of its portfolio, up from 7%. In contrast, exposure to China and the Asia-Pacific region dipped slightly, by 1% each, as did its exposure to Europe, the Middle East and Africa. The firm said China's growth target "could be challenging" to achieve, given global tensions, trade uncertainties, and weaker consumption. However, it sees "positive signs" such as stronger government spending and support for consumption, and also expressed belief in the longer-term prospects of China. "We see opportunities in the green economy and life sciences innovations, and also in leading domestic brands which continue to scale and grow in a resilient manner," Temasek said.
CNBC
04-07-2025
- Business
- CNBC
Squawk Box Asia tests Baidu AI Video Generator real-time
China's search giant Baidu tracking Alphabet's and Microsoft's footsteps with the launch of its own AI video generator called MuseSteamer. CNBC's Squawk Box Asia anchors Chery Kang and Martin Soong tested the app on the show.
CNBC
04-07-2025
- Business
- CNBC
U.S.-China trade truce: chip design software and jet engine makers among the early beneficiaries
CNBC's Squawk Box anchors Martin Soong and Chery Kang talked about the U.S. lifting curbs on chip design firms to export software to China as tensions eased between the two countries.
CNBC
03-07-2025
- Business
- CNBC
U.S. seals trade deal with Vietnam ahead of July 9 deadline
CNBC's Squawk Box Asia anchors Martin Soong and Chery Kang talked about the U.S.-Vietnam trade deal that halved tariff on Vietnamese goods to 20%, less than half of the initial rate of 46%.
