Singapore Temasek Holdings Investment

Temasek Reports $6 Billion Loss

Singapore state-owned investor Temasek reported a net loss of $6 billion for the fiscal year ending in March. Temasek put the loss due to global economic and geopolitical challenges impacting investment activities. The company revealed a negative annual return of minus 5.07% in Singapore dollar terms. In comparison, the company gained a positive return of 5.81% in the previous year. Temasek attributed the losses to downturns in equity markets and the adoption of new accounting principles in 2018. Despite the net loss, the company stated that its portfolio has been recovering from the lows experienced during the COVID-19 pandemic.

Bad Investment in Cryptocurrency

Temasek finally addressed its ill-fated investment in cryptocurrency company FTX. It confirmed a write-down of its entire $275 million stake following the collapse of FTX. The investment team conducted an internal review, resulting in reduced compensation for the team and senior management. Temasek acknowledged the risk involved in investing in such companies and expressed disappointment over the situation of fraud.

Temasek’s net portfolio value decreased to SGD 382 billion ($287 billion). In contrast, it reported a record SGD 403 billion in the previous year. Singapore remained the top investment destination, accounting for 28% of its portfolio, followed by China at 22% and the Americas at 21%. Its focus on Asia remains strong, with 63% of its holdings based in the region. In China, it has investments in companies such as Alibaba Group, Tencent Holdings, Didi Global, and Ant Group. Despite regulatory challenges faced by these companies, Temasek sees the recent fine imposed on Ant Group as a positive development that may mark the end of its regulatory woes.

Temasek looking to invest in India

Looking ahead, Temasek plans to increase its focus on India and Southeast Asia. It is considering the attractive investment opportunities in these regions due to strong economic fundamentals and favorable demographics. In India, Temasek has made new investments in companies like Country Delight and acquired a stake in Manipal Health Enterprises. It has also invested in Vietcombank in Vietnam and Waresix, a digital truck brokerage platform in Indonesia.

Temasek maintains a cautious investment stance given the challenging macroeconomic environment but remains ready to increase investments in a market correction, leveraging its strong liquidity position. Temasek’s sole shareholder is the Singapore Ministry of Finance.

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