Temasek portfolio tops SGD 452b on tech momentum

Singapore’s Temasek Holdings reported a 9% year-on-year increase in portfolio value to SGD 452 billion for FY2025, reflecting robust exposure to India and artificial intelligence (AI). The sovereign investor delivered an 11.2% annual portfolio return, underpinned by structural positioning toward high-growth, technology-intensive sectors across Asia.

Temasek deployed SGD 12 billion into Indian infrastructure — encompassing logistics, renewable energy, and digital utilities — alongside USD 800 million into AI platforms spanning semiconductors, enterprise software, and data infrastructure. The shift marks a deliberate recalibration from mature assets toward emerging-market convergence and digital industrialization.

India’s 7% GDP growth trajectory, coupled with the USD 15 trillion global economic potential of AI by 2030, anchors the fund’s forward allocation strategy. For the first time, Temasek’s India exposure equals its China holdings at SGD 54 billion each, symbolizing both diversification and confidence in South Asia’s long-term productivity narrative.

Financially, the portfolio maintains strong resilience. Debt stands at just 8% of net asset value, ensuring balance-sheet flexibility amid volatile global rates. Dividend income rose to SGD 17.6 billion, while sustainable investments reached 32% of assets under management (AUM), advancing toward a 35% target by FY2027.

The performance reinforces Singapore’s role as Asia’s sovereign-capital hub. Institutional peers such as GIC and Malaysia’s Khazanah are expected to emulate the strategy, deepening regional capital flows into infrastructure and digital ecosystems. Market reactions were favorable: Indian infrastructure equities rose 3%, and SGX-listed AI ETFs recorded 2% inflows in the days following the announcement.

From a policy perspective, Temasek’s pivot aligns with Singapore’s national economic priorities — channeling capital toward technology, sustainability, and inclusive growth. The fund’s sustainability framework, integrating carbon-adjusted valuation metrics and climate scenario modeling, continues to define best practices among global sovereign investors.

Strategically, the reallocation marks a broader transformation in Asian capital markets. Traditional reliance on property, commodities, and passive fixed income is giving way to productive digital and infrastructure assets that promise higher total-factor productivity. Temasek’s disciplined approach to governance, coupled with transparent performance reporting, enhances its benchmark status within the global sovereign wealth community.

If the fund sustains 10%+ annualized returns and pushes sustainable assets beyond one-third of total portfolio value by FY2027, it could set a new template for sovereign wealth management in the digital-transition era — balancing returns, resilience, and responsibility.

The signal to markets is clear: Asia’s financial architecture is evolving from asset preservation to innovation-led allocation. Temasek’s dual bet on India and AI positions Singapore at the center of the next global investment cycle, bridging technology and development finance across emerging economies.