Temasek Holdings (Private) Limited, or simply Temasek, is a
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
an state holding company owned by the
Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in
assets under management (AUM) as of December 2022. Its net portfolio is US$287 billion (S$403 billion) as of 2022, with S$37 billion divested and S$61 billion invested during the year.
Its one-year
total shareholder return (TSR) was 5.8%, with longer term 10 and 20-year TSRs at 7% and 8% respectively, compounded annually. Its TSR since inception was 14%, compounded over 48 years.
Headquartered in Singapore, it has 12 offices in 8 countries around the world, including in Beijing, Hanoi, Mumbai, Shanghai, Shenzhen; and London, Brussels, New York, San Francisco, Washington, D.C. and Mexico City outside Asia. It is an active shareholder and investor, with four key structural trends guiding its long term portfolio construction – Digitisation, Sustainable Living, Future of Consumption, and Longer Lifespans. Temasek's portfolio covers a broad spectrum of sectors. Its key focus investment areas include Consumer, Media & Technology, Life Sciences & Agri-Food, and Non-bank Financial Services.
Temasek has held overall corporate global credit ratings of “Aaa/AAA” by rating agencies
Moody's
Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internationa ...
and
Standard & Poor's respectively since its inaugural credit ratings in 2004. It has also attained perfect quarterly scores on the Linaburg-Maduell Transparency Index, a measure of the openness of government-owned investment funds. Temasek is primarily anchored in Asia, but with a global portfolio, with a 60% underlying exposure to developed economies.
While Temasek is largely attributed as being a
sovereign wealth fund
A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as ...
(SWF), there are major differences as it invests mostly in equities, is the outright owner of many assets and companies, and pays taxes like other commercial investment firms.
In addition to Temasek, the Government of Singapore also owns
GIC Private Limited, a traditional SWF which manages about US$744 billion (S$1.006 trillion) of assets as of 2022 and the compulsory pension program
Central Provident Fund
The Central Provident Fund Board (CPFB), commonly known as the CPF Board or simply the Central Provident Fund (CPF), is a compulsory comprehensive savings and pension plan for working Singaporeans and permanent residents primarily to fund thei ...
with asssets of US$397 billion (S$540 billion), giving a total AUM of US$1.64 trillion.
Status
Temasek is a company incorporated in Singapore, and operates under the provisions of the Singapore Companies Act. It is neither a government agency nor a
statutory board. Like any other commercial company, Temasek pays
tax
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
es that contributes to government revenue in the countries it operates in, distributes dividends to its shareholder and has its own board of directors and a professional management team. Its sole shareholder is Singapore's Ministry of Finance.
Temasek is designated a Fifth Schedule entity under the
Constitution of Singapore
The Constitution of the Republic of Singapore is the supreme law of Singapore. A written constitution, the text which took effect on 9 August 1965 is derived from the Constitution of the State of Singapore 1963, provisions of the Federal Const ...
, which imposes certain safeguards to protect the government's
past reserves. For instance, the approval of the
President of Singapore
The president of Singapore is the head of state of the Republic of Singapore. The role of the president is to safeguard the reserves and the integrity of the public service. The presidency is largely ceremonial, with the Cabinet led by the prime ...
is required for any transaction which is likely to result in a draw-down of Temasek's cash
reserves. The president also has the right to appoint, terminate, or renew the members of Temasek's board of directors. In most other respects, however, Temasek operates as an independent commercial investment holding company.
In a 2009 speech,
Ho Ching
Ho Ching (; born 27 March 1953) is a Singaporean businesswoman who has been serving as the director of Temasek Trust since 2021. She is the wife of incumbent Prime Minister Lee Hsien Loong.
Ho joined Temasek Holdings as a director in January ...
, Temasek Holdings' Executive Director and CEO, said that the company had made an effort to instill discipline and professionalism, and to be tested and measured by providing public markers of performance. She noted that Temasek's bonds spreads and credit ratings have been regularly and independently monitored as public markers of Temasek's financial position and credit risks. Temasek had also openly and accurately disclosed its financial information through its annual report (although Ho said that, as a private company, it was not legally obliged to do so).
History
At the point of
Singapore's independence in August 1965, the
Government of Singapore had ownership or joint ownership of various local companies, such as
Malaysia-Singapore Airlines (later split up into
Malaysia Airlines
Malaysia Airlines Berhad (MAB; ms, Penerbangan Malaysia Berhad), formerly known as Malaysian Airline System (MAS; ), and branded as Malaysia Airlines, is the flag carrier airline of Malaysia and a member of the Oneworld airline alliance. (Th ...
and
Singapore Airlines
Singapore Airlines ( abbreviation: SIA) is the flag carrier airline of the Republic of Singapore with its hub located at Singapore Changi Airport. The airline is notable for highlighting the Singapore Girl as its central figure in corporat ...
) and the Singapore Telephone Board (which became
Singapore Telecommunications
Singapore Telecommunications Limited, commonly known as Singtel, is a Singaporean telecommunications conglomerate and one of the four major telcos operating in the country. The company is the largest mobile network operator in Singapore with ...
). As part of its push for local and foreign private investment in sectors such as manufacturing and shipbuilding, the government's
Economic Development Board
The Economic Development Board (EDB) is a statutory board under the Ministry of Trade and Industry of the Government of Singapore that plans and executes strategies to sustain Singapore as a leading global hub for business and investment.
Hi ...
(EDB) also bought minority stakes in a variety of local companies. During the first ten years after independence, the government acquired or established several companies, such as the
Keppel Corporation
Keppel Corporation (also known as Keppel Corp) is a Singaporean conglomerate headquartered in Keppel Bay Tower, HarbourFront. The company consists of several affiliated businesses that specialises in offshore & marine, property, infrastructure ...
(originally Keppel Shipyard, taken over from the
Royal Navy
The Royal Navy (RN) is the United Kingdom's naval warfare force. Although warships were used by English and Scottish kings from the early medieval period, the first major maritime engagements were fought in the Hundred Years' War against ...
after the British military withdrawal from Singapore),
ST Engineering (originally a weapon manufacturer set up to supply the
Singapore Armed Forces
The Singapore Armed Forces (SAF) are the military services of the Republic of Singapore, responsible for protecting and defending the security interests and the sovereignty of the country. A military component of the Ministry of Defence (MIND ...
), and the shipping company
Neptune Orient Lines
Neptune Orient Lines Limited (NOL) was a Singaporean container shipping company. It was founded in 1968 as Singapore's national shipping line, but was later sold as a subsidiary to French shipping company CMA CGM in 2016. On 1 October 2020, NOL ...
.
On 25 June 1974, Temasek was incorporated under the Singapore Companies Act
to hold and manage the assets previously held directly by the Singapore government, named for an
early settlement on the island. The goal was for Temasek to own and manage these investments on a commercial basis,
allowing the
Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
and the
Ministry of Trade and Industry A Ministry of Trade and Industry, Ministry of Commerce, Ministry of Commerce and Industry or variations is a ministry that is concerned with a nation's trade, industry and commerce.
Notable examples are:
List
*Algeria: Ministry of Industry and ...
to focus on policymaking.
In February 2020, Temasek announced a company-wide wage freeze and voluntary pay cuts for senior management in part to help fund community programs aimed at alleviating the impact of
COVID-19
Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quickly ...
.
On 1 October 2021,
Dilhan Pillay Sandrasegara
Dilhan Pillay Sandrasegara (born 1963/1964) is a Singaporean business executive and lawyer who has been serving as the chief executive officer of Temasek Holdings since 2021.
Education
Sandrasegara attended Anglo-Chinese School (Independent) bef ...
, the current chief executive officer of Temasek International (TI), succeeded
Ho Ching
Ho Ching (; born 27 March 1953) is a Singaporean businesswoman who has been serving as the director of Temasek Trust since 2021. She is the wife of incumbent Prime Minister Lee Hsien Loong.
Ho joined Temasek Holdings as a director in January ...
as executive director and chief executive officer of Temasek Holdings.
Investments
Temasek's initial portfolio of S$354 million comprised shares previously held by the Singapore Government, including a
bird park, a hotel, a shoemaker, a detergent producer, naval yards converted into a ship repair business, a start-up airline, and an iron and steel mill.
2000s
Temasek's
2006 acquisition of
Shin Corporation
Intouch Holdings PCL ( th, บริษัท อินทัช โฮลดิ้งส์ จำกัด (มหาชน); formerly Shin Corporation) is a Thai holding company which focuses on telecommunication industry. It is the parent ...
, owned by the family of then Thai prime minister
Thaksin Shinawatra
Thaksin Shinawatra ( th, ทักษิณ ชินวัตร; ; ; Chinese: 丘達新; cnr, Taksin Šinavatra; born 26 July 1949), is a Thai businessman, politician and visiting professor. He served in the Thai Police from 1973 to 1987, ...
, was particularly controversial, with protestors burning effigies of Lee and Ho on the streets of Bangkok.
[Thailand: Protesters burn images of Lee, wife. Bangkok Post](_blank)
18 March 2006. The deal was a factor in exacerbating the
Thai political crisis, which eventually led to the downfall of Thaksin and a review of the transaction's legality. The
military junta
A military junta () is a government led by a committee of military leaders. The term ''junta'' means "meeting" or "committee" and originated in the national and local junta organized by the Spanish resistance to Napoleon's invasion of Spain in ...
that overthrew Thaksin later tried unsuccessfully to force Temasek to divest a large part of its investment in Shin Corp. As of 2015, Temasek's stake in
Intouch Corporation (as Shin Corporation was renamed) had reduced to 42%. In 2016, Temasek sold a further 21% stake in Intouch Holdings, the Thai telecoms conglomerate formerly known as Shin Corp.
2010s
In June 2018, Temasek invested S$340 million in a minority stake in UST Global, a digital technology services company. The size of the stake was not disclosed.
Temasek purchased 30 per cent of Haldor Topsoe's shares in March 2019. The investment company was selected in recognition of the value that it would add through its deep insights and connections in Asian growth and other emerging markets, according to the Danish engineering firm. The transaction price was not disclosed.
Beginning in 2015, Temasek began making large investments in agricultural and agricultural-related companies and ventures.
2020s
In August 2020, Temasek Holdings added a 3.9 per cent stake in
BlackRock Inc, worth about US$3.5 billion, becoming one of its largest shareholders. According to people familiar with the matter, Temasek was one of several players that bought the money manager's shares when PNC Financial Services Group Inc. sold a US$14 billion stake earlier in the year.
In November 2020 Temasek with Creadev led a EUR140 million series C financing of French biotechnology company
InnovaFeed.
In 2021, Temasek invested in cryptocurrency exchange
FTX. Following FTX's collapse in November 2022, Temasek wrote down the value of their $275 million investment in FTX to zero.
In February 2022, Temasek led a $200 million fundraising round for a Singaporean cryptocurrency financing company, Amber Firm.
In May 2022, Temasek was finalizing talks to lead a $50 million financing round for DotPe, an Indian startup backed by
Google
Google LLC () is an American Multinational corporation, multinational technology company focusing on Search Engine, search engine technology, online advertising, cloud computing, software, computer software, quantum computing, e-commerce, ar ...
.
In August 2022, Temasek leads a $100 million financing round for
Animoca Brands
Animoca Brands (Animoca Brands Corporation Ltd) is a Hong Kong-based game software company and venture capital company founded in 2014 by Yat Siu.
It was listed on the Australian Securities Exchange from 23 January 2015 to 9 March 2020.
Nota ...
.
Sustainability
As a company, Temasek has been
carbon neutral
Carbon neutrality is a state of net-zero carbon dioxide emissions. This can be achieved by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society (the transition to the "p ...
since 2020. The firm has publicly stated that its goal is to reduce the net carbon emissions attributed to its entire portfolio to half of 2010 levels by 2030. It aims to achieve net zero carbon emissions by 2050.
See also
*
Government of Singapore Investment Corporation
GIC Private Limited is a sovereign wealth fund in Singapore that manages its foreign reserves. Established by the Government of Singapore in 1981 as the Government of Singapore Investment Corporation, its mission is to preserve and enhance the ...
(GIC)
References
External links
*
{{Authority control
Government-owned companies of Singapore
Investment companies of Singapore
Financial services companies established in 1974
Singaporean companies established in 1974
Sovereign wealth funds