Temasek portfolio reaches $289 bln, up 5.8%

Temasek recorded a net profit of S$10.6 billion ($7.6 billion) for the year, moderating from $56.5 billion reported last year, as it booked mark-to-market losses. As an indication of how volatile these mark-to-market changes can be, Temasek’s net profit for FY2020 was $8.8 billion.

The holding remains anchored in Asia, which represented 63% of its portfolio in the fiscal year. Singapore and China continue to be Temasek’s two largest countries by exposure 27% of its portfolio. In China, it continued to invest in the new economy sectors focusing on new consumption patterns,  sustainability and innovation.

In Singapore, Temasek continued to invest in and engage our portfolio companies as they prepare for the future  and enhance their long term resilience.

In 2021, it participated in Singapore Airlines’ S$6.2 billion mandatory convertible bond issue, which helped to strengthen its balance sheet and position it for the resumption of  global travel.

The rest of Asia represented 14% of Temasek’s portfolio in FY2022, up from 13% in the preceding year. The Americas represent 21% of its portfolio, up from 20% the year prior.

Australia and New Zealand remain unchanged in their weightage, as have Europe, Middle East and Africa — the regions represent 4% and 12% of Temasek's portfolio respectively.

It has been pushing the sustainability agenda aggressively. Its internal carbon price of $42 per tonne of carbon dioxide equivalent has been lifted to $50 this year. It expects to increase this price progressively to $100 by the end of this decade.

By 2030, Temasek aims to halve net carbon emissions by its portfolio from 2010 levels to 11 million tCO2e. It also aims to reach net zero carbon emissions by 2050.

“We have invested into opportunities in the AI & Digitisation, Blockchain, Cybersecurity, and Sustainability  Solutions sectors. In addition, we engage with our portfolio companies on their efforts in assessing potential  disruption risks and identifying transformation opportunities,” said Mr Dilhan Pillay, Executive Director and Chief Executive Officer of Temasek Holdings.

Temasek will focus on  Consumer, Media & Technology, Life Sciences & Agri-Food as well as Non-bank Financial Services  companies. Together, investments in these sectors constituted 33% of its overall portfolio in 2022, a  significant increase from their 5% share in 2011, it said in a recent report.

Since 2004 when entering Vietnam, Temasek has invested in several fields such as agriculture, real estate, consumption, technology, logistics and financial services, with total direct investment capital more than $1 billion dollars.

In the country, the firm focused investments are companies that are driving the structural trends. These structural trends include Digitization, Sustainable Living, Future Consumption, and Longer Lifespan.

These structural trends are always interconnected across sectors and geographies and continue to evolve through economic cycles.

“There are positive factors in Vietnam's macroeconomic environment favorable for investment promotion. We expect that this year, Vietnam will have a strong cyclical recovery by easing restrictions on domestic movement amid rising vaccination rates,” commented Temasek representative.

Over the years, Temasek has invested in Golden Gate, an enterprise specializing in operating leading restaurant chains in Vietnam, Scommerce, a leading freight company in Vietnam, Vinhomes, the largest real estate developer in the country, and VNG, a leading technology & media company and developer of a popular social networking and messaging app.