Temasek Holdings is mulling one of its biggest overhauls in years, potentially reorganising the firm into three investment vehicles in a bid to boost returns and efficiencies, according to people familiar with the matter.
Under the proposal still being discussed at senior levels, Singapore’s state-owned investor could divide its business into three arms. One would focus on Temasek’s biggest domestic holdings such as Singapore Airlines, and another would oversee largely foreign investments.
A third unit would include all of Temasek’s fund investments, said the people, who asked not to be identified discussing a private matter.
The move, which remains fluid and subject to change, would fundamentally restructure the 51-year-old investment giant amid rising pressure to deliver higher returns and streamline its operations.
While Temasek’s net portfolio value hit a record high of $434 billion as of March 31, its 10-year total shareholder return of 5% — a compounded and annualised measure that includes dividends — just matched that of its larger but more conservative Singaporean peer GIC.
It underperformed the MSCI World Index, which returned an annualised 10% in the decade through March 2025.
See also: Local ‘stalwarts’ help lift Temasek’s portfolio value to a record $434 bil
Temasek is currently run in a conventional manner, with different executives responsible for investing across various assets and geographies, such as real estate or China. If the reorganisation proceeds, it would enable key executives to better focus their attention on improving the firm’s performance and efficiency, the people said.
Temasek didn’t immediately respond to a request for comment.
See also: Temasek’s global direct investments make up 36% or $156.24 bil of record NPV
A shift could be announced in coming months, though the plan could be deployed sooner, the people said. Temasek’s new chairman, Teo Chee Hean, is set to start on Oct 9, after joining as deputy chairman in July.
Singapore’s Formula One Grand Prix in early October, where Temasek typically sponsors a corporate suite, is seen as a good opportunity to explain the changes to partners and stakeholders, one of the people said.
Under some of the iterations being discussed, Temasek’s investments with external managers, such as Avanda Investment Management, would be reorganised and potentially placed under Seviora Group — a wholly-owned asset manager that Temasek established in 2020.
Seviora currently acts as the holding company for investment units including Fullerton Fund Management, Azalea Investment Management and SeaTown Holdings International.
Starting next month, Seviora will be led by Gabriel Lim, a longtime public servant and a former permanent secretary of Singapore’s Ministry of Trade and Industry. Lim joined Temasek in October as its joint head of corporate strategy.
Temasek, led by CEO Dilhan Pillay, already divides its net portfolio value in a similar manner.
Singapore-based Temasek Portfolio Companies, which include most of the local firms, made up 41% of the portfolio as of March. Global Direct Investments accounted for 36% and “Partnerships, Funds, and Asset Management Companies” stood at 23%, according to comments made during the firm’s 2025 review.
See also: Temasek spins off private credit platform Aranda, eyeing ‘mid-market’ US, Europe firms
The move would also elevate several key executives to senior roles overseeing each new unit, the people said. Aside from Seviora’s Lim, other executives mooted to run the new divisions include CFO Png Chin Yee, and Nagi Hamiyeh, the head of Europe, Middle East and Africa, who has moved to the Paris office.
Chart: Bloomberg
Read about Temasek's FY2025 performance:
- Local ‘stalwarts’ help lift Temasek’s portfolio value to a record $434 bil
- Temasek’s global direct investments make up 36% or $156.24 bil of record NPV
- Temasek spins off private credit platform Aranda, eyeing ‘mid-market’ US, Europe firms
- SIA’s record Scope 1, 2 emissions keep Temasek’s FY2025 portfolio emissions flat y-o-y
- Temasek CSO discusses goal of improving portfolio performance, reducing emissions
