Temasek will set up three wholly-owned entities to manage its three distinct portfolio segments, for better focused management.
The three segments are global direct investments (GDIs); Singapore-based Temasek portfolio companies (TPCs); and partnerships, funds and asset management companies (PFAs).
These three segments have an approximate distribution of 40-40-20 for GDIs, TPCs and PFAs respectively. As at March 31, GDIs accounted for 36% of Temasek’s total portfolio value, while TPCs comprised 41% and PFAs, 23%.
Photo: Temasek
According to Temasek, the move comes amid a rapidly changing world with rising geopolitical tensions and changes to the rules-based order.
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The entities — named Temasek Global Investments (TGI), Temasek Singapore (TSG) and Temasek Partnership Solutions (TPS) — will manage the GDI, TPC and PFA portfolios respectively with effect from April 1 next year.
TGI’s investment mandate is in global companies. Key international names which Temasek has a stake in include Adyen, Betashares, BlackRock and Tencent. These GDIs are established and emerging market leaders that are aligned to the four structural trends of digitisation, sustainable living, the future of consumption and longer lifespans.
Their names under the portfolio include “resilient compounders” that can deliver stable returns and investments with higher expected returns across the sectors and markets Temasek focuses on. In 2025, the value of GDIs within Temasek’s portfolio increased to 36% from 8% in 2004.
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TSG will focus on enhancing the value of Temasek’s TPCs, which are deemed to be the group’s long-term investments and include familiar, locally listed companies such as DBS Group Holdings and Singapore Telecommunications. Temasek typically has a minimum stake of 20% in these TPCs, which have an aggregate revenue of about $200 billion.
Finally, TPS will focus on allocating Temasek’s capital to invest in funds and build strategic relationships with these funds and other investors. It will also work with Seviora Holdings, which will be the main asset management platform for Temasek, to deepen relationships with these partners. According to Temasek, its asset management companies (AMC) have over $90 billion of assets under management (AUM) as at March 31.
It adds that TPS will enable the group to scale its capital and tap on opportunities including offering capital solutions such as private equity, private credit, public market investments, and tailored financing options.
Seviora’s CEO, Gabriel Lim, will work with TPS to undertake a strategic review of the group’s existing AMCs and explore growing new ones. Lim joined Seviora on May 1 as CEO designate and will become CEO on Sept 1, after outgoing CEO Jimmy Phoon retires on Aug 31. Before joining Seviora, Lim was joint head of corporate Strategy at Temasek.
Temasek International (TI) will continue to house the firm’s group and corporate functions that provide “enterprise-wide governance, strategic, and operational support” to its portfolio segments.
Each year, Temasek reports its total net portfolio value. It has not said if it will also report the individual performances of the three entities. “Since we started publishing Temasek Review in 2004, we have been disclosing more information every year with increasing granularity for people to construct a portfolio and to have an idea of the range of outcomes that will come about from that,” says Dilhan Pillay, executive director and CEO of Temasek Holdings and Temasek International. “We will continue to move in this direction.”
Leadership changes
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Temasek also announced that Chia Song Hwee, currently deputy CEO of TI, will be appointed co-CEO with effect from Oct 1.
Chia will work with Pillay to position the firm for the new global environment and effect the transition.
In addition, Pillay will be appointed chairman of the new wholly-owned entities — TI, TGI, TSG and TPS — while Chia will be appointed CEO of TGI and deputy chairman of TI, TSG and TPS.
Nagi Hamiyeh, currently head of Europe, Middle East & Africa at Temasek, will be concurrently made president of TGI. Png Chin Yee, chief financial officer of Temasek, will double-hat as president of TSG while Lee Theng Kiat will step down as chairman of TI.
Temasek Holdings chairman Lim Boon Heng says that the group’s portfolio has “evolved and grown significantly” over the last two decades. “As we continue our journey, these changes will enable Temasek to navigate and operate effectively, positioning it to be future-ready,” he adds.
Pillay notes that Temasek must remain “agile” in a bid to “sense” the pathways ahead and what could possibly be around the corner. In addition, the group must “adapt to the emerging realities, and perform with resilience in an ever-changing landscape”.
“This next step in our T2030 strategy will position us strongly for growth, by enabling us to stay laser-focused on scaling our three segments and building a resilient and forward-looking portfolio,” he adds.
