The issue arises when questions are raised about what Temasek is ultimately meant to do. At times, the state investor appears to carry a wide range of responsibilities. Besides helping to fund public expenditure through astute investments, Temasek, via its various linked entities, has done work that the average sovereign wealth fund wouldn’t do, such as sourcing and distributing masks during the Covid-19 pandemic or deploying staff to help manage the revitalisation of the Singapore Zoo.
As the local stock market was stuck in a multi-year rut two years ago, there were calls for Temasek to step in and inject funding — a role eventually taken on by the Monetary Authority of Singapore. Alternatively, Temasek could have helped jump-start interest by launching a “big bang” IPO of one of its major unlisted portfolio companies, such as Mapletree Investments, PSA International or SP Group. On its own website, Temasek included the 1993 IPO of Singapore Telecommunications — fondly remembered as the last big bang — as the first milestone in the growth journey of its portfolio.
For FY2025 ended March, Temasek reported a record net portfolio value (NPV) of $434 billion, an increase of 11.6% y-o-y. That year’s surge, a relatively positive one, was attributed largely to the strong performance of its local listed portfolio companies, including DBS Group Holdings and Singapore Technologies Engineering. Its international direct investments in China, the US and India helped as well.
However, critics observe that over the longer term, the picture is not as rosy. According to Global SWF rankings in 2025, both Temasek and GIC were ranked in the bottom half among 50 major sovereign investors based on their 10-year annualised returns.
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Since its inception in 1974, Temasek’s TSR has been 14%, though growth has slowed in recent years as its asset base expanded, with 10- and 20-year returns at 5% and 7% respectively. In contrast, the S&P 500’s 10-year annualised return is roughly 13.75% (excluding dividends), and its 20-year annualised return is 9.37% per Bloomberg data.
Given its mandate to deliver sustainable long-term returns for the country and its role in contributing to the national budget, would it be more prudent to simply put the money into global index funds? True, but some would argue that Temasek’s value lies in its ability to make well-placed bets on the hottest start-ups and long-term positions in private markets that indices can’t capture.
With effect from April 1, Temasek has reorganised itself into three distinct entities: one focused on its Singapore portfolio companies, another on global investments spanning start-ups to listed corporations, and a third comprising fund platforms similar to BlackRock. This structure is expected to better position Temasek to balance tactical and strategic investing, support sustainable growth, and expand the roles it can play.
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As a national fund managing taxpayers’ money, market observers are calling for more detailed disclosures in Temasek’s reporting. Its key portfolio companies are Singapore-listed and already required to disclose data such as board and CEO remuneration.
If the pattern holds, Temasek is expected to release its annual report around this time of year. It may also be an opportunity for the state investor to lay out its roadmap and show how, in its latest incarnation, it can be greater than the sum of its parts.
