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Temasek sees investment opportunities in India, South-east Asia amid geopolitical shifts

Temasek sees investment opportunities in India, South-east Asia amid geopolitical shifts
The investment company also remains committed to China. Read more at straitstimes.com.

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Temasek's Investment Strategy Shifts Amid Geopolitical Risks

Temasek, a Singapore-based investment firm, has been adjusting its investment strategy in response to geopolitical shifts and tensions over the past five years. The company's deputy chief executive, Chia Song Hwee, emphasized the need to assess geopolitical events and potential risks before making new investments. As a result, Temasek has become more selective in its investments, particularly in sectors crucial to national security.

Despite these challenges, Temasek sees investment opportunities in India, with its portfolio exposure to the country growing to 7 per cent in the 2024 financial year. The company is also committed to China, focusing on domestic demand-driven sectors like biotechnology and robotics. However, its exposure to China dropped to 19 per cent in FY2024, down from 22 per cent in the previous year.

Temasek's net portfolio value improved to $389 billion in FY2024, but its 20-year total shareholder return (TSR) fell from 9 per cent to 7 per cent. The company's underlying assets are primarily in the Asia-Pacific, with Singapore accounting for 27 per cent. Temasek is also scaling up its exposure to South-east Asia and Japan, with a focus on logistics and data centers in Japan.

Overall, Temasek remains optimistic about investment opportunities in the region, despite the challenges posed by geopolitical risks and tensions.

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