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Singapore, July 9, 2026 – Singapore’s state investor Temasek has reported a sharp rise in its portfolio value, reaching a record S$518 billion as of March 31, 2026.
The increase of S$49 billion from the previous year underscores the firm’s resilience in navigating volatile markets and geopolitical uncertainty.
The company delivered a 20-year total shareholder return (TSR) of 6.8%, while its one year TSR stood at 10.5% in Singapore dollar terms and 14.8% in US dollar terms, boosted by currency strength.
Temasek’s Singapore portfolio continues to anchor its holdings, accounting for 43% of total exposure and delivering an 8.1% internal rate of return over the past decade.
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The United States has emerged as Temasek’s largest investment destination, representing 26% of its portfolio.
The firm has deepened its exposure to the innovation economy, with investments in AI leaders Anthropic and OpenAI, alongside strong earnings growth in US equities.
In contrast, Temasek’s China exposure has declined to 17%, down from 27% in 2021.
Structural challenges in real estate and consumption weighed on returns, yet the firm still committed US$10 billion in new Chinese investments last year.
These were directed toward renewables, AI infrastructure, and consumer brands such as Luckin Coffee, reflecting a selective but strategic approach.
The Middle East also featured prominently in Temasek’s expansion.
Despite a 2% portfolio hit from supply chain disruptions, the firm established a partnership with Abu Dhabi’s L’IMAD and opened a new office in the emirate in 2025, signaling long term confidence in the region’s infrastructure renewal.
Temasek is accelerating its push into private credit, aiming to grow exposure from 2% to 5% of its portfolio within five years.
The asset class is viewed as a alternative, particularly in sectors such as digital infrastructure and real estate, even as US liquidity pressures persist.
At the same time, the firm is sharpening its focus on artificial intelligence and innovation, with plans to raise AI investments to 15% of its portfolio by 2031.
This reflects a conviction that structural growth in AI will underpin long-term returns.
Chief Executive Dilhan Pillay acknowledged the challenges posed by geopolitical shocks but emphasized Temasek’s strategy of building a “quality portfolio that can bounce back.
” Chief Investment Officer Rohit Sipahimalani highlighted the US as an anchor for innovation, while Global Investments CEO Chia Song Hwee pointed to opportunities in Middle East infrastructure despite ongoing conflict.
Temasek’s record-breaking portfolio value demonstrates its ability to adapt to shifting global dynamics.
By reducing reliance on China, expanding into private credit, and betting heavily on AI, the firm is positioning itself for sustained growth.
Its diversified approach anchored in Singapore, expanded in the US, and cautiously extended into the Middle East signals a long term strategy designed to withstand volatility while capturing emerging opportunities.
