June 15, 2024

New Malaysia Times

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Temasek ‘s net portfolio at S$381 bln for FY21

temasek

SINGAPORE, July 13 — Singapore’s state investment company, Temasek Holdings (Temasek), has reported a record-breaking net portfolio value (NPV) of S$381 billion for the financial year ended March 31, 2021 (FY21), S$75 billion higher compared to FY20.

In Temasek Review 2021, its annual report which was released today, the firm described FY21 as “an active year” despite the COVID-19 pandemic lockdowns and travel restrictions, adding that it had invested to stimulate innovation and growth, repositioning its portfolio for a changing world.

“Our world has changed. In the post-COVID era, it is not enough to bounce back to ‘business as usual’,” said Temasek chairman, Lim Boon Heng.

He emphasised that governments, businesses and communities must pull together and bounce forward into a climate-friendly norm for better lives and more sustainable livelihoods.

temasek

Temasek’s one-year total shareholder return (TSR) for FY21 stood at 24.53 per cent.

Since its inception in 1974, Temasek has recorded an annualised 14 per cent compounded TSR over 47 years, while its 20-year and 10-year TSRs were 8.0 per cent and 7.0 per cent, respectively, compounded annually.

“As a provider of catalytic capital, Temasek can help companies thrive and tackle the global challenges of our time.

“We will deploy financial capital to stimulate innovation and growth; develop human capital to uplift capabilities and enhance potential; enable natural capital and foster sustainable solutions; and seed social capital to transform lives for a more inclusive and resilient world,” said Temasek International chief executive officer, Dilhan Pillay.

In FY21, Temasek invested S$49 billion and divested S$39 billion — record-breaking numbers on both counts.

The investment holding firm remains anchored in Asia based on its exposure to underlying assets, with China and Singapore remaining as its two largest countries of exposure at 27 per cent and 24 per cent, respectively.

Its exposure in the Americas (20 per cent) and Europe, Middle East and Africa (12 per cent) is mostly through its direct investments.

The Americas accounted for the largest share of new investments made by Temasek during the year, followed by Singapore and China.

Meanwhile, the technology, financial services, industrials and energy sectors continued to see significant investment activities by Temasek.

The financial services as well as the telecommunications, media and technology sectors remained as the top two largest sectors in its investment portfolio at 24 per cent and 21 per cent, respectively.

However, the compositions have changed significantly over the last decade, partly driven by digitisation.

Headquartered in Singapore, Temasek has 13 offices in nine countries around the world: Beijing, Hanoi, Mumbai, Shanghai, Shenzhen and Singapore in Asia; and London, Brussels, New York, San Francisco, Washington DC, Mexico City, and Sao Paulo outside Asia.

BERNAMA