Temasek reported a Net Portfolio Value (NPV) of S$434 billion for the financial year ended 31 March 2025, up S$45 billion from a year ago. This increase was largely due to the strong performance of our listed Singapore-based Temasek Portfolio Companies (TPCs) and direct investments in China, the US, and India. On a mark to market basis, our NPV as at 31 March 2025 would have been S$469 billion, reflecting a value uplift of S$35 billion from our unlisted portfolio.

Our 20-year and 10-year Total Shareholder Return (TSR) remained resilient at 7% and 5% respectively. Metrics such as our NPV and longer-term 20-year and 10-year TSRs are more indicative of our performance² as an investor, aligning with our mandate to deliver sustainable returns over the long term.

We ended the year in a net cash position, which gives us flexibility to capitalise on market dislocations and emerging opportunities.

Building a Resilient and Forward-Looking Portfolio

Our portfolio is well diversified across geographies and sectors, comprising three segments: Singapore-based TPCs form 41% of our portfolio value as at 31 March 2025, while Global Direct Investments account for 36%, and Partnerships, Funds, and Asset Management Companies make up the remaining 23%.

Temasek takes a long-term view on portfolio construction. The three segments reflect our portfolio’s evolution and growth as we implemented various strategies since 2002 to tap new opportunities, diversify exposure, and build portfolio resilience in an ever-changing and volatile global business environment. Today, our three distinct portfolio segments each reflect unique attributes and dynamics. We will continue to leverage our ecosystem and deepen our capabilities to grow these segments, in line with our T2030 goal to build a resilient and forward-looking portfolio.

Sensing the Shifts, Adapting Nimbly

Amidst the changing macroeconomic environment, we have been actively rebalancing our portfolio and strengthening resilience, investing S$52 billion and divesting S$42 billion over the past year. In the last decade, we have invested S$350 billion.

Looking ahead, geopolitical tensions remain a key risk, which will likely dampen global growth. Despite heightened trade and geopolitical uncertainties, we continue to hold a constructive outlook on investment opportunities. The US remains a key investment destination for us, while we continue to maintain a diversified global exposure through our investments primarily in Europe, China, and India.

Enhancing Resilience

We continue to invest in emerging and established market leaders that generate stable cash flows and earnings with manageable exposure to trade tensions — particularly those with access to large domestic markets, resilient supply chains, and strong pricing power. We favour investments that have a steady growth outlook and can deliver returns with a narrower range of outcomes over time. Examples of such investments made over the past year include Haldiram Snacks Food³, Neoen, The Progressive Corporation⁴, and Yum China.

We also prudently de-risk our positions facing structural headwinds and divest to realise gains from earlier investments, recycling capital into more investments which can deliver a higher return over the longer term.

Investing in alternative assets enables our portfolio diversification beyond traditional equities while potentially generating higher risk-adjusted returns. Through our Partnerships, Funds, and Asset Management Companies, we scale our exposure in key areas like private credit and hybrid solutions, private equity funds, as well as liquid alternatives and uncorrelated strategies that include hedge funds, closed block insurance, and royalties. Our allocations to some of these areas can also provide steady cash yields.

Core-plus infrastructure⁵ is an emerging asset class that can provide resilient risk-adjusted returns, alongside steady cash yields. Increased electrification, coupled with rising Artificial Intelligence (AI) data centre demand, has created attractive opportunities in this space. There is also a growing need to replace and modernise ageing infrastructure to drive economic growth. We will deploy capital directly and invest through partnerships, while leveraging the insights from Singapore-based TPCs with deep infrastructure domain expertise such as Keppel, PSA, Sembcorp, and SP Group.

We have been investing across the AI value chain: in leading companies that have reached break-out scale with proven traction; in businesses enabling the broader AI ecosystem, such as data centres; and in innovative early-stage companies. Our multi-pronged approach includes direct investments, such as in hyperscalers as well as in AI applications; building ventures like Aicadium and minden.ai; and strategic fund partnerships, including participation in the AI Infrastructure Partnership⁶ established by BlackRock, Global Infrastructure Partners, Microsoft, and MGX. At the same time, we engage our Singapore-based TPCs, which in aggregate have almost S$200 billion in revenue, on their AI adoption strategies in future-proofing their businesses.

Advancing Sustainability

We remain unwavering in our commitment to sustainability⁷ as an integral part of building a thriving and resilient portfolio over the long term. During the year, we invested S$4 billion in line with the Sustainable Living trend. This included opportunities to invest alongside partners to support the energy transition, such as Brookfield for its Global Transition Fund; and Energy Capital Partners for the acquisition of Atlantica Sustainable Infrastructure, a UK-based clean energy transition company focused on renewable energy. As at 31 March 2025, our portfolio value of investments aligned with this trend was S$46 billion⁸.

In terms of our decarbonisation journey, we continue to strive towards reducing the net carbon emissions attributable to our portfolio to half of its 2010 levels by 2030, with the ambition to achieve net zero by 2050. These targets remain challenging given the concentration of portfolio emissions from companies in hard-to-abate sectors, such as aviation, maritime, power, and utilities. In these sectors, solutions to drive significant emissions reductions, such as Sustainable Aviation Fuel, have yet to be commercialised and scaled for adoption at a competitive cost. For the financial year ended 31 March 2025, both Total Portfolio Emissions⁹ and Portfolio Weighted Average Carbon Intensity¹⁰ remained at 21 million tonnes of carbon dioxide equivalent (tCO₂e) and 92 tCO₂e/S$M revenue respectively. Portfolio Carbon Intensity¹¹ decreased to 63 tCO₂e/S$M portfolio value, from 73 tCO₂e/S$M portfolio value for the previous financial year.

Looking Ahead: Positioned to Thrive

Mr Lim Boon Heng, Chairman, Temasek Holdings, commented, “As Singapore turns 60 this year, we reflect on its journey from a small country without natural resources to the forward-looking nation it is today. Like Singapore, Temasek and our Singapore portfolio companies have benefitted from globalisation, expanding our footprint regionally and beyond. Despite increasing global uncertainties, we must remain steadfast in our commitment to building a purpose-driven institution and constructing a portfolio that delivers sustainable returns over the long term. Temasek will thrive when each generation of the Board and management abides by our Purpose and stays guided by our values, so every generation prospers.”

Mr Dilhan Pillay, Executive Director and Chief Executive Officer, Temasek Holdings, said, “Against the backdrop of a multipolar world, uncertainty is exacerbated by the AI-driven revolution that will transform and disrupt many industries in the decade ahead and beyond, while the climate crisis continues to be an existential threat to humanity. At Temasek, we remain clear-eyed about the risks ahead and continue to navigate the ambiguities that arise in an ever-changing global environment with a pragmatic approach. As an organisation, we will continue to adapt and retool to seize opportunities in the evolving business and investment landscape, actively managing our exposures in our three portfolio segments to enhance resilience and deliver sustainable returns over the long term.”