Search company, investor...

Predict your next investment

Temasek company logo
Public-Private Partnership
temasek.com.sg

Investments

561

Portfolio Exits

127

Funds

6

Partners & Customers

10

About Temasek

Temasek is a global investment firm concentrated principally in Singapore, Asia, and the OECD economies. Temasek's investment strategies center on four themes - Transforming Economies, Thriving Middle Class, Deepening Comparative Advantages, and Emerging Champions - with its portfolio of companies coming from nine major sectors: financial services; telecommunications and media; transportation and logistics; real estate; infrastructure, industrial and engineering; energy and resources; technology; life sciences; and consumer and lifestyle.

Headquarters Location

60B Orchard Road, #06-18 Tower 2 The Atrium at Orchard

238891,

Singapore

+65 6828 6828

Are you an investor?
Submit your portfolio details now to be considered in our investor rankings.

Expert Collections containing Temasek

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Find Temasek in 3 Expert Collections, including Sovereign Wealth Funds.

S

Sovereign Wealth Funds

22 items

The world's most active sovereign wealth funds investing in private tech companies.

S

Synthetic Biology

382 items

G

Game Changers 2018

20 items

Latest Temasek News

Singapore Reserves Revealed interview with PM Lee: “Without them, GST would have to be 19%”

Aug 17, 2023

Disclaimer: Any personal opinions expressed below belong solely to the author. Channel NewsAsia published yesterday (August 16) a three-part interview with Prime Minister Lee Hsien Loong on YouTube , as a part of documentary Singapore Reserves Revealed, in which he speaks about the inner workings of reserve management — what constitutes them, how they are spent, or whether they can be touched at all. I encourage everybody to watch it, of course, but given how frequently I write on the topic myself, I thought it would be useful for those who prefer to read to focus on the most important points concerning every Singaporean directly: What constitutes reserves and how big are they? Can we spend more money from them? Don’t we have enough already? What reserves? Part of the challenge in discussing the topic of reserves in Singapore is that they consist of many different types of assets, which aren’t used in the same way. In the broadest sense, it’s everything that the country has that it can lean on in the time of need — cash or equities managed by the likes of Temasek or GIC, foreign currencies and gold at the Monetary Authority of Singapore (MAS), or real estate and land owned by the government. Image Credit: CNA via YouTube How much money is there? While usual conversations revolve around the assets held by MAS (S$452 billion worth of foreign currencies and gold), Temasek (S$382 billion) and GIC ( unofficially estimated at over S$1 trillion under management, which indirectly includes funds from the Central Provident Fund), Singapore remains resilient in the face of potential severe crisis. This resilience is bolstered by its substantial tangible assets such as land, buildings, ports, airports, and more. The total value of these assets cannot be reliably estimated since if any were to be sold, the circumstances of the sale would affect the end price. Another issue is that, even under normal circumstances, the presented values are not equivalent to how much could actually be used to finance local spending needs. Even financial reserves have different origins which determine how — or even where — they can (or at least should be) be spent. Unlike what many people think, reserves are not a vault full of gold that could, potentially, be drawn from at will. Not quite like Scrooge McDuck. For example, GIC was founded as a manager of excess foreign reserves held by MAS — which means the funds both organisations deal with are not denominated in SGD (so they can’t be spent directly in Singapore). Because the city-state had been so popular with foreign investors for many decades, they needed to exchange their foreign currencies (chiefly USD) into SGD to do business on the island. Those foreign currencies end up with MAS (which issues the SGD) and can be used to control the exchange rate of Singapore dollar versus other currencies (the bank can, for instance, use the USD to buy SGD, to reinforce its value if it feels it’s too low). As Singapore had remained successful for many years, the accumulation of foreign currencies fast outpaced the policy needs of MAS. There was no reason to keep so much of the money in the bank doing nothing, so GIC was formed in 1981 to profitably manage that surplus abroad. But, essentially, these funds are still an extension of foreign reserves and cannot be directly spent in Singapore since they are denominated in currencies of other nations. Any sale of these assets and exchanging them for SGD to finance anything at home would immediately impact the international exchange rates as well. The case isn’t simple even for Temasek, which keeps much of its assets in Singapore (originally all of them, given that it started as a holding manager for GLCs in 1974). While the value of its portfolio has increased by over six times since 1996, unwinding parts of it would often mean selling a stake in local companies — like Singapore Airlines or Singtel. Image Credit: CNA via YouTube So, if you wanted to draw from Temasek’s pool, you might have give up ownership of some of the country’s largest, most successful, but also most economically important enterprises. In essence then, while Singapore has over a trillion SGD worth of reserves managed by GIC, MAS and Temasek, and billions (if not trillions more) in other tangible assets owned by the state, those figures are not really as meaningful to average Singaporeans as this one is: How much can we actually spend? Even today, S$23 billion — or around 20 per cent — in Singapore’s annual budget comes from reserves: Net Investment Returns Contribution (NIRC) to be precise. NIRC equals 50 per cent of average long-term return rate on assets managed by MAS, GIC and Temasek. The remaining 50 per cent is reinvested back for the future. Could Singapore spend more than that? Not really — at least not without undermining long-term financial security of the country. You see, those accessible, liquid reserves only serve their purpose if they at least keep growing at the same pace as the local economy. In the interview, PM Lee explains that GDP and reserves currently expand roughly in line with each other, after subtracting NIRC, which is diverted to the budget. This means that out of four per cent average return on reserves, two per cent is reinvested and it’s a comparable level to roughly two per cent annual growth of GDP for a developed nation that Singapore now is. Image Credit: CNA via YouTube With GDP of over S$500 billion SGD and reserves at MAS, GIC and Temasek worth over S$1 trillion, their proportion to GDP is in the region of 2:1. This means that half of an estimated four per cent annual return on those reserves, amounts to, as I explained, 20 per cent of the annual budget. But if GDP keeps going up and reserves cannot keep the same pace, then a larger proportion would have to be drawn to prop up the economy in case of another crisis such as Covid. A similar fate would await NIRC which, at 3.5 per cent of GDP, is about as big of a source of revenue every year as corporate income tax and larger than personal taxes or GIC. If reserves do not grow in line with GDP, then NIRC’s share would begin to drop, necessitating raising taxes to make up for the shortfall. Image Credit: CNA via YouTube In the absence of reserves, Singapore would have to double its Corporate Income Tax or more than double its income taxes or GST, which PM Lee estimated to be at least 10 percentage points more — not nine per cent, introduced next year, but 19 per cent (comparable to the VAT rates in Europe, for example). In reality, it could be even more than that, since tax revenues tend to drop off as rates are raised, so less money is collected for each subsequent percentage point. In other words, Singapore is already profiting from reserves each year, but objectively speaking, cannot draw any more from them without hurting their purpose. It already is at the reasonable limit. This brings us to the final question: Can we ever have enough? The short answer is no. PM Lee brought up an example of early, pre-independence Singapore budget of 1959, where the deficit was S$14 million. Sounds small today (even if we account for inflation), but it was a lot then. Obviously, if the island had reserves it could draw from, it would not have been as big a problem. Image Credit: CNA via YouTube Most countries solve it by taking on debt. They borrow money and pay interest to lenders just to finance their regular spending. So, not only do they make less than is necessary, but the shortfall is becoming more expensive because of those interest payments. This has become an economic snowball for many nations, which keep borrowing only to run even bigger deficits (as they have to keep paying more in interest), necessitating even more external financing, until they can’t pay their debts anymore and face economic implosion (like several European countries in the aftermath of 2008/09 crisis). No amount of money will ever be enough to protect Singapore from a similar fate. At the very least, as I mentioned before, reserves should keep growing in perpetuity at a pace equal to GDP growth. Ideally, it should be more, so that they become a larger source of revenue in the future. However, building them up today is much harder than it was in the past, when Singapore was a developing nation, quickly catching up to the rest of the world at a pace of eight to 10 per cent annually. Since it started managing its assets so early on, it was able to benefit from huge impact of compounding of high return rates on its various investments — both in and out of the country. However, doing so now would not yield nearly as strong results. It’s not just because Singapore is a mature, developed economy, which can only grow so much each year, but it’s also due to the fact that it’s more difficult to deploy vast sums of money at a high profit. It’s easier to find an opportunity that returns 10 or 20 per cent per annum on an investment of a million dollars than it is for a billion, not to mention hundreds of billions of dollars. This is why, despite having amassed such vast wealth, the job of managing Singapore’s reserves is not — and will not ever — be done. Featured Image Credit: CNA via YouTube

Temasek Investments

561 Investments

Temasek has made 561 investments. Their latest investment was in Dr. Agrarwal Eye Hospital as part of their PIPE - II on August 17, 2023.

CBI Logo

Temasek Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

8/17/2023

PIPE - II

Dr. Agrarwal Eye Hospital

$80M

No

2

8/14/2023

Series A - II

Caelux

$12M

Yes

2

8/8/2023

Series B

Verdagy

$73M

No

1

6/27/2023

Private Equity

Subscribe to see more

$99M

Subscribe to see more

10

6/7/2023

Seed VC

Subscribe to see more

Subscribe to see more

10

Date

8/17/2023

8/14/2023

8/8/2023

6/27/2023

6/7/2023

Round

PIPE - II

Series A - II

Series B

Private Equity

Seed VC

Company

Dr. Agrarwal Eye Hospital

Caelux

Verdagy

Subscribe to see more

Subscribe to see more

Amount

$80M

$12M

$73M

$99M

New?

No

Yes

No

Subscribe to see more

Subscribe to see more

Co-Investors

Sources

2

2

1

10

10

Temasek Portfolio Exits

127 Portfolio Exits

Temasek has 127 portfolio exits. Their latest portfolio exit was Magic Leap on December 26, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

12/26/2022

Corporate Majority

$99M

7

11/16/2022

IPO

$99M

Public

7

8/19/2022

Reverse Merger

$99M

4

8/1/2022

Acquired

Subscribe to see more

$99M

Subscribe to see more

10

4/25/2022

Reverse Merger

Subscribe to see more

$99M

Subscribe to see more

10

Date

12/26/2022

11/16/2022

8/19/2022

8/1/2022

4/25/2022

Exit

Corporate Majority

IPO

Reverse Merger

Acquired

Reverse Merger

Companies

Subscribe to see more

Subscribe to see more

Valuation

$99M

$99M

$99M

$99M

$99M

Acquirer

Public

Subscribe to see more

Subscribe to see more

Sources

7

7

4

10

10

Temasek Acquisitions

19 Acquisitions

Temasek acquired 19 companies. Their latest acquisition was Manipal Hospitals on April 07, 2023.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

4/7/2023

Other

$99M

$301.85M

Corporate Majority

2

3/27/2023

$99M

Acq - Pending

4

1/23/2022

Growth Equity

$99M

$93.25M

Acquired

7

2/2/2021

Other

Subscribe to see more

$99M

Subscribe to see more

10

9/13/2020

Subscribe to see more

$99M

Subscribe to see more

10

Date

4/7/2023

3/27/2023

1/23/2022

2/2/2021

9/13/2020

Investment Stage

Other

Growth Equity

Other

Companies

Subscribe to see more

Subscribe to see more

Valuation

$99M

$99M

$99M

$99M

$99M

Total Funding

$301.85M

$93.25M

Note

Corporate Majority

Acq - Pending

Acquired

Subscribe to see more

Subscribe to see more

Sources

2

4

7

10

10

Temasek Fund History

6 Fund Histories

Temasek has 6 funds, including Altrium Private Equity Fund I.

Closing Date

Fund

Fund Type

Status

Amount

Sources

12/4/2019

Altrium Private Equity Fund I

Fund Of Funds

Closed

$650M

1

10/29/2019

ABC World Asia

Subscribe to see more

Subscribe to see more

$99M

10

2/8/2016

Red Dot Capital Partners

Subscribe to see more

Subscribe to see more

$99M

10

4/23/2014

Astrea II

Subscribe to see more

Subscribe to see more

$99M

10

8/1/2006

India China Pre-IPO Equity Fund

Subscribe to see more

Subscribe to see more

$99M

10

Closing Date

12/4/2019

10/29/2019

2/8/2016

4/23/2014

8/1/2006

Fund

Altrium Private Equity Fund I

ABC World Asia

Red Dot Capital Partners

Astrea II

India China Pre-IPO Equity Fund

Fund Type

Fund Of Funds

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Status

Closed

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Amount

$650M

$99M

$99M

$99M

$99M

Sources

1

10

10

10

10

Temasek Partners & Customers

10 Partners and customers

Temasek has 10 strategic partners and customers. Temasek recently partnered with DBS Bank, and J.P. Morgan on June 6, 2023.

Date

Type

Business Partner

Country

News Snippet

Sources

6/21/2023

Partner

Singapore, and United States

JPMorgan, DBS, Temasek bet big on Asia's blockchain race

Some of the world 's largest financial institutions , like JPMorgan , Singapore 's DBS Bank and Temasek Holdings , have joined forces with regulators in the Asian finance hub to develop a safer and more efficient way for businesses and investors to make deals .

1

11/5/2021

Partner

Singapore

Keppel partners Temasek, Incitec Pivot to explore ammonia supply from Australia; for use as direct fuel, hydrogen carrier

Keppel Infrastructure partners Temasek , Incitec Pivot to explore ammonia supply from Australia ; for use as direct fuel , hydrogen carrier

1

9/30/2021

Partner

United Kingdom

HSBC and Temasek to Support Sustainable Infrastructure Initiatives in Asia

HSBC and Temasek revealed that they 've formed a partnership in order to launch a $ 150 million debt financing platform that 's aimed at supporting sustainable infrastructure initiatives with a special focus on Southeast Asia .

2

5/25/2021

Partner

Singapore, and Indonesia

Subscribe to see more

Subscribe to see more

10

5/20/2021

Partner

United Kingdom

Subscribe to see more

Subscribe to see more

10

Date

6/21/2023

11/5/2021

9/30/2021

5/25/2021

5/20/2021

Type

Partner

Partner

Partner

Partner

Partner

Business Partner

Country

Singapore, and United States

Singapore

United Kingdom

Singapore, and Indonesia

United Kingdom

News Snippet

JPMorgan, DBS, Temasek bet big on Asia's blockchain race

Some of the world 's largest financial institutions , like JPMorgan , Singapore 's DBS Bank and Temasek Holdings , have joined forces with regulators in the Asian finance hub to develop a safer and more efficient way for businesses and investors to make deals .

Keppel partners Temasek, Incitec Pivot to explore ammonia supply from Australia; for use as direct fuel, hydrogen carrier

Keppel Infrastructure partners Temasek , Incitec Pivot to explore ammonia supply from Australia ; for use as direct fuel , hydrogen carrier

HSBC and Temasek to Support Sustainable Infrastructure Initiatives in Asia

HSBC and Temasek revealed that they 've formed a partnership in order to launch a $ 150 million debt financing platform that 's aimed at supporting sustainable infrastructure initiatives with a special focus on Southeast Asia .

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Sources

1

1

2

10

10

Temasek Team

52 Team Members

Temasek has 52 team members, including current Chief Executive Officer, Ho Ching.

Name

Work History

Title

Status

Ho Ching

Chief Executive Officer

Current

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Name

Ho Ching

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Work History

Title

Chief Executive Officer

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Status

Current

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Loading...

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.