The confluence of geopolitics, technology, energy, and business is redefining how the world operates. This is contributing to a period of transition marked by uncertainty, but also by opportunity for those able to adapt thoughtfully.
In an increasingly uncertain and volatile world, I am confident that we will rise to the challenge by acting with clarity amidst complexity and harnessing our collective strengths: to do well, do right, and do good — always doing things today with tomorrow in mind, so every generation prospers.
TEO CHEE HEAN
Chairman, Temasek Holdings
From Our Chairman
Amidst complexity, we act with clarity to deliver good sustainable returns over the long term.
2025 marked an important turning point for the global order. The multilateral system that has supported decades of growth is being challenged by rising populism, nationalism, protectionism, and fragmentation. Long-standing rules and norms have been overturned.
Trade tensions and the use of tariffs are contributing to inflationary pressures and straining the global trading system, affecting economic relationships built over many years. Tensions in hotspots continue and underlying geopolitical differences remain unresolved. In particular, the ongoing conflicts in the Middle East have wide-ranging consequences across energy security and prices, trade flows, fiscal balances, and the broader global economy.
Alongside these developments, the rapid emergence of generative AI is reshaping business models, workforces, and societal resilience.
This confluence of geopolitics, technology, energy, and business is redefining how the world operates. This is contributing to a period of transition marked by uncertainty, but also by opportunity for those able to adapt thoughtfully.
As a global investor with a diverse and growing portfolio, Temasek needs to sense these shifts, adapt nimbly, and thrive over the long term, embracing Complexity with Clarity in our actions.
Portfolio Performance
Against this challenging backdrop, Temasek continued to deliver resilient long-term results. Our performance reflects a considered and disciplined approach to capital allocation — one that harnesses opportunities, while balancing prudence and risk to execute a forward-looking investment strategy aimed at performing through market cycles to deliver good sustainable returns over the long term.
This year marks the full transition in our reporting methodology from book value to mark-to-market (MTM) valuation of unlisted investments1,2. The valuation basis is unchanged for approximately 75% of our portfolio, which comprises listed investments that are valued at market prices, and unlisted funds and co-investments that are already marked to market. The remaining 25% of our portfolio, which consists of our unlisted direct investments, previously reported on a book value basis, will be reported on an MTM basis. This provides a more representative view of our portfolio’s value, better reflects its risk and volatility, and aligns our reporting with global peers.
On an MTM basis, our net portfolio value (NPV) as at 31 March 2026 was S$518 billion3,4, representing a doubling of our portfolio over the past decade.
Our long-term returns remained resilient with 20-year Total Shareholder Return (TSR) at 6.8% and 10-year TSR at 7.1%, demonstrating our portfolio’s ability to perform through market cycles. Five-year TSR was lower at 4.6%, weighed down by headwinds in China’s capital markets from 2021 to 2024.
One-year TSR was 10.5% and our NPV increased by S$49 billion against the last financial year. This was largely due to the strong performance of listed Singapore-based Temasek Portfolio Companies, as well as realised gains from key divestments.
The recent events in the Middle East have impacted the global economy. This resulted in a drawdown of 2% on our NPV in the last month of the financial year ended 31 March 2026, reversing a significant part of earlier gains in our Global Direct Investments portfolio. In addition, the relative strength of the Singapore dollar, which is our reporting currency, against major foreign currency exposures negatively impacted our returns by about two percentage points.
During the financial year ended 31 March 2026, we invested S$51 billion and divested S$31 billion, resulting in a net investment of S$20 billion.
Temasek is a generational investor with a long-term horizon. Our shareholder assesses our performance based on long-term returns. We therefore focus on delivering good sustainable returns over time, with our strategies and portfolio decisions guided by this long-term lens, even as we continue to sharpen our tools and capabilities over the shorter term. Our performance should therefore be assessed over a longer-term horizon rather than on a year-to-year basis, where market volatility remains an inherent risk especially in recent years.
Institutional Update
As our global footprint expanded over the past two decades, our portfolio has also grown in both scale and complexity. Today, we have a diversified and balanced portfolio anchored by three segments: about 40% in Singapore-based Temasek Portfolio Companies (TPCs), 40% in Global Direct Investments (GDIs), and 20% in Partnerships, Funds, and Asset Management Companies (PFAs).
This 40-40-20 distribution was the result of our deliberate long-term investment strategy and capital allocation choices. Over two decades ago, about 90% of our portfolio was concentrated in our TPCs. Guided by our strategic roadmaps, we encouraged our TPCs to venture into the Asia Pacific region and beyond, while we became a more active investor and stepped out into Asia in the 2000s. In the 2010s, we embarked on our strategy to become a global investor and expanded into developed markets such as the US and Europe. By 2018, our portfolio mix had broadly stabilised at this 40-40-20 distribution, giving us a balanced portfolio with long-term resilience.
The three segments in our portfolio have distinct characteristics in terms of strategies, outcomes, and skill sets. As our portfolio evolved, we adapted our organisational structure to better position Temasek to deliver resilient performance. On 1 April 2026, we restructured the management of Temasek’s investment portfolio into wholly-owned entities which abide by the key principle: Temasek continues to operate collectively as OneTemasek.
Our refreshed structure with the three new entities — Temasek Singapore (TSG), Temasek Global Investments (TGI), and Temasek Partnership Solutions (TPS) — sharpens our focus and strengthens accountability across each segment, while enabling disciplined decision-making, effective oversight, and closer alignment between strategy and execution, bringing greater clarity to performance.
TSG focuses on the active portfolio management and stewardship of our TPCs to enhance value and enable them to be globally competitive while staying rooted in Singapore. Our TPCs have an aggregate revenue of approximately S$200 billion and employ more than 400,000 people globally. TGI invests in emerging and established market leaders globally, across a broad range of sectors and geographies, guided by structural trends. TPS focuses on managing capital allocation to funds and building strategic relationships with partners and co-investors, together with Seviora Holdings as our main Asset Management Platform.
Temasek International (TI) is the enabler of TSG, TGI, and TPS. It houses the firm’s group and corporate functions and provides enterprise-wide governance and strategic know-how to the entities in their business transformation.
In Appreciation
On 9 October 2025, I succeeded Lim Boon Heng to become the fifth Chairman of Temasek. On the same day, Temasek Holdings also appointed Tan Chong Meng, who has been a Board member since April 2024, as Deputy Chairman.
On behalf of the Board and the whole Temasek family, I would like to thank Boon Heng, who stepped down from the Temasek Board after serving 12 years as Chairman within his 13-year tenure as a Board Director. He guided Temasek’s global expansion and its contributions to the community, especially during the COVID-19 pandemic, to build a more sustainable and inclusive world. His leadership also led to a strong and trusted tripartite network among Temasek and its portfolio companies, our workforce, and the Government. Boon Heng has accepted Temasek’s invitation to stay on as a Senior Advisor. This will enable the Board and management to tap his extensive network and insights on key issues. I would like to also thank Boon Heng for his help, guidance, and support during my initial months to settle into Temasek and take on this important stewardship responsibility.
I wish to thank Peter Voser who retired from our Board with effect from 1 July 2026 after more than 11 years of service. I am grateful to Peter for agreeing to continue his association with us as non-executive Chairman of Temasek Europe and Chairman of the Temasek European Advisory Panel. We thank him for his significant contributions to our Board deliberations over the years.
Our international and regional advisors for the Americas, Europe, and Southeast Asia have also played an important role in providing insights to guide our investment decisions. I would like to welcome Helle Thorning-Schmidt, former Prime Minister of Denmark, to the Temasek International Panel. We look forward to benefitting from her international leadership and counsel in the years to come.
As we chart the path forward, it is important to remember where we came from. Unlike sovereign wealth funds built on natural resources, Singapore’s reserves are built on the hard work, discipline, and sacrifices of generations of our people. We have to steward Temasek’s assets well as we cannot expect to replenish them by just tapping more natural resources from the ground. Temasek has been able to grow its portfolio significantly over the years because of our shareholder’s enlightened governance approach that provides us with the autonomy to flexibly chart the most appropriate course to deliver good sustainable returns over the long term on a risk-adjusted basis.
I look forward to working with Temasek’s Board, management team, and members of the wider Temasek family to build on the strong foundation laid by those who came before us. As the world becomes more uncertain and volatile, I am confident that we will rise to the challenge by acting with clarity amidst complexity and harnessing our collective strengths: to do well, do right, and do good — always doing things today with tomorrow in mind, so every generation prospers.
TEO CHEE HEAN
Chairman
July 2026