SINGAPORE: Temasek Holdings Pte is increasing investments in consumer, technology and healthcare companies as Singapore’s state-investment firm becomes less reliant on financial assets.
The value of its holdings increased 3.7 per cent to a record S$223 billion (RM567.88 billion) in the 12 months to March 31 from the previous year, while total shareholder return, including dividends, shrunk to 1.5 per cent from 8.9 per cent, it said in its annual review on Tuesday. The value of its holdings rose 8.6 per cent in the year to March last year.
Temasek put US$1 billion (RM3.17 billion) in US biopharmaceutical firm Gilead Sciences Inc last year and has made multiple investments in China’s Alibaba Group as chief executive Ho Ching steered Temasek’s focus to newer industries with the potential for higher returns. By contrast, the proportion of financial holdings stood at the lowest since 2008 as the value declined.
“This is a new trend in their investment style and we will see more of that in the future,” said Melvyn Teo, professor of finance at Singapore Management University. “They are focusing on highly specialised firms in areas like healthcare. At the same time, they continue to keep an eye on the growing middle classes, mainly in emerging economies.”
Temasek’s share of financial assets, which stood at 40 per cent in 2008, fell by one percentage point to 30 per cent in the year ending March 31. Its holdings in life sciences, consumer and real estate rose to 14 per cent from 12 per cent last year, according to the annual review. Bloomberg