5 Quick Things You Should Know from Temasek's Latest Report (2026)

Temasek is a global investment company owned by the Singapore government, but it operates on commercial principles rather than as a policy arm of the state. Since its incorporation in 1974, it has grown from a domestic holding company into a global investor with a portfolio spanning Singapore, China, the Americas, Europe, and India. It matters to Singaporeans not just because of its scale, but because many of the companies it holds — DBS, Singapore Airlines, Singtel, ST Engineering — are woven into everyday life, from banking to transport to technology. Temasek's annual review is one of the clearest windows into how the nation's reserves are being stewarded for future generations. Here are five takeaways from the 2026 report.

1. Portfolio value hit a record S$518 billion

Temasek's net portfolio value rose to S$518 billion as of 31 March 2026, up S$49 billion from the year before — a doubling over the past decade. One-year Total Shareholder Return came in at 10.5%, driven largely by strong performance from listed Singapore-based portfolio companies and gains from key divestments. Longer-term returns stayed healthy too, with 10-year returns at 7.1% and 20-year returns at 6.8%, though the report cautions that a 2% drawdown hit late in the year due to Middle East-related market volatility.

2. Big local names did the heavy lifting

A large chunk of this year's gains came from Temasek's own backyard. DBS Group shares rose 22.4% over the financial year, Singtel gained 19.2%, and ST Engineering climbed 39% — helped along by the Singapore Exchange's broader rally after the Monetary Authority of Singapore's Equity Market Development Programme, which pushed the Straits Times Index up more than 23% over the same period.

3. China exposure is smaller, but not being abandoned

Temasek has quietly trimmed its China exposure from 24% of the portfolio in 2016 to 17% today, partly a hangover from a rough patch in Chinese capital markets between 2021 and 2024 that dragged five-year returns down to 4.6%. But Temasek insists it isn't retreating — in absolute dollar terms, its China holdings actually grew by about S$10 billion over the past year.

Some of the key investments include Alibaba, Tencent, Ping An Insurance, Luckin Coffee and Insta360, a global leader in 360-degree cameras.

4. AI is now a core investment thread, not a side bet

AI-related exposure currently makes up 6% of the total portfolio, with Temasek aiming to grow that to as much as 15% by 2031. Investments already include Anthropic and OpenAI in the US, spanning the AI value chain from foundation models to infrastructure — part of what the firm describes as a deliberate, four-pillar strategy to weave AI through how it invests, operates, and supports its portfolio companies.

5. A quiet pivot toward public markets

Since 2023, Temasek has built out dedicated teams and strategies focused on public equities and stock selection, and today about two-thirds of its Global Direct Investments portfolio is listed versus one-third unlisted — a deliberate tilt toward liquid, publicly-traded holdings in a more uncertain world. It's also become more disciplined about "re-underwriting" its private investment theses once those companies eventually go public, rather than just holding on by default. The shift reflects a broader lesson Temasek seems to have drawn from recent years of volatility: liquidity and flexibility now matter as much as long-term conviction.

The bottom line

Taken together, this year's Temasek Review paints a picture of an investor navigating a genuinely turbulent world — from Middle East conflict to AI disruption. The foreword by Temasek Chairman Teo Chee Hean, also a former Deputy Prime Minister of Singapore, was particularly insightful.

He wrote: “2025 marked an important turning point for the global order. Long-standing rules and norms have been overturned, with wide-ranging consequences across the global economy.

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.”

I hope you enjoyed this quick summary of the latest Temasek report, and I wish everyone continued success in making sound investment decisions for the second half of 2026. As always, the FSM investment advisory team is here to support you if you need investment ideas or a portfolio review.

Feel free to reach out at advisory@fundsupermart.com.

*All images were taken from Temasek’s website.