Singapore – Emerging sectors like Artificial Intelligence (AI) are catching the eye of Singaporean investment firm Temasek as they seek opportunities for companies along the AI value chain.
Among them
Temasek Review 2025
It was released on July 9th and said it is looking into new areas such as AI and Core-Plus Infrastructure. This refers to emerging asset classes that include digital infrastructure and energy transition assets.
These are part of our efforts to build a resilient, future-ready portfolio that can deliver sustainable benefits over the long term.
“There is a great need for capital and opportunities, particularly related to AI and energy, and in some areas, infrastructure needs to be upgraded,” said Rohit Sipahimalani, Chief Investment Officer at Temasek.
When it comes to AI, Temasek is investing in major companies that have reached the breakout scale. We are investigating businesses that enable a broader AI ecosystem, including data centers and innovative early stage companies.
Temasek's aide Chia Song Hwee said: “There are a lot of layers to this, we don't want to take undue risks. For some businesses, AI is talking a lot, but in reality it's very diverse.
He added that the high-risk aspect is investing in businesses doing business in applying AI, and there are many startups in that area.
“For small startups, apply (more) harsh ratings and be more careful,” he said. The opportunity is huge, and Temasek will become selective, work with venture capital funds and participate in later funding rounds when there is a breakout opportunity.
As for startups, Temasek has around 5% of its portfolio in early stage investments. As part of the risk management framework, this segment is exposed to 6% of the overall portfolio value.
Sipahimalani said Temasek will continue to invest in start-ups, but has a strategy to enter into the funding round that follows.
Temasek has enjoyed good benefits from investments in companies in the early stages of the past, including Alibaba.
“They became a huge winner for us.
For companies with very disruptive technologies like nuclear fusion, Temasek will track them down and double them if there is a breakout.
He said the current environment for early stage investments is challenging, with rising interest rates and high corporate mortality.
This is why a large portion of Temasek's early stage capital will be when the company's business model is proven and then it reaches its subsequent funding stage, he said.
Temasek invests in AI, including AI infrastructure partnerships, including AI infrastructure partnerships founded by BlackRock, Global Infrastructure Partners, Microsoft and MGX.
Regarding the Core Plus Infrastructure segment, Temasek is considering sector opportunities such as data centers and energy migration.
He said companies in these sectors can provide resilient revenues and stable cash yields.
Several portfolio companies such as SembCorp and PSA are already operating in this segment and have expertise in the deep infrastructure domain.
Temasek diversifies its portfolio with alternative assets beyond traditional stocks.
For example, we are looking at private credit and hybrid solutions. This helps borrowers who are not receiving services that are not covered by traditional credit providers such as banks.
Temasek has created Aranda's key strategies to tap opportunities in this area. In this sector, he manages a portfolio of $10 billion in direct investment and capital.
Temasek invests in top tier private equity funds such as EQT in other alternative strategies and hedge funds.
Temasek says it can face uncertainty and geopolitical volatility ahead of its perspective, and expects tariffs to have a “minimal impact” on portfolio companies.
Sipahimalani said he recognizes Temasek's global trends have been towards being nationalist and protectionist in recent years.
“In recent years, we have focused our portfolios towards companies with access to large domestic markets, within one geo-economic influence, and relatively self-sufficient in terms of technology supply chains,” he added.
For example, Temasek invests in Indian hospitals, banks and consumer businesses that are not directly affected by geopolitics. Invest in Chinese consumer brands and US software or fintech.
“That's why when we do our own stress assessments, the initial order of tariff impact is very minimal for portfolio companies,” he said, but added a warning that anything that affects global growth will affect all companies.
Chief Financial Officer Png Chin Yee said:
“So we know the attributes of companies that can stay here and be better positioned in this new world of investment.”
