Temasek is restructuring, setting up 3 bodies to manage portfolio segments

SINGAPORE — Temasek will be restructuring and setting up three entities to manage three distinct portfolio segments amid heightened global uncertainty and economic change in the macro landscape, the Singapore investment company announced on Thursday (Aug 28).

The three portfolio segments will be: global direct investments; Singapore-based Temasek Portfolio Companies (TPCs); and Partnerships, Funds, and Asset Management Companies (PFAs).

To manage these three segments, Temasek will set up three wholly owned entities called Temasek Global Investments, Temasek Singapore for TPCs and Temasek Partnership Solutions for PFAs, with effect from April 1, 2026.

These will drive Temasek's growth as the firm continues to build a resilient and forward-looking portfolio, it said.

Temasek chief executive and executive director Dilhan Pillay said at a media briefing: "The world does change from time to time, but we have had a relative time of stability over the last 30 years, especially since the World Trade Organisation came about... and so our organisation structure has been fairly stable over the last 20 years."

But things have changed for many, whether it's governments, companies, multinational corporations, domestic companies, and even individuals and societies.

"And so we definitely need to realign our organisational structure, for this new environment that we are in and around the three portfolio entities that we have," he said.

He added that the most important thing is to adapt the organisation to cater to changes that are likely to be ahead, and be more agile and nimble.

Temasek has also constantly evolved over the last 50 years, and typically when there are crises, Pillay added.

"As the old adage says, never waste a crisis. We are ensuring that we are not wasting what's happening today in the global environment," he said.

In 2002, nearly all of Temasek's portfolio - at 94 per cent - was in its Singapore-based TPCs, with only 4 per cent in global direct investments and 2 per cent in PFAs.

Over the decades, the portfolio allocation in global direct investments and PFAs grew. As of March 2025, Singapore-based TPCs make up 41 per cent of Temasek's portfolio, while global direct investments make up 36 per cent and PFAs 23 per cent.

This was because Temasek wanted to become a truly global investor, Pillay said, which meant investing not just in Asia and emerging markets, but also stepping up investments in America and Europe.

Mirroring Temasek's growth in its global investments, the group now has 13 offices worldwide and 959 employees.

Pillay said the target now is to keep the global direct investments and TPCs to around 40 per cent each, and 20 per cent to PFAs. But depending on the volatility of the market, Temasek can rebalance among these three engines according to the opportunities it sees.

He added that when it comes to resilience and volatility, the resilient component of the portfolio - which consists of portfolio companies, some companies globally and private credit - should be around 60 per cent. This component should deliver stable returns over time, with a narrower range of outcomes, he said.

The remaining 40 per cent can be in a dynamic component, which includes innovation and emerging technologies, with strong growth prospects and long-term compounding potential.

Pillay added in response to media questions on why Temasek decided to reorganise now, that the world today is different even from when Temasek celebrated its 50th anniversary in September 2024.

"The rules-based order that we've been used to, that we've been able to rely upon as an investor and also for portfolio companies, is changing. The United States has got a very clear objective of 'America first', and other countries are now trying to figure out how to operate within that framework that they have," he said.

"It's never a good time to do anything. It's just the right time. The world is changing. If we just sit back and be the way we are, it might not be the right thing."

Ultimately, the three new segments will allow Temasek to anchor its strategy for 2030 and beyond, especially since the portfolio segments have distinct attributes, he said.

This is because global direct investments, TPCs and PFAs require different strategies and capabilities, he added.

[[nid:720027]]

This article was first published in The Straits Times. Permission required for reproduction.