Image: Reuters Berita 24 English - After reporting a nearly 6% increase in its portfolio value to a record S$403 billion ($286.5 billion) in...
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| Image: Reuters |
Berita 24 English - After reporting a nearly 6% increase in its portfolio value to a record S$403 billion ($286.5 billion) in the year to March 2022, Singapore's Temasek Holdings anticipates slowing down its investments as a result of a weakening global economy.
The cautious approach comes as major central banks try to contain soaring inflation without impeding embryonic development, and as global stock markets have lost more than $20 trillion since reaching record highs in January.
According to Temasek executives speaking at a news conference on Tuesday, the anticipated slowdown in investment comes amid decreasing global economy, rising prices, and the economic disruption brought on by Russia's conflict in Ukraine.
Temasek, one of the top 10 investors in the world, has a 63 percent exposure to Asia based on the underlying assets of its portfolio firms, the majority of which are located in Singapore and China.
"The outlook for the economy is not promising. We anticipate further market declines "Rohit Sipahimalani, the chief investment officer of Temasek, stated.
According to him, the global economic downturn would probably last through this year and possibly into 2023. Compared to a year ago, "we are more cautious."
However, according to Sipahimalani, the majority of China's regulatory challenges have been resolved, and the nation continues to be a significant market for Temasek.
Beijing's attitude on a broad crackdown that began in late 2020 when the authorities abruptly cancelled fintech giant Ant Group's massive IPO has softened in recent months. The campaign later spread to several industries, including technology, private education, and real estate.
Temasek had made an investment in Ant alongside other international investors.
The DBS Group, Singtel, China Construction Bank, and Standard Chartered are among Temasek's major publicly traded interests.
As of March 31, its unlisted assets increased to a record 52 percent of its total holdings. Developer of real estate Mapletree Investments, port operator PSA International, and Singapore Power Group are examples of unlisted assets.
Temasek executives claimed that over the past ten years, the portfolio value of their unlisted holdings had climbed by nearly four times, to S$210 billion. $1 is equal to 1.4069 Singapore dollars.
