ASEAN KEY DESTINATIONS
Temasek reaches new high
The value of Temasek Holdings portfolio climbed 43 percent to a new record high of S$186 billion in the 12 months to March this year, beating the previous high of S$185 billion set in 2008. Temasek is the investment vehicle of the Singapore government.
According to its latest annual report released Thursday, Temasek closed the financial year with a comfortable net cash position, according to Channel New Asia.
The market value of Temasek’s portfolio rebounded to a new financial year-end high of S$186 billion, an increase of S$56 billion from a year earlier.
Total Shareholder Return by market value grew 42 percent on year during the same period.
This reverses a negative 30 percent one-year TSR in 2009.
Since its inception in 1974, Temasek says its Total Shareholder Return by market value has grown a compounded 17 percent annually.
But Temasek's net profit for the 12 months to March 2010 fell 26 percent on year to S$4.6 billion, as revenues slid 4 percent to S$76.7 billion.
Temasek says it made S$10 billion in investments over the year, and S$6 billion in divestments, with most of its recent investments in the past few months being in the resources and energy sectors.
Temasek's annual report also stated that its investment focus remains firmly in Asia, with some 46 percent of its allocation currently based in the region.
Singapore assets take up some 32 percent while OECD economies account for 20 percent, with other countries, mainly in Latin America, with 2 percent of the allocation.
Temasek says it plans to increase its exposure in Asia and remains overweight on the region in the near future.
Looking ahead, Temasek believes the worst of the economic downturn is over but says structural imbalances remain in the global economy with the European debt crisis having the potential to slow recovery.
It also identifies deleveraging by governments and consumers, tightening regulations, the threat of trade protectionism and credit availability as risks ahead.
But it also adds that China and India will be the anchors for future regional growth.
Temasek says it plans to stay liquid and continue to invest and divest at a steady pace.
The firm is also pushing ahead with plans to grow SeaTown Holdings, a wholly-owned subsidiary with over S$4 billion in capital commitment.
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