Monday, 14 March 2005

Temasek expands overseas

It looks like Singapore's state-owned investment firm Temasek is well on its way towards diversifying its assets outside the country.

Singapore's Temasek emerges as an Asian powerhouse after regional expansion
Singapore's Temasek Holdings is stamping its mark as an Asian powerhouse investor after a trailblazing multi-billion dollar shopping spree in the region over the past two years, analysts say. Temasek, which has interests in everything from banks to telecoms, airlines to energy firms, is now a major presence in the region, stretching from closest neighbour Malaysia to China and India.

Almost half of Temasek's portfolio, worth 90 billion Singapore dollars (55 billion US), is invested overseas with many of its foreign interests acquired over the past two years, company spokeswoman Rachel Lin told AFP. Lin said Temasek had invested more than three billion dollars globally since 2003 and it planned to continue increasing its foreign assets, not only in Asia but throughout the 30 Organisation for Economic Cooperation and Development (OECD) nations.

"Previously our portfolio was predominantly Singapore based," Lin said. "Currently, our portfolio is about 52 percent based in Singapore. In the next 8-10 years, we expect to see our portfolio transform to approximately one-third Singapore, one-third Asia and one-third OECD economies."

I am not sure about the investments that Temasek is making overseas, but in my opinion, now may not be the best time to invest in Singapore stocks anyway. See my latest commentary, "Singapore stock market flashes warning".

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