Singapore’s state investment company Temasek announced on Thursday a major reorganisation of its operations, marking one of the most significant structural shifts in its 51-year history.
The following are some of the key changes at Temasek before Thursday’s announcement:
Structural shifts
In 2011, Temasek Holdings established Temasek International as its management arm to separate ownership and investment functions, thereby enhancing governance and operational agility as it evolved into an active investor with a growing and increasingly global portfolio.
In 2016, Temasek announced an organisational structure change, saying the aim was to align the firm with its core priorities in challenging global times.
It formed a sustainability and stewardship group to lead ESG initiatives and consolidated sector and market investment teams under a unified investment group, among others.
In 2020, Temasek established a new asset management group, Seviora Holdings, as the operational holding company for its wholly owned asset managers.
Seviora comprises Azalea Asset Management, Fullerton Fund Management, Innoven Capital, SeaTown Holdings and Seviora Capital.
Leadership transitions
Ho Ching was appointed CEO in 2004, driving Temasek’s globalisation and portfolio diversification. Portfolio had tripled to more than S$300 billion ($233.9 billion) when she retired in 2021 from S$90 billion, which was mostly invested in Singapore, when she first became CEO. Ho is the wife of former Prime Minister Lee Hsien Loong.
Dilhan Pillay succeeded Ho Ching as CEO on October 1, 2021. He joined Temasek in 2010 and has held various leadership roles, including Head of Investment, Portfolio Management, and Enterprise Development Groups.
He has also led various market teams, including Singapore, the U.S., and the Americas.
This year, Teo Chee Hean, former Deputy Prime Minister and navy chief, will become Temasek’s fifth chairman on October 9, succeeding Lim Boon Heng, who has served since 2013.
Global expansion
Under Lim, who was chairman for 12 years, Temasek’s net portfolio value grew to S$389 billion in March 2024 from S$223 billion in the corresponding month a decade earlier. Lim was a former cabinet minister and labour chief.
Temasek also expanded in Europe and the United States, which now host six of its 13 international offices.
Some of Temasek’s notable deals during this period include investments into Chinese e-commerce firm Alibaba and top asset manager BlackRock and divestment of older real estate assets to pivot toward the tech, healthcare and sustainability sectors.
Portfolio moves
Temasek oversaw some major restructurings in its portfolio companies to enhance their value.
This included CapitaLand’s acquisition of property group Ascendas-Singbridge in 2019 and eventual split into a listed real estate investment manager, CapitaLand Investment, and a privately held developer, CapitaLand Development, in 2021.
Others include energy and urban infrastructure company Sembcorp Industries’ demerger from Sembcorp Marine, now Seatrium, an offshore marine company, in 2020; and Keppel’s divestment of its offshore and marine operations in 2022.
Reuters
