Singapore’s Temasek Plans Three-Way Operational Split to Boost Returns

Singapore's state-owned investment firm Temasek is considering a major restructuring to boost returns and operational efficiency by dividing its business into three distinct investment units. One unit would focus on its largest domestic holdings, including Singapore Airlines, another would manage primarily foreign investments, and a third would handle all fund investments. This reorganization aims to allow senior executives to concentrate on specific areas to drive growth and improve overall performance, addressing pressure to enhance long-term returns. Despite reaching a record portfolio value of S$434 billion, Temasek's 10-year total shareholder return of 5% lags behind the MSCI World Index's 10% annualized return over the same period. The potential changes could be announced within months and might coincide with the appointment of Temasek’s new chairman, Teo Chee Hean, in October, possibly during Singapore’s Formula One Grand Prix event, which Temasek traditionally uses to engage partners and stakeholders. The proposal remains fluid and subject to change, with no official comment yet from Temasek.