Investment Update

Amidst the uncertainty in global markets, we slowed down our investment pace, and invested S$31 billion and divested S$27 billion in the financial year ended 31 March 2023, with a net investment of S$4 billion. This is compared to our net investment of S$24 billion in the last financial year.

We invested in opportunities aligned to four structural trends as we de-risked certain positions that faced headwinds. Consistent with the past, we realised liquidity from divestments based on our intrinsic value tests and our disciplined approach towards recycling capital to continuously reshape our portfolio.

As part of our T2030 strategy, three growth engines drive our portfolio construction — Investment, Partnership, and Development. With sustainability at the core of everything that we do, we invest to build a sustainable and inclusive future.

Investment Engine — Investing across Key Sectors and Geographies

Singapore Portfolio Companies

To prepare our local companies for the future, we engage them on their transformation journeys to deliver sustainable value over the long term.

The combination of Sembcorp Marine and Keppel Offshore & Marine was completed in February 2023, leading to the formation of Seatrium, a global player in offshore renewables, new energy, and cleaner offshore and marine solutions.

We also took part in SATS’ S$0.8 billion rights issue to partially fund the strategic acquisition of Worldwide Flight Services. This will transform SATS from a regional into a global air cargo handling platform.

Olam Group completed the US$1.24 billion sale of a substantial minority stake in Olam Agri to Saudi Agricultural and Livestock Investment Company (SALIC) and Olam Agri entered into a strategic supply and cooperation agreement with SALIC. The transaction unlocks significant value for shareholders and accelerates Olam Agri’s growth.

Global Direct Investments

In the financial services sector, we stepped up investments in capital market infrastructure and wealthtech companies that focus on the democratisation of access to alternative investment products and modernisation of wealth management. We invested in Blackstone and TPG which are global alternative asset managers. We also made a follow-on investment in iCapital, a financial technology company powering access to alternative investments.

In the technology and consumer sectors, we continued to invest in technology-enabled businesses underpinned by the structural trends of Digitisation and Future of Consumption. We invested in early stage companies such as Trigo, an Israel-based retail automation platform using computer vision and sensors to enable cashierless checkout in supermarkets and retail stores, and V7, a UK-based Artificial Intelligence data platform. We made follow-on investments in Internet Brands, a US-based fully integrated online media and software services company, and Zomato, an India-based online food delivery platform.

In China, we continued to invest and empower category leaders across new consumption patterns and innovation. We invested in Koutech, a microsurgery robotics company; Shanghai Friendess Electronic Technology, a laser cutting control system provider; and Yum China, a quick service restaurant operator.

In India, we strengthened our technology, consumer, and financial services portfolio by increasing our stakes in existing investments and investing in market leaders and early stage companies in emerging categories. New investments included Country Delight, a subscription-based food essentials platform; HealthKart, a nutrition and wellness supplements manufacturer and retailer; and OneCard, a mobile-first credit card issuance platform. We increased our stakes in Shiprocket, a customer experience platform for direct commerce; and HDFC Life and ICICI Prudential Life, which are life insurance providers. Post 31 March 2023, we entered into an agreement to acquire a 41% stake in Manipal Health Enterprises, a hospital chain in India. On completion, this would increase our shareholding to 59% when aggregated with the stake held by our wholly-owned subsidiary, Sheares Healthcare Group.

In North America, we invested in Stripe, a payments and software platform for online and omni-channel businesses, and Kaseya, a provider of unified IT management and security software, to fund its acquisition of Datto, a provider of security and cloud-based software solutions. We increased our stakes in Mastronardi, a company that cultivates and distributes fresh produce grown in greenhouses.

In Europe, we invested in EuroGroup Laminations, which makes components for electric motors. We also completed our acquisition of Element Materials Technology, a provider of testing, inspection, and certification services, increasing our shareholding to 88%.

Southeast Asia continues to offer attractive investment opportunities driven by strong economic fundamentals, favourable demographics, and secular tailwinds. We invested in Oatside, a Singapore-based start-up that manufactures and supplies oat milk products; Vietcombank, the largest commercial bank in Vietnam by market capitalisation; and Waresix, an Indonesia-based digitally-enabled truck brokerage platform.

Partnership Engine — Enabling Growth through Platforms

EvolutionX Debt Capital, a growth stage debt financing platform jointly established by Temasek and DBS, has continued to provide non-dilutive financing to growth stage technology-enabled companies across Asia, with a focus on China, India, and Southeast Asia.

Our existing platforms such as Azalea Investment Management, Fullerton Fund Management, InnoVen Capital, Pavilion Capital, and SeaTown Holdings International have continued to deliver returns while growing their businesses in an increasingly competitive environment.

Development Engine — Building Businesses of the Future

We continued to invest in deep tech and innovative technologies which could disrupt existing businesses or offer exponential growth potential in the future. For example, PASQAL, a France-based quantum computing hardware and associated software stack designer, and Ionblox, a US-based company developing next-generation lithium-ion batteries.

We have also set up ventures to enable innovation and growth across our ecosystem. We founded minden.ai, a technology venture that enables more personalised and rewarding interactions between brands and consumers through the use of machine learning and Artificial Intelligence. In 2022, minden.ai launched yuu Rewards Club, a digital consumer rewards programme in Singapore, in strategic partnership with DFI Retail Group and its coalition partners BreadTalk Group, DBS, PAssion Card, Mandai Wildlife Group, and Singtel. yuu saw a million consumers sign up within four months of its launch.

ClavystBio, a company that accelerates the commercialisation of life sciences research and innovation in Singapore, was launched by CLA Real Estate Holdings, a wholly-owned subsidiary of Temasek. It focuses on venture investing and partners private and public institutions to grow companies developing novel solutions to improve human health globally. ClavystBio aims to build and bridge life sciences communities and advance Singapore’s rise as a global life sciences hub.

Sustainability at the Core — Investing to Drive Sustainable and Inclusive Growth

Over the year, we continued investing in climate-aligned opportunities in focus areas such as food, water, waste, energy, materials, clean transportation, and built environment; enabling carbon negative solutions through nature and technology-based solutions; and encouraging decarbonisation efforts in businesses.

We deployed capital towards companies with pivotal technologies and clean energy solutions that enable the shift away from carbon heavy fossil fuels to support the acceleration towards net zero.

For example, we invested in BRUSA HyPower, a Switzerland-based designer and manufacturer of power electronics for medium to heavy-duty fuel cell electric vehicles; Neste, a Finnish renewable fuels and circular solutions provider; Ola Electric, India’s largest electric two-wheeler player; and Our Next Energy, a US-based energy storage company focused on battery technologies that will accelerate the adoption of electric vehicles and expand energy storage solutions. Post 31 March 2023, we committed to a financial investment in Westinghouse, a US-based provider of nuclear fuel and services and a nuclear reactor original equipment manufacturer.

We also made follow-on investments in Einride, a Sweden-based electric and autonomous freight mobility platform that enables sustainable and cost-efficient operations; Solugen, a US-based specialty chemical manufacturing platform that aims to decarbonise the chemicals industry; and Form Energy, a US-based energy storage company that is developing a low cost and multi-day duration battery for grid applications.

We invested in carbon removal solutions such as Living Carbon, a US-based biotechnology company that enhances CO₂ absorption and storage in trees through photosynthesis enhancement and shortening tree growing cycles, and made a follow-on investment in Svante, a Canada-based carbon capture and removal solutions provider.

We also invested in companies in the circular economy. These included investments in Circ, a US-based textile recycling company that chemically recycles polycotton textile waste into recycled polyester and lyocell, and Samsara Eco, an Australia-based company that is developing a novel low cost and low energy recycling technology that breaks down PET and other types of plastic.

In the agri-food sector, we invested in Agriconomie, a France-based agritech e-commerce platform, and Brightseed, a US-based biosciences company that uses Artificial Intelligence and machine learning to discover bioactive plant compounds and validate their benefits for human health. We also made a follow-on investment in Rivulis, a micro-irrigation company dual headquartered in Singapore and Israel that provides water-saving technology solutions to farmers worldwide. Rivulis recently completed its merger with Jain Irrigation’s International Irrigation Business to become the world’s second largest drip irrigation player. We also launched Rize, a venture that is jointly incubated with Breakthrough Energy Ventures, GenZero, and Wavemaker Impact. The company aims to reduce greenhouse gas emissions from rice production in South and Southeast Asia in a scalable and profitable way, while increasing productivity and farmer income to drive adoption of sustainable rice cultivation techniques.

We continued to forge partnerships with investors to further scale feasible and novel solutions to drive decarbonisation.

Together with HSBC, we established Pentagreen Capital, a debt financing platform dedicated to marginally bankable sustainable infrastructure projects, with an initial focus on Southeast Asia. The platform also has the support of the Asian Development Bank and Clifford Capital Holdings. We are also part of a consortium led by Brookfield Renewable Partners that has signed a binding agreement to acquire Origin Energy’s Energy Markets business, an Australian integrated power generator and energy retailer. The acquisition will accelerate decarbonisation of the energy grid, retire coal generation responsibly, and enable the energy transition in Australia.

We continued to step up our investments in funds and companies that aim to generate a positive impact for underserved communities while achieving sustainable returns over the long term. Over the year, we committed to a new fund managed by our strategic partner LeapFrog Investments. We also invested in two other impact funds and made a direct investment in SarvaGram, a company that provides financial and productivity enhancing solutions to rural households in India.