Temasek Holdings Pte is considering one of its most significant restructurings in years, with a proposal to split its operations into three investment vehicles aimed at boosting efficiency and returns, according to a report from Bloomberg, which cited people familiar with the matter.
Under the plan, Singapore’s state-owned investment firm could reorganize its business into three distinct arms: one focusing on its largest domestic holdings, such as Singapore Airlines Ltd.; another managing its predominantly overseas investments; and a third dedicated to fund investments. The proposal is still under discussion at senior levels and remains subject to change, the people said.
The potential revamp comes as Temasek faces increasing pressure to deliver stronger long-term performance. While the firm’s net portfolio value climbed to a record S$434 billion ($338 billion) as of March 31, its 10-year total shareholder return was 5%, in line with Singaporean peer GIC Pte but well below the MSCI World Index’s 10% annualized return over the same period.
Temasek, founded in 1974, currently manages investments by asset class and geography, including real estate and China. A reorganization into three specialized arms would allow senior executives to focus more sharply on driving growth and improving efficiency, Bloomberg reported.
A final decision has yet to be made, but an announcement could come within months. The plan may also coincide with the arrival of Temasek’s new chairman, Teo Chee Hean, who will assume the role on October 9 after serving as deputy chairman since July. Singapore’s Formula One Grand Prix in early October—an event where Temasek traditionally hosts partners and stakeholders—has been floated as a possible platform for outlining the changes.
The restructuring would also involve Temasek’s asset management operations. Investments with external managers, including Avanda Investment Management, could be consolidated under Seviora Group, Temasek’s wholly-owned asset management company established in 2020. Seviora oversees units such as Fullerton Fund Management, Azalea Investment Management, and SeaTown Holdings International. Starting in September, Seviora will be led by Gabriel Lim, a former senior civil servant and Temasek’s joint head of corporate strategy.
Other executives being considered to take charge of the new divisions include Temasek Chief Financial Officer Png Chin Yee and Nagi Hamiyeh, head of Europe, Middle East and Africa.
Temasek did not immediately respond to requests for comment, Bloomberg said.
