- Temasek to invest US$30 billion (S$40.5B) in US over next five years.
- Focus on healthcare, financial services, and technology sectors.
- US economy leads in AI advancements, a key interest for the firm.
Singapore’s state investment firm Temasek plans to pour billions into the US market, signalling a shift in focus.
Temasek’s Big US Investment Plan
According to Channel NewsAsia, Temasek, Singapore’s state investment firm, has big plans for the US market.
It will invest up to US$30 billion (S$40.5B) in the US over the next five years.
The investment will focus on sectors like healthcare, financial services, and technology.
This move shows it’s aim to tap into the US’s robust capital market.
Jane Atherton, Temasek’s head of North America, shared insights on this strategy.
Here are some key highlights to note:
- The firm’s current portfolio is valued at US$288 billion (S$388B).
- The firm is interested in long-term investments.
- Digitisation and sustainability are major themes in their investment approach.
US Market Appeal and AI Focus
Jane Atherton from Temasek told Channel NewsAsia, “The US is really at the forefront of everything that’s happening from the AI perspective.”
The US economy showed unexpected growth in the second quarter of 2024.
This growth outpaced other global economies, making the US market more attractive.
The SP 500 index has risen by 14.5 per cent this year.
This rise is partly due to excitement around AI developments.
Take a look at this quick table for a clear overview:
| Investment Focus | Market Trends |
|---|---|
| Healthcare | Growing sector in US |
| Financial Services | Strong US capital market |
| Technology | AI advancements leading globally |
| Data Centres | Increasing demand with tech growth |
Shift in Investment Strategy
Temasek’s investment in the Americas now stands at 22 per cent of its portfolio.
This amounts to about US$63 billion (S$85B) invested in the region.
In contrast, its investment in China is now 19 per cent of its portfolio.
This marks the first time in a decade that Temasek’s Americas exposure exceeds its China exposure.
Atherton noted, “Geopolitics always plays a role” in investment decisions.
Future Outlook and Implications
The firm is keen on AI-related fields such as data centres and semiconductors.
It is also interested in battery storage technologies.
These areas reflect the technological focus in Temasek’s investment portfolio.
Atherton expects future US stock performance to depend heavily on earnings.
This is especially true for the tech sector, which has seen recent growth.
Temasek’s massive investment plan signals Singapore’s growing interest in the US market, particularly in tech and AI sectors.
