Temasek sees opportunities in India, remains committed to China

It is paying more attention to potential risks as a result of geopolitical shifts

- Chor Khieng Yuit Senior

Temasek has been paying a lot more attention to emerging investment opportunities and potential risks to its portfolio, as a result of geopolitical shifts and tensions over the past five years.

“For every new investment that we look at, we have to look at any geopolitical events that will affect that particular asset. Then we do our risk assessment. If there is something that we feel uncomfortable about, we will not do it,” the investment firm’s deputy chief executive Chia Song Hwee said.

There has been tighter scrutiny on foreign investments in sectors crucial to national security in many countries worldwide. Therefore, Temasek must be selective over where it invests, Mr Chia said.

India, where Prime Minister Narendra Modi recently won a third term in office by a narrow margin, is one country in which Temasek sees investment opportunities despite recent geopolitical shifts.

In the 2024 financial year (FY), Temasek’s portfolio exposure to India grew to 7 per cent, from 6 per cent in FY2023.

Mr Alpin Mehta, head of real estate and deputy head of private equity fund investments at Temasek, said that with Mr Modi back in power, “the focus will be on fiscal consolidation, to increase spending on infrastructure and the green transition in India and to continue the privatisation that has been happening”.

Opportunities are also emerging in sectors including financial services, life sciences, technology, consumer and healthcare in India, said Mr Mehta.