Singapore’s state-owned investment firm, Temasek Holdings, is considering its most significant business overhaul in decades, reorganizing its vast portfolio into three independent units in an effort to improve investment returns and streamline operations.
According to media reports on the 20th, the proposal, still under discussion at senior management, would split Temasek’s operations into three main parts: one focused on its largest local holdings, such as Singapore Airlines; another responsible for overseas investments; and a third encompassing all fund investments.
Despite Temasek’s net asset portfolio reaching a record high of S$434 billion (US$338 billion) on March 31st of this year, its 10-year total shareholder return (TSR) was only 5%, on par with its larger but more conservative peer, GIC, and significantly lagging the MSCI World Index’s 10% annualized return over the same period.
The reform plan could be announced as early as the next few months. The new chairman, Teo Chee Hean, will officially take office on October 9th, and the Singapore Formula One Grand Prix in early October is seen as an opportunity to explain the changes to partners and stakeholders.
Performance Pressure Drives Structural Adjustment
Temasek currently employs a traditional management model, with different executives responsible for various asset classes and regional investments. People familiar with the matter said that if the restructuring plan is implemented, it will enable key executives to focus more on improving the company’s performance and operational efficiency.
According to Temasek’s 2025 Annual Review, as of March this year, Singapore-based portfolio companies accounted for 41% of its net asset portfolio value, global direct investments accounted for 36%, and “partnerships, funds, and asset management companies” accounted for 23%. The proposed restructuring largely adheres to this existing structure.
Under the leadership of CEO Dilhan Pillay, Temasek has faced pressure on investment returns in recent years. Its 10-year total shareholder return is not only on par with GIC but also significantly lags behind global equity benchmarks, highlighting the urgency of structural reform.
The integration of asset management businesses is accelerating.
Some options under discussion would see Temasek’s investments with external managers such as Avanda Investment Management reconsolidated and potentially placed under Seviora Group, Temasek’s wholly-owned asset management company established in 2020.
Seviora currently serves as a holding company for investment units including Fullerton Fund Management, Azalea Investment Management, and SeaTown Holdings International.
Starting next month, Seviora will be led by Gabriel Lim, a senior civil servant and former Permanent Secretary at Singapore’s Ministry of Trade and Industry. Lim joined Temasek as Joint Head of Corporate Strategy last October.
The restructuring plan will also promote several key executives to senior positions, overseeing the operations of each of the newly created units. In addition to Seviora’s Lim, other executives mentioned as leading the new units include Chief Financial Officer Png Chin Yee and Nagi Hamiyeh, Head of Europe, Middle East, and Africa, who has relocated to the Paris office.
People familiar with the matter emphasized that the plan is still fluid and subject to change. Temasek did not immediately respond to a request for comment. If approved, the restructuring would mark Temasek’s choice to reposition its investment strategy and operating model through structural reforms in response to a changing global investment environment and shareholder return expectations.