Temasek names ex-deputy prime minister as new chairman

Former Singapore Deputy Prime Minister Teo Chee Hean will become chairman of Temasek Holdings on October 9, 2025, after joining as deputy chairman on July 1, 2025.

Teo brings decades of political experience, with key roles in geopolitics, cybersecurity, and climate action highlighted by Temasek.

Outgoing chairman Lim Boon Heng led Temasek for 12 years, growing its portfolio from SG$223 billion (US$173.4 billion) to SG$389 billion (US$302.5 billion).

Under Lim, Temasek made major investments in firms like Alibaba and BlackRock, while shifting focus toward tech, healthcare, and sustainability.

Temasek also expanded globally and announced board changes, with three directors set to retire by July 2025.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Sovereign wealth fund portfolio diversification reflects global economic shifts

Temasek’s evolution under Lim Boon Heng’s 12-year chairmanship mirrors the broader transformation happening across sovereign wealth funds globally.

While Temasek grew its portfolio from S$223 billion to S$389 billion, it strategically reallocated capital from traditional real estate assets toward technology, healthcare, and sustainability sectors.

This sectoral shift aligns with the global trend among sovereign wealth funds, which collectively manage approximately $11.36 trillion (up from just $1 trillion two decades ago) and are increasingly directing investments toward future-focused industries 1.

The strategic pivot away from traditional assets reflects how sovereign wealth funds are responding to technological disruption and sustainable development imperatives, with many funds embedding ESG considerations into their investment frameworks.

Temasek’s investments in companies like Alibaba and BlackRock demonstrate how these funds are balancing portfolio diversification with potential for long-term returns in emerging sectors.

2️⃣ Geographic expansion strategy enhances sovereign wealth funds’ global influence

Temasek’s establishment of 13 international offices, with nearly half located in Europe and North America, exemplifies the increasingly global footprint of major sovereign wealth funds.

This international expansion strategy is part of a deliberate effort by sovereign wealth funds to diversify geographically beyond their traditional investment regions, with Temasek specifically emphasizing investments in the US and India 1.