Singapore's sovereign wealth fund hit a record $324 billion portfolio while quietly tripling down on its artificial intelligence bet across China and beyond.
While most Western institutional investors have spent the last two years tiptoeing away from Chinese markets, Singapore’s Temasek has been walking in the opposite direction. With a checkbook. The state-owned investment giant added roughly $7.7 billion in direct China investments during the fiscal year ending March 31, 2025, marking the largest increase in its China exposure in five years. The move helped push Temasek’s total net portfolio value to a record S$434 billion, approximately $324 billion, an increase of S$45 billion year-over-year.
The AI thesis behind the China bet #
Direct holdings in China’s AI sector rose by roughly SGD 4 billion, about $3.1 billion, during the last fiscal year alone. That’s a significant chunk of the overall China increase, suggesting that when Temasek looks at the Middle Kingdom, it’s seeing server racks and large language models, not real estate or consumer spending.
The fund has set what can only be described as an ambitious target: tripling its total AI investments from approximately $25 billion to around $75 billion by 2030.
The portfolio math tells a nuanced story #
China’s share of Temasek’s total portfolio actually decreased slightly, from 19% in FY2024 to 18% in FY2025. In English: Temasek put more absolute dollars into China, but its investments elsewhere, particularly in Singapore, the Americas, and India, grew fast enough to dilute China’s percentage share.
China remains the third-largest market in Temasek’s portfolio, behind Singapore and the Americas. The fact that its percentage weight declined even as absolute holdings jumped by billions tells you just how aggressively Temasek is deploying capital across multiple geographies simultaneously.
Why this matters beyond Singapore #
The fund’s track record with crypto is, shall we say, complicated. Temasek wrote down its entire investment in FTX after the exchange collapsed in 2022, a loss the firm publicly acknowledged.
The plan to reach $75 billion in AI investments by 2030 means Temasek will need to deploy roughly $10 billion per year into the sector over the next five years.
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