Singapore’s Temasek to pour $30b into US over next 5yrs

Singapore state investor Temasek Holdings plans to inject up to $30 billion into the United States over the next five years, targeting sectors such as healthcare, financial services, and technology.

“It’s an incredibly deep and broad capital market in the US,” Jane Atherton, Temasek’s head of North America, told Reuters. “The US is really at the forefront of everything that’s happening from the AI perspective.”

The US economy outperformed expectations in the second quarter, contrasting with China’s weaker-than-expected growth. Beijing’s recent interest rate cuts underscore its economic challenges.

Currently, 22 per cent of Temasek’s investments, or $63 billion, are in the Americas, surpassing its China exposure for the first time in a decade.

The firm is particularly keen on AI-related areas, including data centres, semiconductors, and battery storage.

Temasek has previously highlighted the role of US and Indian investments in offsetting China’s underperformance. The firm maintains a cautious stance on China due to ongoing trade tensions.

With a $288 billion portfolio, Temasek prioritizes long-term investments in digitisation and sustainability.

Atherton emphasises the importance of earnings for future US stock performance, especially within the tech mega cap sector.

Temasek is exploring opportunities in both public and private markets, capitalising on private equity firms seeking to divest.

Attribution: Reuters