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The Fascinating Business Empire behind Temasek Holdings – Part 1

As one of the world’s largest sovereign wealth funds, Temasek Holdings is an investment-giant in the global arena with more than S$200 billion in assets. Its investment holdings span over six continents and numerous industries.

In addition, the investment outfit also “contributes to the Singapore Government budget” using the dividends from its portfolio and the taxes it pays. With that much assets under its belt and in light of the aforementioned, it can be interesting to know for a Singaporean citizen what Temasek Holdings actually owns.

Temasek’s five main segments

Temasek’s investments are catagorized into five main segments: 1) Financial services; 2) Telecommunications, media and technology;  3) Transportation and industrials; 4) Life sciences, consumer, and real estate; and 5) Energy and resources. In this two-part series, I’ll be taking a closer look into Temasek’s investments in those five segments, starting with the first two.

Financial services

Temasek has huge investments in financial institutions that are centered mainly in China and Singapore. Most notably, Temasek is the largest shareholder of DBS Group Holdings (SGX: D05) and Standard Chartered PLC (LON: STAN). It also holds a 67% stake in PT Bank Danamon Indonesia, which is perhaps well known in Singapore for DBS’ failed bid to acquire it back in 2013.

Telecommunications, media and techonology

Within the telecommunications, media and technology space, the main bulk of Temasek’s investment resides in its majority-owned international telecommunications operator Singapore Telecommunications (SGX: Z74).

That’s not all, though. Back in 2006, Temasek had led a consortium of investors to buy out some 96% of Thailand-based telco operator, Shin Corporation. Temasek had bought the stake from former Thai Prime Minister Thaksin Shinawatra’s family. At that time, the deal had led to great controversy over Shinawatra among the Thai public and helped add fuel to fire during a period of political turmoil in the nation which ultimately resulted in Shinawatra being ousted in a coup. With ongoing political instability again happening in Thailand, Temasek has indicated its intention to sell its stake in Shin Corporation for S$3.1 billion.

Elsewhere, Temasek also has interests in Singapore-based telco Starhub (SGX: CC3) through its wholly owned subsidiary, ST Telemedia Pte Ltd. Temasek is also the major shareholder of STATS ChipPAC Ltd (SGX: S24), a semiconductor assembly and test services provider.

The best is yet to come

We are not even half way through the business empire of Temasek. But, at this juncture, it’s good to point out that the Singapore government had sought to deliver sustainable value over the long term through Temasek’s investments and ultimately help to benefit the Singaporean public down through the generations. As Singaporeans, it’s good to know that the billions being managed by Temasek are in good hands.

You can find out more about Temasek’s other investments here.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.