Temasek, Singapore's state investment company, has reaffirmed its stance of keeping cryptocurrency investments 'off the table,' four years after writing down $275 million from its exposure to the now-bankrupt FTX exchange [1]. Nagi Hamiyeh, president of Temasek Global Investments, cited ongoing regulatory uncertainty as the main reason for avoiding direct crypto investments, stating, 'I can't forecast what happens in the future, and the role that crypto is going to play in the main economy, depending on the different regulations that might happen' [1]. The FTX loss was previously described as 'disappointing' and damaging to Singapore's reputation by Lawrence Wong, then deputy prime minister and finance minister [1].
Instead, Temasek is focusing on blockchain infrastructure and the broader adoption of artificial intelligence (AI). Hamiyeh emphasized that Temasek prefers investing in AI applications and building commercial ecosystems, rather than frontier AI models, highlighting that 'not every situation needs frontier models' and that value lies in companies that 'embrace AI and build a moat' [1]. Temasek aims to increase its AI exposure from 6% of its portfolio in the fiscal year ended March to 15% by 2031, with a particular focus on automation, robotics, and industrial process optimization [1]. Hamiyeh noted that the AI investment cycle is still in its early stages and is expected to last for decades, even as some sector valuations have outpaced fundamentals [1].
Temasek has also allocated approximately 12 billion euros ($14 billion) to Europe over the past two years, making it the firm's second-largest regional investment after the U.S. [1]. The company is targeting European luxury, consumer brands, energy transition, and family-owned industrials, citing Europe's 'right to win' in these sectors and emphasizing a long-term, patient capital approach [1].
Regarding the Middle East, Hamiyeh maintained a positive long-term outlook on the region's transformation but acknowledged that the full ramifications of ongoing conflicts have yet to be seen [1]. On the topic of defense contractors and sustainability, he stated that Temasek takes a practical approach and does not categorically exclude such investments [1].
CONCLUSION
Temasek remains cautious on direct crypto investments due to regulatory uncertainty, redirecting its focus toward AI and European luxury sectors. The company is increasing its AI portfolio exposure and maintains a long-term investment horizon in key global markets. Market sentiment is moderately positive, reflecting confidence in Temasek's strategic pivot and disciplined approach.