SINGAPORE — Temasek will undergo a restructuring process to establish three entities for managing distinct portfolio segments in response to increased global uncertainty and economic changes, the Singapore investment company revealed on Thursday (Aug 28).

The three portfolio segments will include: global direct investments; Singapore-based Temasek Portfolio Companies (TPCs); and Partnerships, Funds, and Asset Management Companies (PFAs).

To oversee these segments, Temasek will create three wholly owned entities named Temasek Global Investments, Temasek Singapore for TPCs, and Temasek Partnership Solutions for PFAs, effective from April 1, 2026.

These entities are intended to drive Temasek's growth as the firm aims to construct a resilient and forward-looking portfolio, according to the announcement.

Temasek's chief executive and executive director, Dilhan Pillay, stated during a media briefing: "The world undergoes changes periodically, but we have experienced a period of stability over the past 30 years, especially since the establishment of the World Trade Organisation... and hence our organizational structure has remained relatively stable over the last 20 years."

However, many entities, including governments, corporations, multinational companies, local businesses, and even individuals and societies, have experienced changes.

"Therefore, it is imperative for us to realign our organizational structure to adapt to the new environment we are in, specifically concerning the three portfolio entities we have," he remarked.

Pillay emphasized the importance of adapting the organization to anticipate future changes, becoming more agile and flexible.

Over the past 50 years, Temasek has continually evolved, particularly during crises, Pillay added.

"As the saying goes, never waste a crisis. We are ensuring that we make the most of the current global situation," he explained.

In 2002, almost all of Temasek's portfolio - 94% - was in its Singapore-based TPCs, with only 4% in global direct investments and 2% in PFAs.

Over time, there was a shift in portfolio allocation towards global direct investments and PFAs. By March 2026, Singapore-based TPCs accounted for 41% of Temasek's portfolio, while global direct investments and PFAs made up 36% and 23%, respectively.

Pillay mentioned that Temasek's goal was to become a truly global investor, necessitating investments not only in Asia and emerging markets but also increasing investments in America and Europe.

Reflecting Temasek's expansion in global investments, the organization now operates in 13 offices globally and has 959 employees.

Pillay stated that the objective now is to maintain global direct investments and TPCs at around 40% each, with PFAs at 20%. Depending on market volatility, Temasek can readjust among these three engines based on perceived opportunities.

Regarding resilience and volatility, Pillay mentioned that around 60% of the portfolio should consist of resilient components, including portfolio companies, some global firms, and private credit. This segment should offer stable returns over time with a narrower range of outcomes.

The remaining 40% can be allocated to a dynamic component, encompassing innovation and emerging technologies with strong growth potential and long-term compounding prospects.

In response to media queries about the timing of Temasek's reorganization, Pillay highlighted that the current global landscape differs from when Temasek marked its 50th anniversary in September 2024.

"The rules-based order we have relied on as investors and for portfolio companies is changing. The United States has a clear 'America first' agenda, and other nations are now navigating within this framework," he explained.

"There is never a perfect time for anything. It's simply the right time. The world is evolving. If we remain static, it might not be the best approach."

Ultimately, the establishment of the three new segments will enable Temasek to solidify its strategy for 2030 and beyond, especially as each portfolio segment possesses unique characteristics, Pillay concluded.