NEW YORK, Friday, August 2, 2024 – Singapore State investor Temasek has announced plans to invest up to $30 billion in the United States over the next five years, targeting sectors such as healthcare, financial services, and technology.
“The Americas is going to be and continue to be the largest recipient of capital,” Temasek’s head of North America Jane Atherton, said in an interview to Reuters on Monday, July 29.1
The U.S. economy has shown resilience, growing faster than expected in the second quarter and outperforming global peers. Despite recent market volatility, the S&P 500 is up 14.5% this year, driven partly by enthusiasm for artificial intelligence advancements.
In contrast, China has reported weaker-than-expected growth and recently cut major interest rates to stimulate its economy. Temasek’s investments in the Americas now total approximately $63 billion, representing 22% of its portfolio, while its exposure to China is 19%.
This marks the first time in a decade that Temasek’s investments in the Americas have surpassed those in China.
Temasek highlighted Temasek’s focus on artificial intelligence-related areas in the U.S., including data centers, semiconductors, and battery storage.
The company noted earlier this month that profits from U.S. and Indian investments have helped offset underperformance in China, where Temasek is adopting a cautious investment approach amid ongoing trade tensions.
Temasek’s investments in North and South America have surpassed those in China for the first time in at least a decade. Currently, investments in the Americas make up 22% of its portfolio, or US$63 billion, while Chinese investments account for 19%, and Singaporean investments represent 27%.
As of March, the firm managed S$389 billion (US$289 billion) in assets, up from S$382 billion the previous year.
Temasek manages a $288 billion portfolio with long-term investment themes centered on digitization and sustainability.
- reuters: https://www.reuters.com/business/finance/singapores-temasek-plans-invest-up-30-bln-us-over-next-five-years-2024-07-29/[↩]
