Temasek rules out crypto, plans to triple AI investment to 15% of portfolio by 2031

Temasek Keeps Crypto Investments Off the Table After FTX Loss

Singapore's sovereign wealth fund Temasek maintains a firm stance against crypto investments four years after its costly encounter with FTX. Nagi Hamiyeh, president of Temasek Global Investments, told CNBC that crypto remains "still off the table" for the company, with regulatory uncertainty cited as the primary barrier 1

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. The firm holds no direct crypto investments and focuses instead on blockchain infrastructure based on what the technology can deliver for the real economy 2

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The FTX writedown of $275 million in 2022 drew sharp public criticism in Singapore, with then-Deputy Prime Minister Lawrence Wong calling the loss "disappointing" and damaging to the country's reputation 1

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. This experience continues to shape the Temasek investment strategy, keeping the fund firmly away from direct token or exchange exposure despite evolving market conditions 2

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AI Investment Takes Center Stage in Portfolio Allocation

Temasek plans to increase AI exposure from 6% of its portfolio in the fiscal year ended March 2026 to 15% by 2031, signaling a major strategic shift 1

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. When asked about priorities for long-term bets on AI, Hamiyeh emphasized adoption over frontier models. "Not every situation needs frontier models. It's all about the applications, and it's all about the companies that embrace AI and build a moat," he explained 1

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The firm's longest-term wager centers on the physical implementation of AI, including automation and robotics, along with industrial process optimization 2

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. Temasek invests across the full AI value chain, spanning energy infrastructure and data centers, where long-term contracts with highly rated counterparties keep risk "very, very minimal" according to Hamiyeh 1

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Europe Emerges as Second Largest Allocation Target

Temasek deployed approximately 12 billion euros, or about $14 billion, into Europe over the past two years, making it the second largest allocation after the United States 1

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. Hamiyeh pointed to Europe's "right to win" in world-leading luxury brands, consumer names, energy transition plays, and family-owned industrials where Temasek brings patient long-term capital 2

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Ethical Investing and Defense Technology Approach

Pressed on whether defense contractors fit within a portfolio emphasizing ethical investing, Hamiyeh said Temasek takes a practical, case-by-case approach without completely ruling the sector in or out 1

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. The firm primarily examines dual-use technologies with potential civilian applications, while categorically excluding biological and chemical weapons. Temasek's only current defense exposure is ST Engineering 1

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. The AI investment cycle remains early and will run for decades, Hamiyeh added, even as valuations in parts of the sector have outpaced fundamentals 1

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