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

Crypto still 'off the table' for Singapore's Temasek, four years after FTX flop

Europe has drawn about 12 billion euros ($14 billion) of Temasek capital over the past two years, behind only the U.S. Nagi Hamiyeh, president of Temasek Global Investments, said crypto investment is "still off the table" for the company as it strives to move past a substantial loss in crypto exchange FTX. "We don't have directly any, any investment in crypto," Hamiyeh told CNBC's Sri Jegarajah on Wednesday, citing regulatory uncertainty in the sector. "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." For now, the company focuses on blockchain and its infrastructure, based on what the technology can do for the real economy. Temasek's investment in the now-bankrupt FTX cryptocurrency exchange led to a writedown of $275 million in 2022, drawing much local criticism. Lawrence Wong, who was Singapore's deputy prime minister and finance minister then, called the loss "disappointing" and damaging for Singapore's reputation. Here are the other key takeaways from the interview: Hamiyeh said he would bet on adoption of artificial intelligence and building commercial ecosystem around it, over pushing for frontier models, when asked what matters more for a long-term investor. "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." His longest-term wager is on the physical implementation of AI: automation, robotics and industrial process optimization. Temasek aims to lift AI exposure from 6% of its portfolio in the latest fiscal year ended March to 15% by 2031. The AI investment cycle is still early and will run for decades, Hamiyeh added, even as valuations in parts of the sector have run ahead of fundamentals. Temasek invests across the full AI value chain, including energy infrastructure and data centers, where long-term contracts with highly rated counterparties keep risk "very, very minimal," he said. Hamiyeh disclosed that Europe has drawn about 12 billion euros ($14 billion) of Temasek capital over the past two years, behind only the U.S. Looking past the macro and political noise, he pointed to Europe's "right to win" in world-leading luxury, consumer brands, energy transition, and family-owned industrials in the continent, where Temasek comes in with long-term patient capital. On the Middle East, he said the region's long-term transformation story remains intact, but the ramifications of the conflict have yet to fully play out. "I still believe that the long-term view is there in terms of what the Middle East's role is going to be in the new bifurcated world ... however, we have to wait and see what are the ramifications of this conflict." Pressed on whether defense contractors belong in a portfolio that emphasizes sustainability and ethical investing, Hamiyeh said Temasek takes a practical approach and won't completely rule the sector in or out. The firm mainly looks at dual-use technologies that could be used in civilian settings, or in warfare. Biological and chemical weapons are categorically off-limits. Temasek's only exposure to the space is ST Engineering. "We look at every investment on a stand-alone basis," said Hamiyeh, including corporate governance and their contribution to any real-world conflict. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

A Bitcoin Reserve? No Thanks, We'll Pass After FTX, Says Singapore's Temasek

Singapore's Temasek Holdings on Wednesday announced that crypto remains off limits as the sovereign wealth fund targets lifts AI exposure from 6% to 15% of its portfolio by 2031. FTX's Shadow Still Hangs Over Temasek's Crypto Stance Temasek President of Global Investments Nagi Hamiyeh told CNBC the firm holds no direct crypto investments and cited regulatory uncertainty as the reason for staying out. "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," Hamiyeh said. The 2022 FTX writedown of $275 million drew sharp public criticism in Singapore, with then-Deputy Prime Minister Lawrence Wong calling the loss disappointing and damaging to the country's reputation. Temasek's current focus stays on blockchain infrastructure and what the technology can deliver for the real economy, stopping well short of direct token or exchange exposure. AI Is Where Temasek Is Putting Its Long-Term Conviction Hamiyeh said when choosing between frontier AI models and AI adoption, he bets on adoption every time. "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 said. His longest-term wager is on the physical side of AI, covering automation, robotics, and industrial process optimization. Temasek invests across the full AI value chain including energy infrastructure and data centers, where long-term contracts with highly rated counterparties keep risk low. The firm wants AI at 15% of its portfolio by 2031, up from 6% in the fiscal year ended March 2026. Europe Is Temasek's Second Largest Allocation After The US Temasek deployed roughly 12 billion euros, or about $14 billion, into Europe over the past two years, second only to the US. Hamiyeh pointed to European luxury brands, consumer names, energy transition plays, and family-owned industrials as areas where Temasek brings patient long-term capital. On the Middle East, Hamiyeh said the long-term transformation story remains intact but the full consequences of the current conflict haven't played out yet. On defense, Temasek takes a case-by-case approach, focusing on dual-use technologies with civilian applications while ruling out biological and chemical weapons entirely. Its only current defense exposure is ST Engineering. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.