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.
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