Temasek sees investment opportunities in India, South-east Asia amid rising geopolitical shifts

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The investment company is stepping up focus in India and staying cautious but committed on China.

SINGAPORE - Temasek has been paying a lot more attention to the emerging investment opportunities and potential risks to its portfolio as a result of geopolitical shifts and tensions over the past five years.

Mr Alpin Mehta, head of real estate and deputy head of private equity fund investments at Temasek, said that with Prime Minister Narendra Modi back in power, “the focus will be on fiscal consolidation, to increase spending on infrastructure and the green transition in India and to continue the privatisation that has been happening”.

Mr Chia said Temasek remains committed to China and continues to look for investment opportunities there. He added that some sectors that Temasek will invest in include biotechnology, robotics and local Chinese companies that stand to benefit from the move to replace foreign imports with domestic production. Recently, the investment company has also devoted more attention to the electric vehicle value chain.

However, because the market has assigned a lower value to these earnings, that has impacted Temasek’s returns and portfolio performance over the last few years, Ms Png said.“When we first invested in China, it was really through the banks, because that was one of the only ways back then that you can actually invest in the market”.

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