Temasek Holdings, Singapore’s state-owned investment firm, announced its decision to focus more on artificial intelligence (AI) investments rather than cryptocurrencies. This shift comes amid regulatory uncertainties and the lasting effects of a significant $275 million loss related to the 2022 downfall of the crypto exchange FTX.
With its investment portfolio valued at approximately 518 billion Singapore dollars (around $400 billion), Temasek aims to boost its AI allocations from 6% of its holdings in the first quarter of 2026 to 15% by 2031. Nagi Hamiyeh, the president of Temasek Global Investments, shared with CNBC on Wednesday that the AI investment trend is just beginning and is expected to expand for decades, although he noted that some sectors of the industry might be overvalued.
As the largest investment arm of the state after GIC Private Ltd., Temasek is still recovering from the repercussions of the FTX collapse. This incident, along with others, highlighted the deficiencies in consumer protection in Singapore, prompting the central bank, the Monetary Authority of Singapore (MAS), to adopt more stringent regulatory measures, leading to increased compliance expenditures and delays in licensing, among other hurdles.