Temasek Rules Out Crypto Four Years After $275M FTX Hit

Regulatory ambiguity remains the central obstacle preventing Temasek from reconsidering its stance. Analysts following sovereign wealth fund behavior see this caution as a deliberate long-term choice.

Temasek is prioritizing artificial intelligence adoption over building frontier models, according to Hamiyeh. "It's all about the applications" and companies that build a competitive moat, he said. The fund aims to raise AI exposure from six percent of its portfolio toward fifteen percent by 2031, betting heavily on physical AI applications including automation and industrial robotics.

Europe has attracted roughly 12 billion euros in Temasek capital across the past two years, placing the region second only to the United States among the fund's investment destinations. Hamiyeh cited European strengths in luxury goods, consumer brands, and family-owned industrial businesses.

On the Middle East, Hamiyeh said the region's transformation story is intact but conflict outcomes remain unclear. "We have to wait and see what are the ramifications of this conflict," he said.

Regarding defense, Temasek evaluates opportunities on a case-by-case basis rather than blanket exclusion. The fund focuses on dual-use technologies applicable to both civilian and military settings. Biological and chemical weapons remain categorically excluded. ST Engineering currently represents Temasek's only direct defense exposure.