Singapore's Temasek Announces Halt to Crypto Investment and Roadmap to Increase AI Allocation to 15% by 2031

On July 9, 2026, Singapore's sovereign wealth fund Temasek Holdings declared a complete break with the crypto market in its annual report. Leaving behind the massive losses and market uncertainty caused by the FTX collapse four years ago, Temasek is now majorly reshaping its S$518 billion portfolio, taking Artificial Intelligence (AI) as a core pillar of future growth.

Temasek took a significant hit during the 2022 FTX bankruptcy, writing off its entire investment of approximately $275 million. This announcement signifies more than just a halt in investment; it marks the beginning of a multi-year roadmap to finalize its 'distancing' from crypto and secure dominance across the AI value chain.

Temasek has confirmed its withdrawal from the digital asset sector by officially excluding crypto from its investment targets. Amid the market volatility and trust crisis that has continued since 2022, Temasek has taken a firm stance, defining its relationship with crypto as a 'permanent breakup,' and plans to concentrate all future capital injections into areas with proven value creation, such as AI and infrastructure.

Some breakups are permanent. Temasek is keeping crypto at arm's length and doubling down on AI and infrastructure.

As of the fiscal year ending March 31, 2026, Temasek's Net Portfolio Value (NPV) reached a record high of S$518 billion, an increase of $49 billion from the previous year. The one-year Total Shareholder Return (TSR) in Singapore dollar terms reached 10.5%, a figure evaluated as demonstrating the resilience of its 10-year and 20-year long-term returns.

AI Roadmap: Leap from 6% to 15%

Temasek plans to significantly expand the proportion of AI-related assets in its portfolio from the current 6% to 15% by 2031. Temasek views AI not merely as a technological trend but as a core driver of long-term value creation, and is deploying capital across a wide range of sectors, from semiconductors to cloud services.

• Expanding stakes in next-generation semiconductor design and manufacturing companies
• Investing in global cloud infrastructure and data center service providers
• Identifying generative AI and enterprise AI application developers

While stepping away from virtual assets, the firm appears to be strengthening its investments in the Chinese market. Temasek increased its exposure to China by $7.7 billion over the past year, maintaining portfolio dynamism by executing $51 billion in new investments and divesting $31 billion in assets.

To support these strategic shifts, Temasek has undergone an internal reorganization. The structure has been simplified into three divisions—Global Direct Investments (GDI), Temasek Portfolio Companies (TPC), and Partnerships & Asset Management (PFA)—with the aim of increasing focus on the core portfolio and accelerating growth.

Risk Management and Future Outlook

Through the reorganization, Temasek aims to strengthen the expertise of each division and respond agilely to the rapidly changing global economic environment. Specifically, the GDI division will target technology companies in developed markets such as North America and Europe, while the TPC division will focus on enhancing the value of core companies within Singapore.

External uncertainties persist, as seen in the approximately 2% decline in portfolio value during the final month of the fiscal year due to geopolitical risks in the Middle East. To counter such volatility, Temasek adheres to a diversified investment strategy across the globe, rather than being confined to specific regions or technologies.

In conclusion, Temasek's 2026 strategy can be summarized as shaking off the past uncertainty of virtual assets and betting on the future certainty of AI. The roadmap to increase the weight of AI through 2031 is a clear signal of how the Singaporean sovereign wealth fund will position itself in the era of competition for technological hegemony.