Singapore's Temasek, the state-owned investment company in Singapore, announced a major restructuring of its operations on Thursday. This is one of the biggest structural changes it has seen in its 51 year history.

Here are some key changes that will be made at Temasek after the announcement on Thursday:

STRUCTURAL CHANGES In 2011, Temasek Holdings created Temasek International, its management arm, to separate ownership from investment functions. This separation enhanced governance and operational agility while it developed as an active investor.

Temasek announced a change in organisational structure in 2016, stating that the goal was to align Temasek with its core values and priorities during a challenging global time.

It created a sustainability group that would lead ESG initiatives, and it consolidated the sector and market teams into a single investment group. Temasek created a new asset-management group in 2020 called Seviora Holdings as the holding company of its wholly-owned asset managers.

Seviora Capital is comprised of Azalea Asset Management and Fullerton Fund Management.

Ho Ching became CEO of Temasek in 2004 and led the globalisation of Temasek as well as portfolio diversification. When she retired in 2021, the portfolio had tripled from S$90billion, which was mainly invested in Singapore when she became CEO. Ho is the former wife of Lee Hsien Loong.

Dilhan Pilay will succeed Ho Ching in the role of CEO on 1 October 2021. He joined Temasek as a leader in 2010.

He has led various teams in the market, including those from Singapore, America and the U.S.

Teo Chee Hean will be the fifth chairman of Temasek on October 9 this year. He succeeds Lim Boon Heng who has served as Chairman since 2013.

GLOBAL EXPANSION During Lim's 12 year tenure as chairman, Temasek’s net portfolio value grew from S$223billion in March 2000 to S$389billion in March 2024. Lim was an ex-cabinet minister and labor chief.

Temasek has also expanded its international presence in Europe and the United States. Six of Temasek's 13 offices are now located there.

Temasek has made some notable investments during this time, including in Chinese ecommerce giant Alibaba and asset manager BlackRock. It also divested older real estate assets and shifted its focus to the tech, sustainability and healthcare sectors.

PORTFOLIO MOVEMENTS Temasek has overseen some major restructurings of its portfolio companies in order to increase their value.

CapitaLand acquired the property group Ascendas-Singbridge, and in 2021 it will split into two separate companies: a publicly listed real estate investment manager CapitaLand Investment, and a privately owned developer CapitaLand Development.

Other examples include the 2020 separation of Sembcorp Marine from Sembcorp Industries, which is now Seatrium - an offshore marine company - and Keppel's divestment in 2022 of its marine and offshore operations.

(source: Reuters)