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”. In Singapore, despite not having any natural resources, we are fortunate to be able to sit in the “shade” today. This comes in the form of the Net Investment Returns Contribution (NIRC) framework, which supplements Singapore’s Government spending each year to benefit Singaporeans. Under the NIRC framework, the Government can spend up to 50% of the expected long-term real returns (including capital gains) from net assets invested by GIC, MAS and Temasek. For reference, the Singapore Government estimates that the . This is expected to be during the year. As a global investment company, Temasek is focused on delivering sustainable returns over the long term, to ultimately benefit both present and future generations. Temasek’s formation was borne out of utility. Post-independence in 1965, it became pivotal for the Singapore Government to stimulate economic growth to improve the lives and livelihoods of its people. They had to make up for the 20% cut in economic activity due to the withdrawal of British forces and related industries in the early 1970s. Having converted the military and naval bases left behind by the British military to commercial use, and then finding itself the owner of a variety of these new businesses, the Government felt that it was necessary to separate governance from business management. Based on this principle, the Government formed Temasek in 1974 as a holding company to take over and own 35 companies and miscellaneous investments, to the tune of $354 million in portfolio value. While its initial portfolio reflected Singapore’s early stages of industrialisation, some of these companies, and others added since, have grown into iconic Singapore brands, such as the Singapore Zoo. Others, like DBS, PSA, Keppel, Singapore Airlines and Singtel, have transformed into regional and global champions. This year, Temasek commemorates its Since inception, Temasek’s portfolio has grown from $354 million to $382 billion (as at 31 March 2023) – achieving a total shareholder return of 14% since inception. Today, Temasek has grown into a global investment house, with 13 offices across nine countries, including the US, Europe, China and India. It has also added to its portfolio, established businesses and disruptive ventures alike that shape the future, including AIA, BlackRock, Meituan, Visa, PayPal, Adyen, DoorDash, Zomato as well as Manipal Health Enterprises and more. As an institutional investor with a global footprint, Temasek charts its way forward by seeking to build a resilient and forward-looking portfolio. A patient approach enables Temasek to weather business cycles, including “storms” brought upon by global uncertainties including macroeconomic cycles, geopolitical tensions, and the ongoing climate crisis. Unlike individual investors, Temasek does not need to exit positions to take profit or cut losses due to stock price volatility in the short-term. Similarly, Temasek is not constrained by any “fund life” that fund managers may be restricted to. Instead, Temasek’s investment horizon is generational. Its investment process starts with studying structural trends that shape societies including Digitisation, Future of Consumption, Sustainable Living and Longer Lifespans. This then allows Temasek to identify businesses that will benefit from such trends. For example, to capitalise on the AI wave, it is investing in the enablers and adopters of AI that are best positioned to create outsized value. The key principle is to work out the intrinsic value of the company and invest only after considering the relevant risks and returns from the investment. With a mission that goes beyond seeking short term returns, Temasek is able to pursue diverse types of opportunities, including listed stocks, private equities or funds. To build a resilient and forward-looking portfolio, it is also focused on investing in growth sectors and business models, while empowering its portfolio companies to transform and adapt through efforts in innovation. Beyond just being an engaged shareholder, Temasek is focused on the long-term – seeking sustainable returns to benefit the present generation and generations to come.