Temasek, the global investment company headquartered in Singapore, is planning to invest up to USD 30 billion in the “incredibly deep and broad capital market” of the United States of America. The sectors being considered for this 5-year investment plan include health care and fintech.
Not only is the US economy on a growth trajectory, but also cutting-edge work in Artificial Intelligence (AI) is being done in the country. Temasek is “particularly interested” in AI-driven fields, according to a report published yesterday by the news agency Reuters.
Moreover, Temasek has seen substantial returns on its investments in the US and in India, in contrast to the relatively weak RoI from China. A Temasek media release in early July 2024 said: “The increase [in net portfolio value] was mainly due to our investment returns from the US and India, offset by the underperformance of China’s capital markets.”
Speaking to Reuters, Jane Atherton, Head of North America at Temasek, said, “It’s an incredibly deep and broad capital market in the US. The US is really at the forefront of everything that’s happening from the AI perspective.”
Reuters reported: “The US economy grew faster than expected in the second quarter and continues to outperform its global peers. Despite recent turbulence, the S&P 500 (.SPX) is up 14.5% this year in a rally driven in part by excitement over Artificial Intelligence.”
In this context, China reported “weaker-than-expected growth” in July and cut interest rates to boost its economy, added Reuters.
The news agency said that in the last financial year — “for the first time in a decade” — the Singapore-based Temasek let its exposure to the Americas (22 per cent) surpass its exposure to China (19 per cent).
Areas related to AI that interest Temasek are data centres, semiconductors, and battery storage.
