Temasek Holdings, Singapore’s sovereign wealth fund, announced that due to an investment loss of about $275 million caused by the FTX collapse and uncertainty in the crypto regulatory environment, it will not make any direct crypto investments in the short term. At the same time, the company plans to increase AI investments over the next 5 years, targeting an increase in the AI investment share from 6% in Q1 2026 to 15% by 2031.
$275 million FTX losses and the backdrop for the pause in crypto investments
According to reports, the main reasons Temasek has paused direct cryptocurrency investments are as follows:
FTX investment losses: After FTX went bankrupt in 2022, Temasek ultimately recognized an investment loss of about $275 million.
Regulatory uncertainty: The FTX incident exposed insufficient consumer protection in Singapore, prompting the Monetary Authority of Singapore (MAS) to tighten crypto regulation, leading to higher compliance costs and slower licensing issuance.
Unable to predict regulatory direction: In a statement, Nagi Hamiyeh said it is impossible to predict what role crypto assets will ultimately play in the global economy because this depends on how regulators in different countries evolve their policies in the future.
Temasek’s AI investment plan: from 6% to 15%
According to Temasek’s announcement, its AI investment strategy is as follows: over the next 5 years (2026 to 2031), it aims to raise the investment share in AI companies from 6% in Q1 2026 to 15%. The focus is on companies that can truly “deploy applications,” not on chasing the most cutting-edge AI models.
In a statement, Nagi Hamiyeh said that not all application scenarios require the most advanced AI models. “The decisive battleground in the future lies in deployed applications. Market capital will favor those companies that can embrace AI technology and use it to build competitive advantages for themselves.”
He also said that the AI investment cycle has only just entered the initial stage, and this wave will last for decades. However, some AI sector valuations have already exceeded fundamentals, so caution is needed; all of the above are Hamiyeh’s personal views.
Common Questions
Is Temasek permanently exiting crypto-currency investment?
Based on Nagi Hamiyeh’s explanation, Temasek currently has no direct crypto-currency investments, and it cannot predict the role crypto assets will ultimately play in the global economy because this will depend on how regulatory policies in different countries evolve. His wording was that in the “short term” it will no longer make direct investments, which does not clearly indicate a permanent exit. Specific investment decisions will follow Temasek’s official announcements.
What is Temasek’s AI investment target, and when will it be achieved?
According to Temasek’s announcement, the company aims to increase the AI investment share to 15% by 2031, up about 9 percentage points from 6% in Q1 2026; the overall timeline is 5 years. The company said the AI investment cycle has only just started, and this wave will last for decades. The specific target share will be based on Temasek’s periodic financial reports.
How much did Temasek lose in the FTX incident, and what impact did the incident have on Singapore?
According to reports, Temasek ultimately recognized an investment loss of about $275 million due to FTX’s bankruptcy (in 2022). The incident exposed gaps in consumer protection in Singapore, prompting the Monetary Authority of Singapore (MAS) to tighten crypto regulation, leading to follow-on challenges such as higher compliance costs and slower licensing issuance.
