PARIS — Temasek on April 10 opened an office in Paris, its third in Europe, expanding its global footprint to 13 offices across nine countries.
The Singapore-headquartered investment company said the Paris office — together with its existing offices in London and Brussels — will improve access to investment and partnership opportunities, as well as the talent pool across both the European Union (EU) and the broader Europe, Middle East and Africa (EMEA) region.
A Temasek spokesperson told The Straits Times it plans to invest S$20 billion to S$25 billion in the EMEA region over the next five years.
Temasek had a net portfolio value of $382 billion as at March 31, 2023. Since 2011, the company's exposure to the EMEA region has grown almost five times to $47 billion, or 12 per cent of its portfolio.
Speaking at a reception at art museum Le Petit Palais to mark the opening of the new office, Temasek chairman Lim Boon Heng recounted how Europe was still facing economic uncertainty coming out of the global financial crisis when Temasek opened its London office — its first in Europe — 10 years ago. There were financial crises affecting Portugal, Ireland, Italy, Greece and Spain.
"Even then, I said that Temasek saw a deeper purpose in providing a bridge between Europe and Asia, and partnering European companies, both inside and outside Europe," he said.
He added that Temasek's investment activities are aligned to four structural trends: digitisation, sustainable living, future of consumption and longer lifespans.
Guided by these trends, Temasek has invested in French companies such as digital health insurer Alan, e-commerce marketplace ManoMano and quantum computing firm Pasqal.
Temasek will also be focusing on investment opportunities aligned to energy transition technologies going forward, given Europe's leadership position in this area, Lim said.
"This is part of our commitment to contribute towards accelerating the world's net-zero journey," he added.
Nagi Hamiyeh, Temasek's new head of EMEA, said the company recognises the excellence in Europe's leading firms in sectors that fall within these four trends, such as sustainable solutions, pharma/biotech, consumer, financial services, technology, and transportation and logistics.
"We expect to deploy significant capital into globally leading companies as well as promising emerging enterprises in these areas," he said.
The Paris branch's opening comes as Temasek, which was incepted in 1974, celebrates its 50th anniversary in 2024.
Deputy Prime Minister and Finance Minister Lawrence Wong, who attended the event, stressed the need to strengthen connections between different countries and different regions of the world, in an era of competition and conflict where great power politics has returned.
Besides conflicts raging in Europe, the Middle East and Africa, there is more protectionism and economic fragmentation across the entire global economy as countries everywhere place more emphasis on national security and resilience, rather than economic efficiency and win-win co-operation, DPM Wong said.
"We wish all these were not happening and we must certainly work hard to shape better global outcomes," he added. "But we also have to be realistic because great catastrophes often seem unthinkable, until they actually happen. Things may well get worse before they get better."
Despite the challenges, there are still opportunities to be seized around the world, he said.
Europe, for instance, is a key part of the global economy and the world's largest trading bloc, with many French and European companies at the forefront of innovation.
In the Middle East and Africa, there are countries growing steadily and making good progress in closing development gaps, DPM Wong said.
He also pointed to China and India, as well as the Asean region, which has a combined population of more than 670 million, a dynamic, young and educated workforce, and a sizeable and growing middle class.
There is a diverse range of Asean economies at different stages of development, he said.
They operate in a looser configuration compared with the EU, but the members are taking steps to enhance their integration, so that Asean as a whole can offer more opportunities for businesses and investors, he added.
Singapore is at the heart of this dynamic Asian story, DPM Wong said.
"Our value proposition is to be a connector and a hub for Asia to the world, and for the world to Asia," he said. "We believe this role becomes more important in an increasingly fragmented world."
This is why Singapore is redoubling its efforts to deepen co-operation with like-minded partners such as France, he said.
The two countries have a comprehensive and multifaceted relationship that is deepening with each passing year, he added. Both countries will mark the 60th anniversary of their diplomatic ties in 2025.
"We want to add more strength and substance to our happy relationship, and work closely together as reliable and trusted partners," he said.
DPM Wong is on his first visit to Europe in his current capacity as Deputy Prime Minister, and is in Paris from April 10 to 13, after visiting Berlin. Over the next few days, he will be meeting various French leaders, including President Emmanuel Macron on April 11.
The Temasek event was also attended by Foreign Minister Vivian Balakrishnan, France's Minister of the Economy, Finance, Industrial and Digital Sovereignty Bruno Le Maire, and French Interior Minister Gerald Darmanin. There were more than 200 guests and partners from Europe, Asia and the Americas.
In his speech, Le Maire said he is pleased to welcome the new Temasek office to France.
"Singapore may be a small country from a geographical point of view, but it is a big country and a huge success from an economic and financial point of view," he said.
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