Singapore's state-owned investment firm Temasek Holdings reported a record fiscal year 2025 with its portfolio value increasing by up to $36 billion year-on-year, reaching an all-time high. Despite divestments totaling $33 billion, the highest in over two decades, Temasek maintained its investment strategy amid ongoing US tariff threats under the Trump administration. The sovereign fund is recalibrating its geographic exposure by reducing its stake in China for the third consecutive year while increasing its investment in India to 8%, positioning India as a key growth driver in its global portfolio. Temasek is also placing strategic emphasis on sectors such as market leaders, core infrastructure, alternative assets, and the artificial intelligence value chain. Additionally, the firm is reconsidering defense investments as part of its environmental, social, and governance (ESG) strategy. While Temasek has expressed some caution about European companies due to US tariffs, recent assessments suggest improving investment opportunities in Europe as valuations decline. The firm’s assets under management have reached a new peak despite these complex geopolitical and economic challenges.