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Impact of Middle East Conflict on Temasek's Portfolio Performance

Published July 8, 2026 at 6:51 PM UTC

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The Middle East conflict has had a notable impact on global markets, including Singapore's state investment firm, Temasek Holdings. In the final month of the financial year ending March 31, 2026, Temasek experienced a 2% drawdown in its net portfolio value (NPV) due to events in the Middle East. This decline reversed a significant portion of earlier gains in the Global Direct Investments (GDIs) portfolio. However, the portfolio remains strong, with a 20-year Total Shareholder Return (TSR) of 6.8% and a 10-year TSR of 7.1%. In response to the Middle East conflict, Temasek has emphasized the importance of a disciplined investment approach, focusing on sustained risk-adjusted returns that are resilient through short-term cycles. The company continues to actively steward its portfolio companies, strengthening their competitiveness and resilience for long-term value creation. While the Middle East conflict has posed challenges, Temasek's strategic initiatives and diversified investment approach have positioned it to navigate these complexities effectively, ensuring continued growth and stability in its portfolio.