A Temasek logo is seen at the annual Temasek Review in Singapore July 7, 2016.
A Temasek logo is seen at the annual Temasek Review in Singapore July 7, 2016. Reuters / Edgar Su

Singapore's Temasek Holdings anticipates slowing down its investments due to a deteriorating global economy, after posting a nearly 6% rise in its portfolio value to a record S$403 billion ($286.5 billion) in the year to March 2022.

The cautious stance comes as world stock markets have shed more than $20 trillion since hitting record highs in January, as major central banks struggle to stem surging inflation without derailing fledgling growth.

The expected slowdown in investments comes amid weakening global growth, rising inflation and economic disruption caused by Russia's war in Ukraine, Temasek executives told a news conference on Tuesday.

Ranked among the top 10 investors in the world, Temasek is anchored in Asia, with a 63% exposure to the region as measured by underlying assets of its portfolio companies, most of which are in Singapore and China.

"The economic outlook is not looking very good. We see further downside in the markets," Temasek's Chief Investment Officer Rohit Sipahimalani said.

He said the global economic slowdown is likely to extend through this year and potentially into 2023. "We are more cautious than we would have been a year ago."

Sipahimalani, however, said most of the regulatory headwinds in China were mostly over and the country remained an important market for Temasek.

Beijing has in recent months softened its stance over a wide-ranging crackdown that started in late 2020 with the authorities abruptly pulling the plug on fintech giant Ant Group's mega IPO and later expanded to multiple industries, including technology, private education and property.

Along with other global investors, Temasek had invested in Ant.

Temasek's key public holdings include DBS Group, Singtel, China Construction Bank and Standard Chartered.

Its unlisted holdings rose to a record 52% of its portfolio as of March 31. Unlisted assets comprise real estate developer Mapletree Investments, port operator PSA International and Singapore Power Group.

Temasek executives said the portfolio value of its unlisted holdings had increased by about four times to S$210 billion over the past decade. ($1 = 1.4069 Singapore dollars)