According to an internal memo obtained by Bloomberg, Temasek Holdings Pte is creating new groups for the purposes of investigating the benefits of artificial intelligence (AI) and distributed ledger technology (DLT). Temasek Holdings Pte is the primary Singapore investment vehicle and is currently creating what is known as “experimental pods” to observe the disruption potential of both AI and DLT across multiple industries.
Singapore investment with Temasek Holdings Pte
The purpose of Temasek Holdings Pte is to find sustainable investment opportunities and invest for long-term value growth, according to a representative of the company. The company currently has a portfolio worth over USD 200 Billion. The investment potential of both AI and DLT is phenomenal, though it is difficult to determine how best to invest in the new industries. They are both high risk and high return, so research needs to be carefully undertaken. As per Temasek Holdings Pte –
“As the investment landscape becomes more competitive and complex, we are now seeing more situations where we would benefit from collaboration and specialized capabilities wider than our traditional sector and market team approach.”
The Singapore investment arm is also setting up a strategic opportunities unit for DLT in emerging markets. The purpose of this unit will be to capitalize on investment opportunities as they arise. In rising industries, the first to invest can attain exponentially more profits than those who are later to the market, and speed is of the essence in most cases. The company is also looking to build an institutional network and has identified the Americas, China, Europe, the Middle East, Africa, India, and Southeast Asia as the best investment markets, and is actively investing in these areas.
The rise of smaller nations?
While many are aware of the potential of DLT to empower individuals at the expense of elites and corporations, it seems that it also has the potential to empower smaller countries. Singapore, UAE, Malta, Japan, Switzerland, Estonia, and other smaller regions can use the power of technology to offset the geopolitical and industrial advantages of their larger counterparts, namely the US, China, Russia, Australia, and other large industrialized states.
This trend is reflected in the choice of Temasek Holdings Pte to invest largely in emerging markets and countries that invest in technology early will have leverage as the industry develops further. In the past, only the superpowers could really invest in and support revolutionary technology, but disruptive advances are changing this traditional paradigm. Additionally, the choice of larger nations to clamp down on ICOs and to refuse to adopt a regulatory process is assisting the advance of their smaller competitors. Singapore is now the third largest ICO market in the world, and the Monetary Authority of Singapore is actively supporting the development of DLT.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.