Singapore’s state-owned investment fund, **Temasek**, is still hesitant to dive into the world of cryptocurrency, four years after its $275 million write-down on the now-bankrupt FTX exchange.
The fund’s president, **Nagi Hamiyeh**, recently reiterated that crypto remains off-limits for Temasek, despite the sector’s recovery since the FTX collapse in 2022. This stance reflects the lingering concerns among investors and policymakers alike about the lack of regulation and safeguards in the crypto space.
The FTX debacle was a particularly embarrassing moment for Temasek, as the fund was widely seen as having failed to properly conduct due diligence on the exchange. The subsequent writedown led to a significant loss of face for the state-owned investor, which has been a major player in Singapore’s financial sector for decades.
Hamiyeh’s comments at the Singapore FinTech Festival in November underscored the extent to which the Fund is still wary of the crypto market. Despite the growing popularity of cryptocurrencies and the increasing number of institutional investors entering the space, Temasek appears to be sticking to its guns.
The fund’s caution is not just about protecting its reputation, however. It’s also about ensuring that Temasek’s investments deliver long-term returns and minimize risks. In an interview with Bloomberg, Hamiyeh noted that the Fund’s focus is on “patient capital” investments that prioritize stability and sustainability over short-term gains.
For Temasek, this means sticking to traditional asset classes like equity and fixed income, as well as emerging technologies like renewable energy and biotech. While the fund will continue to explore new investment areas, Hamiyeh made it clear that crypto will not be part of the mix anytime soon.
What this means for the future of cryptocurrency in Singapore is that the country’s largest state-owned investor remains committed to a more cautious approach. As the city-state continues to position itself as a hub for FinTech and innovation, Temasek’s decision to stick to traditional assets may set a precedent for other investors and policymakers.
