Temasek opens Paris office, plans to invest S$20-25 billion in region over next five years

[PARIS] Singapore state investor Temasek Holdings officially opened its new office in Paris on Wednesday (Apr 10), with plans to invest S$20 billion to S$25 billion in the Europe, Middle East and Africa (EMEA) region over the next five years.

Temasek aims to deepen its presence in Europe and ride on trends such as the transition towards clean energy. The office in the French capital is its third in Europe, after London and Brussels, and its 13th office globally.

At the launch, Temasek chairman Lim Boon Heng described the Paris office as a “significant milestone” for Temasek, which celebrates its 50th anniversary this year.

Held at the Petit Palais museum, the event was attended by over 200 guests, including Deputy Prime Minister Lawrence Wong. He was in Paris as part of a six-day trip to Germany and France.

Foreign Affairs Minister Vivian Balakrishnan, French Interior Minister Gerald Darmanin and Bruno Le Maire, the French Minister for the Economy, Finance, Industrial and Digital Sovereignty, were also present.

Temasek’s Paris office will complement its London and Brussels offices to strengthen Temasek’s global network, said Lim. “It will enhance our access to deal flow and partnership opportunities, and grow our talent pool across EMEA.”

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Temasek recognises Europe’s leadership position in energy transition technologies, and “will also be focusing on investment opportunities aligned to this trend”, said Lim, adding that this is part of its commitment to accelerate the global move towards net-zero emissions.

Separately, Temasek’s new EMEA head Nagi Hamiyeh noted that Temasek has been focused on four structural trends: digitisation, sustainable living, the future of consumption and longer lifespans.

“We recognise the excellence in Europe’s leading companies in sectors which come within these trends,” said Hamiyeh, who was appointed to the role on Apr 1, in a press statement.

He cited sustainable solutions, pharma and biotech, consumer, financial services, and transportation and logistics as examples of such sectors.

“We expect to deploy significant capital into globally leading companies as well as promising emerging enterprises in these areas,” said Hamiyeh.

Growing exposure

Temasek’s exposure to the EMEA region has grown almost five times since 2011, to S$47 billion or 12 per cent of its portfolio as at end-March 2023. This growth reflects the “dynamic opportunities and innovation” Temasek sees in the region, said Lim.

The global investor opened its first Europe office in London in 2014, when Europe was still reeling from financial crises in Portugal, Ireland, Italy, Greece, and Spain, he noted.

“Even then, I said that Temasek saw a deeper purpose in providing a bridge between Europe and Asia, and partnering European companies,” Lim said.

Temasek’s notable investments in EMEA include Germany’s BioNTech, which played a key role in producing mRNA vaccines against Covid-19, and payments giant Adyen from the Netherlands.

Other portfolio companies include UK child care service Busy Bees, Danish engineering company Topsoe and Belgian malt producer Boortmalt. These companies have all become market leaders, Lim said.

In France itself, Temasek has invested in Alan, a digital health insurer; e-commerce platform ManoMano, asset manager Tikehau Capital; and quantum computing startup Pasqal. It also partnered Schneider Electric to expand the company’s India presence.

Singapore-France ties

Speaking at the launch, Wong noted that despite the challenges in the external environment, there remains opportunities to be seized globally, including in EMEA.

He also highlighted the close ties between France and Singapore, and how they are set to grow.

“(In) the coming years, Asia is bound to become more important to France, and Singapore can serve as a key node for France to connect to Asia. We look forward to our relationship growing across all dimensions,” said Wong.

He noted that China has economic weight and strength in engineering and manufacturing, while India is rapidly emerging and has “vast potential to be unlocked”.

“The economies of South-east Asia are also important in our own right. We have a combined population of more than 670 million, a dynamic, young and educated workforce, and a sizable and growing middle class,” he said.

Singapore is “at the heart of this dynamic Asian story” and its value proposition is to connect Asia to the world, and vice versa, said Wong.

“We believe this role becomes more important in an increasingly fragmented world. And that’s why we are redoubling our efforts to deepen cooperation with like-minded partners, like France,” he said.

France was the first European country to establish diplomatic relations with Singapore, back in 1965. It is currently the only European Union member state with which Singapore has a Strategic Partnership.

France is also Singapore’s second-largest trading partner in the EU, with bilateral trade of over S$30 billion in 2023. There are nearly 2,600 French companies in Singapore, including Airbus, L’Oreal and Schneider Electric.

Both countries have inked various partnerships over the years. For instance, in March 2022, Singapore and France signed a framework, called the Digital and Green Partnership, to undertake joint projects in areas such as artificial intelligence, cybersecurity and heritage conservation.

Next year, Singapore and France will commemorate the 60th anniversary of diplomatic ties, Wong noted. “We want to add more strength and substance to our happy relationship and work closely together.”

During his Paris visit, Wong will call on French President Emmanuel Macron and Minister Le Maire, while also meeting Singaporeans who live in France.