Temasek’s $377 Million Loss in FTX Deal Causes ‘Reputational Damage,’ Says Lawrence Wong

The $377 million write-off Temasek Holdings incurred from its investment in cryptocurrency exchange FTX is not just a financial setback but also a reputational one, Deputy Prime Minister Lawrence Wong stated in Parliament on Wednesday (Nov 30). This loss has prompted Temasek to initiate an internal review, conducted by an independent team, to examine and improve its investment processes.

Wong, who is also Finance Minister, was responding to Members of Parliament (MP) queries on the broader implications of FTX’s collapse, following the crypto company’s bankruptcy filing and CEO Sam Bankman-Fried’s legal troubles over alleged misuse of customer funds. Temasek announced earlier that it would write down its entire $377 million stake in FTX, a small portion of its $403 billion portfolio as of March 31.

Describing the loss as “disappointing,” Wong noted that it stemmed from poor management at FTX and potential misuse of funds. He added that while losses are a part of investment risk, the key is that Temasek draws lessons from both its successes and failures to achieve sustainable returns in the long term.

Workers’ Party leader Pritam Singh asked if a threshold exists for the Auditor-General’s Office to conduct an external audit of Temasek’s investments. Wong clarified that external audits are not ruled out but would require evidence of serious issues, such as negligence or misconduct, within the organization.

MP Tan Wu Meng (PAP-Jurong) raised concerns about whether this loss might deter Temasek from investing in new technology and early-stage ventures. Wong assured that, while some start-ups may not succeed, the investment entities recognize the potential of high returns and will continue to take calculated risks in line with long-term goals.