Temasek Report 2010

While meltdown risks might have diminished, recovery remains fragile. Though the market is flushed with liquidity, medium-term inflation and cracks in the credit system pose potential downside risks. The sovereign debt crisis in Europe is a reminder of the underlying structural imbalances and the untidy readjustments ahead. We expect global growth in the medium term to be slower.

Notwithstanding global readjustments, the growing middle income populations in Asia and other growth markets continue to offer significant investment prospects in the longer term.

Asia’s underlying long-term opportunities will inform our balanced Asia-centric posture going forward.