Due to adverse effects of the global economic slowdown and the financial crisis on the returns on investments for the Singapore state-owned investment company, Temasek Holdings Pte Ltd, its net profit plummeted 67% in the year ended March 31. 

The firm specified Thursday that though that economic "meltdown risks" have passed, the global growth in 2009 would remain weak and the recovery will be "sluggish" in 2010.

Temasek forwarded a fall of six billion Singapore dollars (US$4.25 billion) in the net profit in its annual profit, for the fiscal year ended March 31, down from S$18 billion a year earlier.

The end of March witnessed Temasek's net portfolio value falling 29.7% to S$130 billion, compared with S$185 billion a year earlier.

But it should be noted that since then, the company's portfolio has hiked by S$42 billion, and it stood at S$172 billion at the end of July, as equity markets began recovering and Temasek took part in a number of rights issues of mostly Singapore companies.

Sum of S$3 billion was invested by Tamasek in the rights issues of companies like Standard Chartered Bank PLC, DBS Group Holdings Ltd., CapitaLand Ltd. and Neptune Orient Lines Ltd.

A Temasek official said: "The value of the share issues has more than doubled." 

The mark-to-market losses led to a plunge of nearly 29.6% in total shareholder return by market value compared to an increase of 7% a year earlier. 

A total of S$9 billion was pumped by Temasek during the year, while divesting $16 billion. Temasek sold its entire stakes in Bank of America Corp., Barclays PLC, Bank Internasional Indonesia and China Minsheng Banking Corp.

Sources close to the company have confirmed a loss of nearly $5.5 billion for the company due to sale of its investments in Barclays and Bank of America.

Temasek specified that via selling three power generating companies in Singapore, it raised about S$11 billion. 

The company said: "We remain open to increase, reduce or maintain our holdings, based on our value test and market opportunities, regularly reviewing our portfolio to rebalance our risk return stance."