Temasek, which had S$129 billion (US$82.9 billion) of assets in the year to March 31, is interested in Indonesian infrastructure opportunities and is "cautiously optimistic" on Thailand, Ho said in her keynote luncheon speech at the Morgan Stanley Asia Pacific Summit 2006 in Singapore yesterday.

"Asia continues to grow, powered by market reforms and liberalization as well as a growing middle class," Ho said. "While there are risks, Asia remains a continent on the move."

Temasek spent S$21 billion buying assets ranging from Chinese lenders to Indian cinemas and hospitals in the year through March. It also doubled its assets in Asia outside Japan and Singapore to S$44 billion, buying shares in two of China's three biggest banks. The overseas strategy led to a 71 percent jump in full-year profit to a record S$12.8 billion.

Ho said that in most parts of Asia, excluding China, investment as a percentage of gross domestic product was still lower than before the 1997-1998 Asian financial crisis. About US$3 trillion of investment is needed in infrastructure in Asia over the next decade, she said, citing figures from the Asian Development Bank.

Infrastructure in Indonesia, where Temasek is "slightly overweight," presents "plenty of opportunities," she said.

Indonesia's investment in infrastructure has fallen to about three percent of GDP from about six percent to seven percent before the Asian financial crisis, she said.

Temasek is interested in investing in so-called brownfield projects, or project on a piece of industrial or commercial property that is underused or a potential site for redevelopment.

"We continue to be interested in Indonesia," Ho said. "But Indonesia has to compete against many other investment destinations including Vietnam, India and China."

On Thailand, where Temasek's investment in Shin Corp has triggered protests and consumer boycotts of Shin and its units in the country, Ho said she is "cautiously optimistic."

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