During a recent visit to Singapore, Portugal’s Minister of Economy met with sovereign wealth funds to discuss expanding investments in key sectors, notably energy and semiconductor production. Singapore’s interest in Portugal represents a strategic opportunity, with both GIC and Temasek, two of Singapore’s largest sovereign funds, already holding stakes in Portuguese energy and infrastructure.

The meetings underscored Portugal’s potential as an investment destination, especially in semiconductor production. Singapore’s sovereign funds expressed interest in expanding production beyond their own island and Taiwan due to a concentrated supply chain that has global industries heavily reliant on these locations for chips and semiconductors. For Europe, diversifying semiconductor production is an urgent priority, and Portugal’s favorable business environment and EU funding support make it an ideal base for manufacturing. Historically, Portugal was home to semiconductor plants like Texas Instruments and Qimonda, which contributed to the sector’s growth before their eventual closures. Today, Amkor Technology operates in Vila do Conde, employing 800 people and generating $55 million annually, demonstrating that Portugal has both the infrastructure and talent for high-tech manufacturing.

In addition to semiconductors, energy also attracted interest, specifically offshore wind power. As Portugal continues to grow its renewable energy capacity, offshore wind offers significant potential. GIC, which already owns 4% of EDP Renováveis, is well-positioned to expand in this sector. Other discussions included boosting the capacity of the Sines Container Terminal, which is currently operated by PSA International, a subsidiary of Temasek. Sines is a critical asset for Portugal’s logistics network, serving as a major link between Europe, Africa, and the Americas. Enhanced container capacity would not only support regional trade but also elevate Portugal’s role in global supply chains.

The health and biotechnology sectors were also topics of interest, as Singapore’s investors explored Portugal’s growth in these areas. With a rising number of health-focused startups and biotech companies, Portugal offers promising investment opportunities. The space sector is another area gaining attention, particularly Portuguese startups involved in satellite development and geolocation systems. These emerging technologies align well with Singapore’s goals for diversified tech investments.

Such visits by Portuguese officials aim to reinforce international partnerships, showcase Portugal’s innovative sectors, and attract new funding to boost Portugal’s economic growth. Regular international outreach is crucial to securing the capital and expertise needed for these developments, especially in sectors poised to impact both the Portuguese and European economies.

Portugal’s expanding role in technology, energy, and biotech is evident, and as these collaborations grow, the country is increasingly recognized as a European hub for innovation. The interest from Singaporean sovereign wealth funds marks another step forward in Portugal’s journey to become a leading player in these critical global industries.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes