From conglomerate to global asset manager and operator

IN 1968, a small shipyard at Keppel Harbour began operations in tandem with a newly independent Singapore charting its own uncertain future. That shipyard would become Keppel Corporation and, then, Keppel Ltd. today.

In recent years, Keppel has transformed from a sprawling conglomerate into a streamlined, asset-light global asset manager and operator. With over S$88 billion in funds under management (FUM) as at end-2024 and a target of S$200 billion by 2030, the company is building capital, capacity and connectivity on a global scale.

“Being agile is one of Keppel’s core values,” says CEO Loh Chin Hua. “We are continually scanning the horizon, anticipating market trends and repositioning ourselves to be future ready and seize growth opportunities.”

It is a sentiment that captures both the company’s philosophy and its track record.

A heritage of transformation

Keppel’s history is one of constant reinvention. Its strong engineering and project management capabilities made it a longtime player in building infrastructure across Singapore and the region.

Keppel expanded into the offshore rig business in the 1970s, into real estate in the 1980s, and into infrastructure in the 1990s. Over the decade from 2000, it sold its banking and financial services business and formed Keppel Offshore & Marine. In the 2010s, the company privatised its real estate unit, its telecoms & transportation business, as well as telecom operator M1.

The next big transformation spanned 2022 and 2023 when the company undertook a strategic overhaul, which included the S$4.7 billion divestment of Keppel’s offshore & marine business, recasting the very foundations from which the company had grown. 2024 marked the first full year of Keppel’s operation as a global asset manager and operator. What was once a conglomerate of independent verticals has evolved to a horizontally integrated company, with platforms and divisions reinforcing one another.

“As part of Keppel’s multi-year transformation, we have broken down vertical silos and flattened our organisational structure, enabling our teams to move faster and collaborate more effectively,” says Loh.

Transformation has delivered results. In Financial Year (FY) 2024, Keppel recorded $1.06 billion in net profit from continuing operations, about 5 per cent higher than in FY2023. The company’s asset management fees jumped 54 per cent year-on-year to $436 million in FY2024, and its return on equity from continuing operations hit 10.1 per cent, up from 7.9 per cent just two years earlier.

Since embarking on its $17.5 billion asset monetisation programme in October 2020, Keppel has announced over $7 billion in assets monetised. In line with its asset-light strategy, the company aims to accelerate its monetisation of non-core assets to reach a cumulative target of $10-12 billion by the end of 2026.

Quality of earnings has also significantly improved. In 2024, with recurring income at $766 million, 72 per cent of its net profit came from recurring sources, a dramatic increasing trend from 21 per cent in 2021.

Channelling capital into megatrends

Today, Keppel is tapping into the growing demand for alternative real assets fuelled by climate change, the energy transition, digitalisation and the AI wave.

“These are significant megatrends that will be with us over the next decade or more,” Loh says. “With strong domain expertise across infrastructure, real estate and connectivity, we are well placed to provide essential services and critical solutions that the world needs whilst delivering strong returns to our investors.”

Keppel has pivoted from owning heavy assets to managing capital and ecosystems. The organisation no longer builds assets like infrastructure using just its balance sheet. It is co-investing with private funds and recycling capital efficiently by channelling it where impact and returns are greatest.

Through its private funds and listed real estate and infrastructure trusts, as well as Aermont Capital in Europe which was acquired in 2024, Keppel is deploying capital into renewables, clean energy, data centres and subsea cables – investments that are aligned with both global climate goals and digital demands.

Sustainability as a core strategy

“As a global asset manager, we channel private capital into real assets that support climate goals, both in Singapore and abroad,” says Loh.

“We are advancing in areas such as renewables, clean energy, green buildings, waste-to-energy plants and sustainable data centres, which are aligned with Singapore’s net zero ambition, as well as Singapore’s Green Plan 2030.”

One flagship project is the Keppel Sakra Cogen Plant, Singapore’s first hydrogen-compatible power plant, which is scheduled to commence operations in the first half of 2026. It is part of a broader shift by Keppel’s Infrastructure Division, now the Company’s largest earnings contributor, to support Singapore’s transition to cleaner energy sources and reduction of carbon emissions.

Keppel is also moving from volatile power trading to long-term contracted energy solutions. About 70 per cent of its power generation capacity is now locked in for three years or more, providing resilience in turbulent energy markets.

Keppel’s asset-light model in infrastructure also emphasises technology solutions, and operations and maintenance services. This includes Keppel’s Energy-as-a-Service business, which has grown beyond Singapore to China, India, Thailand and Vietnam, offering decarbonisation and energy efficiency solutions that are both scalable and profitable.

Scaling infrastructure for digital and connectivity

Keppel’s move into digital infrastructure is perhaps the most poignant example of its transformation. From a subscale logistics and data centre player just a few years ago, Keppel has become a major force in connectivity and digital infrastructure.

The total gross power capacity of its data centres has grown 2.7 times since 2018 to 650 megawatts (MW) in 2024. The company has also announced plans to double this to 1.2 gigawatts (GW), backed by $10 billion in fresh FUM and co-investments.

From a subscale logistics and data centre player just a few years ago, Keppel has become a major force in connectivity and digital infrastructure.

The focus is not just about scale but strategic positioning. Its Bifrost Cable System, the largest high-speed transmission cable that connects Singapore to the United States, recently secured a subsea landing licence from the US Federal Communications Commission. When operational this year, the system could bring an expected Internal Rate of Return of over 30 per cent to Keppel and its private fund co-investors on the company’s five fibre pairs. Keppel will also continue to earn long-term operating and maintenance fees of over $200 million per fibre pair over 25 years.

In parallel, Keppel’s telecom unit M1 has undergone its own digital transformation. Since going private in 2019, the telco has shifted to a cloud-native digital platform, delivering more than 10 per cent EBITDA growth over two years from FY2022 to FY2024 and unlocking $580 million from the monetisation of its network assets. With its enterprise revenue growing 82 per cent from 2021 to 2024, M1 is expanding its presence in Malaysia and Vietnam.

Technology drives performance

“Digital transformation is a force multiplier for Keppel,” says Loh. “We are embedding AI, data analytics, machine learning and cloud technologies across our operations to drive efficiency, generate actionable insights and unlock new profit pools.”

From predictive maintenance in data centres to remotely operated infrastructure assets such as district cooling systems, AI and cloud are enhancing Keppel’s ability to deliver high-performance assets and solutions.

“We are also scaling GenAI across our fund platforms and company operations through strategic tech partnerships with leaders like Amazon Web Services (AWS) and other ecosystem partners to reinforce our competitive advantage with future-ready capabilities,” says Loh.

People the engine of transformation

Keppel’s people, affectionately known as Keppelites, form the engine of the company’s transformation.

In 2024, Keppel invested heavily in upskilling its workforce. This averaged over 20 hours of training per employee, focused on leadership, fund management, digital skills and innovation. It also implemented structured talent development programmes and fostered a culture that encourages collaboration across functions and geographies.

“These efforts ensure our teams are prepared to adapt and excel in a fast-changing environment, while igniting innovation across our platforms and divisions,” says Loh.

Partner for the future economy

As Keppel eyes the future, it sees opportunity not just in its own growth but in helping economies and cities transition to sustainable and digital futures.

The company’s ambition is clear – to be the strategic ecosystem partner of choice for governments, investors, businesses and communities navigating this transformation.

“With our asset-light model, deep operating capabilities and access to diverse capital pools, Keppel is well-poised to seize new opportunities and deliver the solutions that investors and customers seek,” says Loh.

These include opportunities beyond Singapore, although Keppel’s roots remain anchored here and its contributions are deeply tied to the nation’s development.

“From Bifrost to being the pioneer importer of low-carbon electricity, Keppel is contributing to a more connected, resilient and sustainable future for Singapore and the region,” says Loh.

Still reinventing

As Keppel celebrates SG60 with Singapore, the company continues to propel forward.

With its established track record of consistent reinvention, a future-focused leadership, and alignment with global megatrends, Keppel is both adapting to the new economy and helping to shape it.

As Loh puts it: “I’m excited at the opportunity to scale Keppel as a strategic partner delivering future-ready solutions for green and digital economies, a space where Keppel is uniquely positioned to lead.”

Keppel’s transformation journey

1968: Established as Keppel Shipyard

1970s: Expanded into offshore rig business

1980s: Expanded into real estate business

1990s: Expanded into infrastructure business

2000s: Divested banking and financial services business
Established Keppel Offshore & Marine

2010s: Privatised Keppel Land
Restructured asset managers under Keppel Capital
Privatised M1 and Keppel T&T

2022-2023: Divested Keppel Logistics and Keppel Offshore & Marine
Underwent major reorganisation to become a global asset manager and operator

2024: Renamed as Keppel Ltd. Started operating as a global asset manager and operator
Acquired an initial 50% stake in Aermont Capital, a leading European asset manager, with full acquisition expected in 2028

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