Temasek Holdings, the Singapore state investment company, said on Tuesday that it had invested an additional $600m in Merrill Lynch in February, in spite of suffering a paper loss on its earlier $4.4bn investment in the US investment bank late last year.

The Government of Singapore Investment Corp, the city state’s biggest sovereign wealth fund, is considering entering a new capitalisation programme for UBS after investing almost $10bn in the Swiss bank in January. GIC also has posted paper losses on its investment.