On 6 Aug Parliamentary session, Leong Mun Wai, Non-constituency Member of Parliament from the Progress Singapore Party, expressed concern that focusing on the capital adequacy of NTUC Income in the proposed sale of a majority stake to the German insurer Allianz might overshadow the importance of Income’s social mission.
He argued that while the social mission of Income might currently seem less prominent due to market conditions, it still provides Singaporeans with a sense of security.
Leong Mun Wai compared this to how FairPrice offers reassurance during food crises, even if it is no longer the cheapest option.
"My question is, first of all, does the government admit that they are only going to concentrate on the capital adequacy of Income, disregard the social mission?"
In response, Alvin Tan, Minister of State for Culture, Community and Youth quoted Dr. Goh Keng Swee, highlighting that cooperatives must be competitive and financially sustainable without government privileges.
He noted that a cooperative that is bankrupt would not serve its purpose.
In a supplementary question, NCMP Leong inquired whether Allianz has provided a written commitment and whether the government should intervene in the transaction to ensure that Income remains majority-owned by Singaporeans and that its social mission is preserved.
Minister of State Tan did not confirm this, but reiterated NTUC's dedication to preserving Income’s social mission amidst market changes.
He assured that Allianz is committed to honoring NTUC Income’s existing policies, participating in national insurance programs, and continuing charity commitments, including a S$100 million pledge over ten years.
He elaborated on the reasons behind the sale, emphasizing that Income faced capital adequacy pressures and competition in both the private and public insurance markets.
Alvin Tan mentioned that NTUC Enterprise had explored various funding sources, including local and foreign financial and non-financial institutions.
Despite this, Allianz was found to be the best fit in terms of alignment with NTUC Income’s goals.
Read more: gutzy.asia/YDLL
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Негізгі бет NCMP Leong Mun Wai questions Government’s focus on Income’s capital adequacy over social mission
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