SINGAPORE: Asserting that Income Insurance should not be sold to a foreign company, veteran diplomat Tommy Koh has defended former NTUC Income CEO Tan Suee Chieh after Income and NTUC Enterprise accused Mr Tan of casting “unfair aspersions” relating to the proposed Allianz-Income deal.

German conglomerate Allianz is seeking to acquire a 51% stake in Income Insurance for approximately $1.6 billion. Pending regulatory approval, NTUC Enterprise Co-operative Ltd will retain between 21.8% and 49% of shares, contingent on other shareholders’ decisions.

While NTUC leaders have defended the deal, the acquisition has sparked concerns among Singaporeans about the impact of foreign ownership on Income’s foundational values, which have historically focused on serving the working population with affordable insurance solutions.

Prof Koh and Mr Tan are among those who have publicly criticised the deal. Prof Koh said last month, “I don’t think it’s a good idea to sell INCOME. It was founded to serve a social purpose and a social need. They remain valid today.

I wish to argue that INCOME and Fairprice should never be sold.”

Mr Tan, meanwhile, called the transaction a “breach of good faith” in an interview with CNA last month. He added, “This was what I had hoped would not happen. I did not expect the sale of majority shareholding to a very commercial European insurer to happen.

My concern about the fair treatment of minority shareholders when the corporatisation happened remains.”

On Friday (2 Aug), Mr Tan posted an open letter on Facebook addressed to the Monetary Authority of Singapore (MAS) chairman, Gan Kim Yong, urging regulatory intervention and criticizing various aspects of the deal.

That letter drew a sharp response from Income and NTUC Enterprise, who released a formal rebuttal. Mr Tan has refused to back down.

Perhaps referring to NTUC secretary-general and former ruling party minister Ng Chee Meng’s claim that additional resources are crucial for Income to continue its social mission, Mr Tan published on his Facebook page a list of insurance cooperatives or social enterprises around the world that are prospering while delivering significant social impact.

He pointed out that these groups “did not have to go regional or international to prosper, nor do they have to be acquired by a listed company.”

Mr Tan also sent a second open letter to Mr Gan Kim Yong, calling on the central bank once again to carefully scrutinise the proposed sale of NTUC Income to Allianz in the interest of Singaporeans.

Rebutting the points NTUC Enterprise and Income made in their joint statement, Mr Tan invited both organisations to “produce all the relevant board minutes and papers” covering certain discussions referenced in his first open letter to let MAS and the public “judge the matter for themselves.”

He stressed: “If this sale goes through, NE as minority shareholder will have no power to ensure that Allianz, a for-profit corporation, will subordinate its own profit-making objectives to further NTUC’s social mission.

The NTUC Joint Statement has not shown that Allianz has given a legally binding commitment to make NTUC’s social mission paramount over its own profits.”

Prof Koh has backed Mr Tan in a Facebook post published yesterday (6 Aug). Revealing that he has followed the exchange of views between both parties, Prof Koh said he supports the views of Mr Tan and called on the Singapore Parliament to “do the right thing.”

He added, “INCOME is the people’s insurance company. It should not be sold and certainly not to a foreign company. It is part of our social compact.” /TISG