SINGAPORE – Singapore’s National Trades Union Congress (NTUC) has reiterated its dedication to its social mission following the government’s decision to block the proposed acquisition of a majority stake in Income Insurance by German insurer Allianz. The deal, valued at S$2.2 billion, faced significant public scrutiny over concerns that it could compromise Income’s longstanding commitment to providing affordable insurance to lower-income Singaporeans.
NTUC Secretary-General Ng Chee Meng acknowledged the public’s apprehensions, stating, “We hear you. We understand your concerns. We will learn the right lessons and do better.” He emphasized that NTUC remains steadfast in its mission to serve workers’ interests and ensure that essential services like insurance remain accessible and affordable.
The proposed deal, announced in July 2024, aimed to bolster Income’s capital base amid a competitive insurance landscape. NTUC Enterprise, which holds a significant stake in Income, argued that the partnership with Allianz would provide the necessary resources for Income to scale and innovate. However, critics, including former NTUC Income CEO Tan Suee Chieh, voiced concerns that the acquisition could erode the insurer’s social purpose.
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In response to the backlash, NTUC assured that it would hold Income accountable for maintaining the affordability of its low-cost insurance schemes, namely NTUC GIFT and Income Insurance LUV. Ng Chee Meng highlighted that NTUC Enterprise would retain a substantial stake in Income, ensuring continued influence over its operations and adherence to its social commitments.
The government’s decision to block the deal was based on public interest considerations. Prime Minister Lawrence Wong noted that while there were no concerns about Allianz’s suitability, the structure and terms of the transaction raised issues. He added that the government remains open to a new proposal that addresses these concerns.
Looking ahead to the 2025 General Election, Ng Chee Meng affirmed NTUC’s commitment to learning from this episode and strengthening its role in advocating for workers’ welfare. He stated, “We will continue to work tirelessly, with compassion and dedication, so all our workers can have better lives and livelihoods.”
