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Tan Suee Chieh: Income’s mission is to serve Singaporeans, not Allianz shareholders

In his latest statement on the potential sale of Income Insurance to Allianz, former CEO Tan Suee Chieh stressed the importance of upholding the principle of “people before profits.” In a Facebook post, he questioned how Singaporeans can trust new commitments from NTUC Enterprise Co-operative if past promises made as a major shareholder remain unfulfilled.

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SINGAPORE: In his latest statement regarding the potential sale of Income Insurance (formerly NTUC Income) to German insurer Allianz, former NTUC Income CEO Tan Suee Chieh reiterated the importance of honouring the organization’s core principle of “people before profits.” He warned against compromising this principle through the sale.

Mr Tan emphasized the need to uphold past commitments, questioning how Singaporeans can trust new commitments made by NTUC Enterprise Co-operative if those made two years ago, when it held over 70% of the shares, are not fulfilled.

In a Facebook post on Wednesday (31 July), Tan outlined ten key points about the proposed sale, expressing concerns related to the cooperative’s core values, market challenges, and alternative solutions for ensuring the sustainability of Income’s business.

Mr Tan calls for more imagination and courage in exploring alternatives to selling NTUC Income

He suggested that Income Insurance can thrive as an independent, socially impactful enterprise in Singapore without needing to sell to Allianz, calling for more imagination and courage in exploring alternative possibilities.

Tan argued that Income’s life savings insurance business, which requires significant capital, is less aligned with its social mission. He proposed that this segment might be better suited to ETFs and mutual funds.

While NTUC Enterprise’s recent statement highlighted the growing competitiveness in Singapore’s insurance market, Mr Tan suggested avoiding bancassurance deals, which he viewed as high-cost distribution strategies that do not align with the social mission.

He believed that chasing market share for its own sake is inappropriate for a social enterprise.

Despite Income possibly not being the cheapest or offering the best deals in Dependents’ Protection Scheme (DPS) or group schemes, Tan welcomed this, stating, “Our role as a price moderator has been fulfilled, and our focus should now shift to other areas where we can make a significant impact.”

“Expertise can be accessed through other channels without selling Income”

NTUC Enterprise believes that partnering with Allianz will allow Income to leverage global expertise in asset management, technology, product development, and distribution, thus enhancing its competitive edge.

However, Tan disagreed, describing this notion as “overstated.”

He argued that access to expertise can be obtained through other means such as reinsurance, consulting firms, and mutuals in Europe, without the need to sell the organization.

“We do not need to sell our heritage to gain access to such expertise.”

Mr Tan further criticized the deal for failing to provide additional capital resources to Income and accused NTUC Enterprise of using the social mission argument insincerely.

He argued that the sale prioritizes capital extraction over Income’s social mission.

He also believed that Income has sufficient capital to excel in various insurance segments and should focus on reinventing itself to better serve Singaporeans.

Mr Tan reiterated that commitments made during NTUC Enterprise’s capital injections in 2015, 2017, 2020, and corporatization in 2022 must be honoured.

“It reflects the integrity of the organization and influences how seriously future commitments will be regarded. ”

“If commitments made two years ago as a 70% shareholder are not kept, how can we trust new commitments made as a minority shareholder?”

Tan stressed that Income’s primary role is to serve the people of Singapore, not the shareholders of Allianz Europe BV.

He reminded NTUC Enterprise’s top leaders that Income’s fundamental principle is “people before profits” and warned against compromising this principle by selling the organization.

Prof Tommy Koh challenges Lim Boon Heng’s justification for selling majority stake in Income

On Wednesday, in a Facebook post, Ambassador-At-Large Professor Tommy Koh publicly disagreed with and challenged the rationale provided by Mr Lim Boon Heng, chairman of NTUC Enterprise, for selling a majority stake in Income.

Resonating with Mr. Tan’s sentiments, Professor Koh emphasized Income’s founding mission, recalling that it was established as a cooperative by the legendary Dr Goh Keng Swee to make insurance accessible and affordable for ordinary Singaporeans.

“For the past 54 years, it has fulfilled its mission and looked after the insurance needs of 2 million customers.”

Prof Koh highlighted several key initiatives by Income, including the Family Micro-Insurance and Savings Scheme for low-income families and insurance coverage for children with autism.

He questioned whether a foreign company would have launched such socially responsible products, expressing concern that these initiatives might not continue under Allianz’s ownership.

Addressing the financial health of Income, Prof Koh pointed out that it has always been profitable, posing the question: “In view of this fact why does NTUC Enterprise wish to sell INCOME? Is it because it will make a profit of $1 billion?”

He concluded with a reflection on changing values in Singapore, citing the warning by Singapore’s first foreign minister, S Rajaratnam, against becoming “a nation of people who know the price of everything but the value of nothing.”

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Parliament

NParks investigates 1,200 animal cruelty and welfare cases annually, majority involving dogs and cats

From 2019 to 2023, NParks investigated an average of 1,200 animal cruelty and welfare cases annually, mostly involving dogs and cats. About 50 cases each year led to enforcement actions. Many cases, lacking evidence, were linked to disputes or unrelated incidents.

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Maid probed over alleged fatal abuse of employer’s dog earlier in Feb 2024

In a parliamentary question, Workers’ Party Member of Parliament for Sengkang GRC, Ms He Ting Ru, raised concerns about animal cruelty and welfare cases in Singapore, seeking detailed data from the Ministry for National Development.

She inquired about the number of cases investigated and enforcement actions taken over the last five years, along with a breakdown by types of offences and animals involved.

In a written reply, Minister for National Development, Mr Desmond Lee, provided the data, revealing that the National Parks Board (NParks) investigated an average of 1,200 animal cruelty and welfare cases each year between 2019 and 2023.

The majority of these cases involved dogs and cats. Mr Lee noted that of these investigations, an average of 50 cases annually resulted in enforcement actions, such as issuing warning letters, composition fines, or court prosecutions.

However, a significant number of cases did not lead to enforcement action. Mr Lee explained that this was often due to a lack of evidence or the cases being unrelated to cruelty and welfare.

Commonly, these involved disputes or nuisances caused by pets or community animals, or incidents like accidental falls from heights leading to the deaths of community animals.

*Enforcement action refers to the issuance of a warning letter, a composition fine, or to court prosecution. Investigations for some cases are ongoing and have not been included in the count.

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Parliament

PAP MPs attack WP Gerald Giam in Parliament over NTUC independence from ruling party

During the Platform Workers Bill debate on Monday (9 Sept), PAP MPs clashed with Gerald Giam, MP for Aljunied GRC, over his call for the NTUC to maintain independence from the PAP. Giam argued that the NTUC’s current symbiotic relationship with the ruling party undermines its effectiveness. PAP MP Christopher de Souza interrupted, accusing Giam of diverting focus from the Bill to attack the NTUC.

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SINGAPORE: Ministers and Members of Parliament (MPs) from the ruling People’s Action Party (PAP) clashed with Mr Gerald Giam, MP for Aljunied GRC from the Workers’ Party (WP), over his criticism of the National Trades Union Congress (NTUC) and its close relationship with the PAP.

During the debate on the Platform Workers Bill, Mr. Giam argued that NTUC should be independent rather than maintaining its current symbiotic relationship with the PAP.

Midway through Mr Giam’s speech, PAP MP Christopher de Souza from Holland–Bukit Timah GRC interrupted, accusing him of using the debate to attack NTUC rather than focusing on the Bill.

Leader of the House Indranee Rajah also contributed to the debate, noting that close ties between unions and political parties are common in democracies worldwide, such as in the UK, US, and Canada.

She pointed out that Mr Giam’s call for union independence from political parties is inconsistent with practices in other democracies.

In response, Mr Giam acknowledged the global context but argued that while UK unions may support the Labour Party, they do not have the same level of symbiotic relationship with their political parties as NTUC does with the PAP in Singapore.

He emphasised that the WP supports a tripartite dialogue among employers, unions, and the government but not with any specific political party.

Mr Giam highlighted the need for unions to be independent and nonpartisan to better represent workers’ interests.

Meanwhile, Speaker Seah Kian Peng emphasised the importance of sticking to the relevance of the topic being debated, as per Standing Order Section 50.

Pritam Singh, Leader of Opposition also weighed in, noting that political remarks should be consistently applied and citing a previous instance where Mr. de Souza spoke on leadership transitions during a budget debate. Singh argued that PAP members should reflect on their own practices.

“I think the salutary message you provided at the end is important because it cannot be just accusations made at the opposition, but I think some PAP members ought to reflect on themselves, ” said Mr Singh.

In response, Mr De Souza justifying his earlier speech on leadership transitions by arguing that strong leadership is crucial for effective governance, including budgetary matters.

He insisted that his speech was relevant to the budget debate, in contrast to what he perceived as Mr Giam’s irrelevant critique of NTUC.

Senior Minister of State for Defence Mr. Heng Chee How joined the debate, defending NTUC’s relationship with the PAP.

He argued that this alignment benefits workers by effectively communicating their needs and prioritizing their interests.

Heng highlighted the PAP’s track record in delivering results for Singapore and its workers. He asserted that the PAP’s long-standing governance has consistently prioritized workers’ needs and has not compromised their interests.

Heng criticised some recommendations made by Gerald Giam, suggesting that they could potentially undermine the effectiveness of tripartite partnerships.

He warned that such recommendations could lead to ineffective agreements and hinder progress for workers.

In response, Mr Giam acknowledged the hard work of unionists but critiqued systemic constraints on union independence.

He argued that his proposals for greater union independence aim to empower workers’ representatives to advocate more effectively for their interests.

Giam addressed criticisms that his initial remarks were irrelevant by explaining they set the stage for his main policy points.

“I believe that my proposals for union independence are meant to empower unionists and platform associations leaders to act freely in the best interests of their workers.”

Later, Giam posed a thought-provoking question: “Can I assume that … if the PAP were to ever lose power, the NTUC would therefore become an instrument of opposition against the new government?”

Indranee responded that she could not speak for NTUC but emphasized that it would be up to NTUC and its workers to decide which political party, if any, they support.

“What I can say is that the PAP would do its very utmost not to have to give them a reason to think that we would never support them, or that as a government, we would not do our very best for the workers and the trade union congress.”

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