SINGAPORE: In a latest argument against selling Singapore’s corporate NTUC Income to German insurer Allianz, Mr Tan Suee Chieh, former CEO of NTUC Income, has reiterated his objections to the justifications provided by NTUC Enterprise and Income. He argued that these justifications are unconvincing.

Mr Tan emphasised his support for seeking an institution that aligns with Singapore’s strategic interests to purchase the shares, rather than Allianz, which he believed prioritizes shareholder returns over the social mission of NTUC Income.

He highlighted that while innovation and adaptation are crucial, it is essential to do so in a manner that preserves the social mission and adheres to the cooperative principles that have guided Income since its inception.

“Sacrificing these values for short- term gains or aligning with entities that do not share our ethos would not only constrain our future but also undermine the very foundation upon which Income was built. ”

In a statement posted on his Facebook page on Wednesday (28 August), Mr Tan reiterated his criticism of NTUC Enterprise for failing to honour previous commitments made during capital injections. These commitments included maintaining the permanence of issued shares, safeguarding Income’s social mission, and ensuring that Income retained a majority shareholding.

One of Tan’s primary concerns is the potential extraction of surplus capital from Income post-sale.

He questioned whether Allianz, given its focus on return on investment (ROI), will extract surplus capital from Income, which could ironically contradict the sale’s justification centered on the need for more capital.

Tan noted that the participating life business segment, which is long tail and capital-intensive, might be phased out if it does not align with Allianz’s ROI objectives.

He argued that the participating life business, while requiring substantial capital, is less mission-critical compared to other segments where Income has a significant market share.

He suggested that Income should pivot towards these mission-critical areas and focus on delivering social impact.

Mr Tan: NTUC Income Should Reinvent Itself to Leverage Existing Strengths for Greater Social Impact

Besides market share in life insurance as 10%, Mr Tan further highlighted Income’s significant market shares in other important sectors, including:

27.5% in motor insurance
22% in health insurance (Income Shield)
21% in travel insurance
17% in personal accident insurance

Mr Tan argued that instead of selling to a foreign insurer, Income should “reinvent itself,” and use its enviable existing strengths to deliver social impact and outstanding value to Singaporeans.

Mr Tan further pointed out that the company’s track record in retail insurance in Asia is not exceptional.

He questioned whether Allianz’s expertise is truly indispensable in the regional context and highlights its profit-driven goals, which may not align with Income’s social mission.

While NTUC Enterprise Chairman Lim Boon Heng asserted that there is a shared purpose between Allianz and Income in serving people well, Mr Tan pointed to a seemingly contradictory statement from Allianz CEO Oliver Bate.

Bate, during the company’s second-quarter earnings briefing in Frankfurt on 8 August, affirmed that Allianz expects a “double-digit return on investment (ROI) over time” from its acquisition of Income Insurance.

Tan also draws attention to the success of other cooperatives and social enterprises globally, which have thrived without needing to expand regionally or be acquired by listed companies.

He also expressed support for finding an institution aligned with Singapore’s strategic interests to purchase the shares, rather than Allianz, which he sees as prioritizing shareholder returns over social mission.

Mr Tan Decries NTUC’s Shift Towards Shareholder Returns, Calls for Better Use of Income’s Strengths

Mr Tan found it deeply ironic and troubling that NTUC, an institution traditionally associated with cooperative principles and social missions, is now leading a shift towards aligning with a multinational company focused on maximizing shareholder returns.

“While it is true that the funds raised from this sale could potentially be redirected by NTUC Enterprise to support other social good initiatives, this is not the right way to leverage Income.”

“Sacrificing the cooperative’s core mission undermines the very essence of what Income stands for.”

Mr Tan also expressed his strong support for a diversity of business models and a pluralism of choices.

“Such diversity is not just a matter of principle; it is essential for building a more resilient and inclusive Singaporean society, where institutions like Income continue to play a pivotal role in serving all Singaporeans, especially the workers that NTUC represents.”

The post Tan Suee Chieh: Sacrificing NTUC Income’s values for short-term gains undermines its foundation appeared first on Gutzy Asia.

SINGAPORE: The Ministry of Communications and Information (MCI) has suspended the press accreditation of local media outlet Mothership for the second time in less than two years.

The move comes after Mothership broke an embargo earlier this week regarding the rise in water prices in Singapore.

The MCI has not specified the duration of the suspension.

On Tuesday, Mothership released an article on its website and posted on Facebook, disclosing details of the upcoming water price hikes, which were under embargo until the following day.

Subsequently, the MCI swiftly suspended Mothership’s press accreditation, rendering the outlet unable to attend government agency briefings and press conferences during the suspension period.

Mothership has been given until October 11 to present their case and respond to the suspension.

This isn’t the first time Mothership has faced such action.

In March of the previous year, their press accreditation was suspended for six months for breaking an embargo regarding Goods and Services Tax (GST) increases during Budget 2022.

The outlet had posted an infographic on Facebook outlining the GST increases before the government’s official announcement.

Managing Editor Martino Tan had previously stated that the suspension would be used to strengthen their internal processes and implement corrective measures.

In response to the recent suspension, Mothership issued an “unreserved” apology, extending their regrets to Singaporeans, stakeholders, particularly PUB and MCI, and industry colleagues.

Managing Editor Martino Tan accepted personal responsibility for the breach and expressed deep disappointment in their lapse.

Tan further vowed to investigate and resolve the issues leading to such incidents, emphasizing their commitment to maintaining higher standards in the future.