Singapore
Dr Tommy Koh: “INCOME and Fairprice should never be sold”
A wave of concern has emerged over the planned sale of NTUC Income to Allianz. Dr Tommy Koh, Tan Kin Lian, and Tan Suee Chieh have expressed their reservations about the deal, arguing that the core values of NTUC Income and Fairprice should remain intact.
![](https://gutzymedia.s3.ap-northeast-2.amazonaws.com/wp/2024/07/23172253/tommy-koh-NTUC.png)
A wave of concern has emerged over the planned sale of NTUC Income to German insurer Allianz, as notable Singaporean figures Dr Tommy Koh, Tan Kin Lian, and Tan Suee Chieh have expressed their reservations about the deal, arguing that the core values of NTUC Income and Fairprice should remain intact.
In a Facebook post on Tuesday, Dr Tommy Koh, Ambassador-At-Large at the Ministry of Foreign Affairs and Chairman of the Institute of Policy Studies, voiced his opposition to the proposed sale.
Dr Koh highlighted the origins of NTUC Income, stating, “INCOME started life as a cooperative of NTUC like Fairprice. The idea was to offer insurance to the people at affordable rates. A few years ago, it was made into a company and ceased to be a cooperative. Now we are told that it may be sold to a German insurance company.”
Dr Koh further emphasized the social mission of NTUC Income, saying, “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.”
NTUC Income, established in 1970, was created to provide insurance protection to the masses at a time when life insurance was primarily accessible only to the higher income group.
In January 2022, NTUC Income announced plans to convert its legal structure from a co-operative to a company governed by the Companies Act, aiming to strengthen its position amidst growing industry competition. The corporatisation was intended to provide NTUC Income with greater flexibility to raise funds for expansion and to offer more competitive products. The corporatisation was completed on 1 September 2022.
On 17 July 2024, Allianz proposed a S$2.2 billion cash deal to acquire a 51 per cent stake in NTUC Income. The offer, priced at S$40.58 per share, represents a 37.3 per cent premium over NTUC Income’s net asset value per share as of 31 December 2023. If successful, the acquisition would elevate Allianz from the ninth to the fourth-largest composite insurer in Asia.
“This proposed transaction brings two strong businesses together for the benefit of Singapore’s customers and solidifies Allianz’s leadership position in the region,” said Ms Renate Wagner, an Allianz board member responsible for the Asia-Pacific region.
The deal is contingent on Allianz securing at least a 51 per cent stake, translating to approximately 54.6 million shares of NTUC Income.
NTUC Enterprise Co-operative, holding a 72.8 per cent stake, has irrevocably committed to accepting the offer, ensuring NTUC Enterprise will maintain a substantial shareholding post-transaction, ranging from 21.8 per cent to 49 per cent.
The acquisition also offers nearly 16,000 minority shareholders, who hold 27.2 per cent of NTUC Income’s shares, an opportunity to cash out from the illiquid and unlisted insurer.
Allianz plans to conduct a strategic and operational review of NTUC Income’s businesses to enhance capital efficiency and explore potential business model transformations.
The transaction is anticipated to close in the fourth quarter of 2024 or the first quarter of 2025, aiming to consolidate Allianz’s market position in property-casualty, health, and life insurance in Singapore. Allianz emphasized its commitment to continuing NTUC Income’s participation in national insurance programs and social commitments.
NTUC Income has submitted Allianz’s offer to purchase 51% of its shares at S$40.58 per share to the Monetary Authority of Singapore (MAS) for regulatory approval. If approved by MAS, the offer will be presented to all NTUC Income shareholders, who will be notified accordingly.
Former NTUC Income CEO Tan Kin Lian had earlier expressed his disappointment over the planned sale in a Facebook post, stating, “This is sad. But it reflects what has been happening in Singapore for the past three decades. We are following the bad practices of America. America is now in decay. Singapore may follow.”
Mr Tan Kin Lian, who led NTUC Income from 1977 to 2007, claimed that the insurance firm’s assets increased by 600 times under his leadership, from S$28 million to S$17 billion.
Commenting on a response by a netizen that a local icon should not be sold to a foreign company, Mr Tan said, “Sadly, PAP leaders do not share the same value as ordinary people.”
Mr Tan Suee Chieh, the former CEO of NTUC Income from 2007 to 2013, also shared his concerns on Facebook.
He quoted Allianz Group CEO Oliver Bäte, who stated in a Business Times article, “We’re not in Asia to buy top line; we want to build a resoundingly profitable business.”
He contrasted this with the values of NTUC Income under his and Mr Tan Kin Lian’s leadership, stating, “We maximised value to policyholders, but they must be sustainable and make business sense. We wanted to have as much reach to Singaporeans, not to maximise profits but to maximise social impact.”
Mr Tan Suee Chieh urged Singaporeans to speak up, saying, “I hope our leaders are making sound decisions to benefit Singaporeans in the long term. I hope things may still change if there is a public outcry. So speak up now or forever hold your peace.”
![](https://gutzy.asia/wp-content/uploads/2023/10/Gutzy-Logo-whiteS.png)
-
Politics1 week ago
Jamus Lim on Minister Chee Hong Tat’s remarks on fiscal policy: Calls for genuine debate over rhetoric
-
Opinion2 weeks ago
Lawrence Wong must face MPs in Parliament, not hide behind compliant media
-
Politics2 weeks ago
SM Lee: Singaporeans must ‘change attitudes’ as Govt promises ‘bold and necessary changes’
-
Community1 week ago
Toast Box faces backlash and boycott calls amid price increases
-
Media6 days ago
Notice to Our Readers: Moving Back to The Online Citizen
-
Singapore1 week ago
Singapore introduces new scheme in April 2025 offering up to S$6,000 in financial support for retrenched workers
-
Politics1 week ago
Jamus Lim raises concerns over high cost of living and its impact on Singaporeans’ sense of belonging
-
Singapore1 week ago
Tan Suee Chieh: Sacrificing NTUC Income’s values for short-term gains undermines its foundation
After sales of national assets where did the money go? Shared with the peasants?
We want to know the OUTcome of INcome.
Come, come, let’s wait and see.
I think the reason for selling need to b informed
I believed at the next parliament meeting, there should b question being asked the reason for the Income to sold
This is not new. They have sold everything that can make money. Soon, MRT and SIA will be sold. They will sell us if they could. Voice your objections through the ballot box. Stop grumbling, no use.
The 4Gz should have step in to stop this deal, it is like selling a Singapore icon to foreigners. I suppose next time they will start selling the country to foreigners too.
Oh wait they are already doing it.
It appears the illiquid and unlisted Income has no choice but to raise funds to meet the stringent capital requirements set by the authorities inorder to continue operating in Singapore.Allianz is the white knight solicited to put up the needed money to sauvage Income conditional upon Allianz having a controlling interest Income.The question on everyones’lips is why the once profitable unlisted Income has now become illiquid ?.Can it be that Income might have sustained heavy losses in its investments in China and /India.Unlike GIC,TH and MAS Income does not have the everlasting financial backing of Sugar Daddies. Regardless of the… Read more »
Must be a good price to sell. Great Singapore Sale. tsk tsk tsk
Singpost shares used to perch at $1.60 p share, it’s management were in SO BLOODY AWEFUL ADMIRATION of Foreign Trashes, they HEARTILY admitted a PLATOON of ex McKinsey CONSULTANTS into it’s ranks. Was IT DUE DELIGENCE or PAP’s Half PAST 6 TRENDY HOBBY MESMERISED by All THINGS FOREIGN, DERIDING and DISTASTE of CITIZENS and it’s OWN Ministry of Education’s EDUCATED sons?
Singpost IS A PSEUDO MONOPOLY – buy this company BUY that Other company, INCREASE POSTAGE stamp PRICES, WTF kind management, MUCH SIMILARLY to the ENTIRE PAP style, esp TH’s THROWING, SPRAYING State money hoping to SHOOT one Target 🎯.
SingPost also sold…
They have no pride left in our country’s assets, built up thro hard work of our trublu SGs thro decades..
The problem isn’t just the NTUC Income insurance.
The problem is NTUC itself. It is supposed to be a trade union representing workers in Singapore in Tripartite negotiations and agreements.
It is more an employer organisation and a business concern these days. Has it fought for the minimum wage reform or raise concerns of foreign workers impact on local workers?
Prof Elliott and Devan Nair would stir in their graves, if they know what NTUC is today.
This regime sold us and country out long long ago to the highest bidders.
Perhaps they need the $$ to cover up big holes in the nat.reserves, money lost thro reckless “gambling”..
The reserves could be number$ on paper only…in reality, who knows?.. one of sg’s biggest secrets, like the Jinx’s salary🤣😂
Corrupted Leegime law makers DON’T FLINCH.
ONLY a very very POWEFUL DIVINE CATASTROPHE can wipe this ENTIRE PAP Mob of Gangsters, LIARS, Double Tongues,
M. A. S. G. A. – Make Singapore Great Again. F this PAP into Mandai Columbarium.
FYI: SG has sold all Power Stations already.
They sold the nation to foreigners already so what will they not sell?
No Money Must Sell What!!!
Can Sell Your Ass, But Nobody Will Buy!!!!
Hahaha.
Do Not Stir Shit To Look Good Now.
Pups everything also sell. Bankrupt already mah salary too high.
Now going to be like Philippines all their gahmen assets slowly sell. Then after act blur.
Was there any public funds in the form of grants or whatsoever, be it directly or indirectly, accorded to Income since its starting as a social enterprise?
When the news broke that Income is going to corporatize, my hunch told me that it is going to be sold.
Just wondering who are the 16,000 minority shareholders who also stand to benefit from the sale since Income is not public listed? Are they union leaders, Pappy politicians, Income top management?
VTO. VTO.
Obviously this sale to Allianz benefit HUGE pocket MONEY to lots of PAP relatives – this is ROBBERY right?
Sheepgapore has BEEN POKED PAINFULLY in their ass holes WHEN 2 Multi RICH Millionaire PAP BLOKES SCHEMED to Fxxk Loong at his backside to CLEAR LAND and TREES TO ENLARGE their Palatial HOMES at Ridout Road.
Now this ABROGATION of social mission of PAP Administration – Sheeps still VOTE PAP to SUCK their blood?
Go ON. One Fine Day our bosses ARE FOREIGN Trash too.
Good riddance full or partial NTUC go off for good. What FAKE union is this – union for PAP to bully workers.
Union is to stand for workers stand for their rights BECAUSE of the POWER of Capital. Yet this PAP stands BEHIND CAPITAL to RIP OFF workers.
Where in the World Politicians organise UNIONS to fight workers? And going on strike is illegal, REALLY, Uniquely SG?
2.7 million waiting to Die .
Still can made profit ?
It is good that there are well known personalities like Tan Kin Lian and Tommy Koh who can see things beyond just the S$. But frankly, since “NTUC Enterprise Co-operative, holding a 72.8 per cent stake, has irrevocably committed to accepting the offer”, it is almost a done deal bar the MAS regulatory approval; which is really just a rubber stamp exercise. We must not forget the Secretary General of NTUC is Ng Chee Meng, the defeated minister in the fight at Sengkang GRC in the last GE. I am not certain of the organisational chart of NTUC but surely… Read more »
Is our pineapple botak going to do something worthwhile for sinkies?
This regime has no soul la.
So where got sentimental feelings?
Social enterprise?
It is all about pragmatism and $$$.
At least TKL put his money where his mouth is, took a lot of flak and stood for election.
Tommy who? This whole life gov fed, self nominate sage should just retire quietly.
1. The PAP is broke. 2. The PAP is going for BROKE. 3. The PAP has Never Guarantee they are socialist pseudo democratic. In fact this PAP if one PAYs CLOSE and CAREFUL attention, PAP is ABROGRATING their social COMPACT with SGpns already 10 20 years ago when THEY IMPORT Trash to Compete with SG Rice Bowls. Like many many PAP past statements they emphasize, they nvr guarantee this nvr guarantee that. Most famous I can rmb by bloody hard when applicants for renting HDB flats ovwehwlemed, Mah said the ‘Govt’ – which Govt, what is Govt – never guarantee… Read more »
Who is listening to the Public? We can keep writing but really there is no response. All are arrogant be it be MAS or the Ministers. No one is serving the Public ‘s interest and only wanting to sell away our National pride.
When Singtel will shut down. Horrible Telco that does not serve the ppl but serve their Empire Cult. When will Singtel shit down and be replaced by one that serve the ppl?!?
Don’t make me laugh or get angry.
Even our public service Public Work Department, renamed as CPG was sold away to an Australian firm who later sold it to a China firm.
How about NOL sold to CMA CGM ?
How about NCS sold to SingTel?