NTUC designated as Politically Significant Person under foreign interference law

SINGAPORE: The National Trades Union Congress (NTUC) has been officially designated as a Politically Significant Person (PSP) under the foreign interference law, effective 26 July.

In a statement, the Ministry of Home Affairs (MHA) noted that NTUC had not submitted any representations in response to the Notice of Intended Designation issued on 11 July under the Foreign Interference (Countermeasures) Act (FICA).

On 26 July, NTUC received a notice confirming its designation, which mandates the organization to provide annual disclosures to the Registrar of Foreign and Political Disclosures.

This includes reporting political donations of S$10,000 or more, as well as details on foreign affiliations.

“These transparency requirements will mitigate NTUC’s risk of being a target of foreign interference,” said MHA.

The MHA had previously stated that this pre-emptive measure aims to safeguard NTUC against potential foreign interference, considering its close relationship with the ruling People’s Action Party.

Labour chief Ng Chee Meng expressed that NTUC has no objections to the designation, emphasizing that it is a preventive step against foreign interference.

“We support safeguarding Singapore’s sovereignty and will adhere to the requirements under FICA,” he said in a statement.

Mr Ng also assured that NTUC will persist in advocating for workers’ interests, including better wages, welfare, and career opportunities.

“We assure the public and our partners that our operations and services will continue unabated,” Mr Ng said.

Foreign Interference Law and Its Implications

Passed in October 2021 after extensive parliamentary debate and push-back from the Workers’ Party (WP) and Progress Singapore Party (PSP), FICA aims to enhance the government’s capability to prevent, detect, and disrupt foreign interference in domestic politics.

Entities defined as PSPs under FICA include political parties, political office holders, Members of Parliament, election candidates, and their agents.

The first individual designated as a PSP under FICA was Singaporean businessman Philip Chan Man Ping in February 2024, due to his susceptibility to foreign influence.

NTUC became the third organization designated as a PSP, following human rights groups Maruah and Think Centre.

NTUC’s symbiotic relationship with PAP

The relationship between NTUC and the PAP dates back to NTUC’s founding in 1961 by pro-PAP unionists.

NTUC and its affiliated unions have been members of the international labour movement since the 1960s and maintain foreign affiliations with organizations such as the International Trade Union Confederation (ITUC-Asia Pacific) and the ASEAN Trade Union Council.

NTUC has 1.3 million members and unites 58 trade unions, seven trade associations, seven social enterprises and other partners under its umbrella.

As at May 2024, about 45 per cent of union members were professionals, managers and executives.

NTUC and PAP’s close partnership was highlighted in a May Day Rally speech by then-Deputy Prime Minister Lawrence Wong in 2023, where he described the two as “sibling organisations” that collaborate closely.

Mr Wong emphasized that the basis of Singapore’s tripartism – collaboration between unions, employers, and the government – lies in the symbiotic partnership between NTUC and PAP.

NTUC’s chief Ng Chee Meng, who is also a former Cabinet minister, was co-opted into the PAP’s central executive committee (CEC) after losing his parliamentary seat to WP in the 2020 General Election.

Ng famously posted on his Facebook page back in 2021, saying, “Indeed, NTUC Singapore has been the symbiotic partner of the PAP to enable workers towards better lives. Our core purposes are the same, and wearing the logos this morning reminded me of service to country and to fellow Singaporeans”.

In addition to Mr Ng, several members of NTUC’s central committee hold political office or are sitting MPs.

This includes NTUC deputy secretary-general Heng Chee How, who serves as Senior Minister of State for Defence and is an MP for Jalan Besar GRC, and NTUC deputy secretary-general Desmond Tan, who is Senior Minister of State in the Prime Minister’s Office and an MP for Pasir Ris-Punggol GRC.

Concerns emerge over NTUC Income sale to Allianz

On 17 July,  German insurer Allianz proposed a S$2.2 billion cash deal to acquire a 51 per cent stake in Singapore’s home-grown Income Insurance.

The offer, priced at S$40.58 per share, represents a 37.3 per cent premium over Income’s net asset value per share as of 31 December 2023. If successful, this acquisition will propel Allianz from the ninth to the fourth-largest composite insurer in Asia.

NTUC Enterprise, currently holding a 72.8 per cent stake in Income Insurance, will remain a substantial shareholder if the sale is finalized.

Formerly known as NTUC Income Insurance Co-operative, it remains the only insurance co-operative in Singapore, serving around 2 million customers with life, health, general insurance, and investment-linked products.

Concerns about the possible sale have been voiced by former CEO of NTUC Income Co-operative Tan Suee Chieh and Ambassador-at-large Professor Tommy Koh.

Dr Koh emphasized that NTUC Income was founded to serve a social purpose and argued against selling it, while Mr Tan highlighted that Allianz’s profit-driven ethos contradicts the co-operative’s mission of maximizing social impact.

Public sentiment online reflects dissatisfaction with the corporatisation and potential sale, with customers feeling misled about the cooperative’s promises and benefits.

On 25 July, NTUC Enterprise chairman Lim Boon Heng assured Income Insurance will continue to provide affordable insurance for lower-income customers following the deal with Allianz.

He stated that NTUC Enterprise will remain an active shareholder to ensure the company adheres to its social commitments. His comments were in response to concerns about the acquisition by the German company.