The veteran diplomat argues that Income’s founding mission to serve Singaporeans remains valid, drawing support from citizens and experts alike.
SINGAPORE: Veteran diplomat Tommy Koh has voiced strong opposition to the proposed sale of a 51% stake in Income Insurance to German conglomerate Allianz for S$2.2 billion. Originally founded as a cooperative to provide affordable insurance to Singaporeans, Income’s social mission, according to Prof Koh, remains essential today.
Expressing his concerns on social media, Prof Koh said:
“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.
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.”
Prof Koh’s post quickly garnered support online, with many Singaporeans and prominent figures echoing his sentiments.
Former mainstream media editor PN Balji commented, “I am against selling Income. Will we dare sell SIA?” National University of Singapore Associate Professor Ben Leong added, “I agree that something is wrong with this picture.”
Former NTUC Income CEO Tan Kin Lian, who led the company for 30 years, also criticized the move, describing it as reflective of “bad practices of America” and warning that Singapore might follow its decline.
Under Mr. Tan’s leadership from 1977 to 2007, Income Insurance’s assets grew from S$28 million to over S$17 billion, and the company served more than one million policyholders.
Income Insurance: From Cooperative Roots to Corporate Entity
Founded in 1970 as NTUC Income Insurance Co-operative Limited, the company aimed to provide life insurance to blue-collar and low-income Singaporeans, a group underserved at the time. Supported by NTUC leader Devan Nair and then Finance Minister Goh Keng Swee, it was part of a broader initiative to address workers’ needs through social enterprises.
In 2022, the cooperative transitioned into Income Insurance Limited, a public non-listed entity. Despite the change, it has continued to emphasize affordable insurance and launched initiatives such as the Income Family Micro-Insurance and Savings Scheme (IFMISS) to support low-income households.
Concerns Over Foreign Ownership
Allianz has assured that NTUC Enterprise Co-operative Ltd will retain a significant stake in Income Insurance post-acquisition. However, many Singaporeans fear that selling to a profit-driven foreign conglomerate may erode the company’s original values.
Critics are questioning how the proceeds from the sale will benefit Singaporeans and whether the company’s affordable offerings will be compromised. Some view the sale as a departure from Income’s foundational mission as a social enterprise, labeling Allianz a “profit seeker” rather than a partner in serving the community.
Prof Koh and other commentators argue that preserving the social purpose of entities like Income and Fairprice is crucial, warning against prioritizing short-term financial gains over long-standing commitments to Singaporeans.
