Veteran diplomat Tommy Koh has once again spoken up on his reservations towards the plan to sell a majority stake in the former NTUC Income co-operative to a foreign multinational.
On Wednesday (31 July), Prof Koh posted on his Facebook page that he was “not convinced” by NTUC Enterprise’s explanation regarding the Allianz-Income deal.
The proposed sale of homegrown Income Insurance to global insurance group Allianz has led to public outcry, with Professor Koh being one of its loudest critics.
Since its announcement on 17 July, the deal has raised questions over Income’s commitment to its social obligation of providing affordable insurance for Singaporeans.
Prof Koh said Income had in the past launched schemes primarily to look after the insurance needs of the low income group or those with special needs.
He is doubtful that a foreign insurance company will do the same, he added.
NTUC Enterprise’s chairman Lim Boon Heng, Income’s chief executive Andrew Yeo, and Income board’s lead independent director Joy Tan had spoken to The Straits Times (ST) on Monday (29 July) clarifying their reasons for the sale and addressing public concerns.
In the interview, Mr Lim had mentioned that they expect Income partnership to maintain Income’s philosophy even after the deal closes.
He said that social missions such as the one held by Income is no longer restricted to social enterprises, and that businesses around the around are increasingly taking up “doing well to do good” as their objectives.
At the time when Income was set up, the cooperative concept was seen as the ideal structure to deliver the objective of providing for the financial well-being of the people and their families, particularly the lower-income, he said. “Today, there are other structures that are possible.”
Mr Yeo also said that “as responsible stewards”, they cannot look at the business “as it is now”. They have to prepare themselves for the future. He added:
Other international insurers are willing to compete at our level, bringing down their prices, sometimes undercutting us to gain access to the segments that they are targeting. Income’s presence in those spaces ensures that we keep insurance affordable.
Prof Koh, however, disagreed with what was said.
Prof Koh reiterated that Income Insurance was founded by former Deputy Prime Minister Goh Keng Swee to provide accessible and affordable insurance to “the ordinary people of Singapore”.
“For the past 54 years, it has fulfilled its mission and looked after the insurance needs of 2 million customers,” he said.
Source: Tommy Koh on Facebook
He cited the Family Micro-Insurance and Savings Scheme, a free insurance scheme for low-income families with young children as an example, as well as the fact that Income launched insurance coverage for children with autism.
“I don’t think a foreign insurance company would have launched such products.”
Prof Koh went on to point out that Income has been a profitable company since its establishment.
He then questioned NTUC Enterprise on the need to sell Income. He asked whether it is because Income “will make a profit of $1 billion”.
Mr Lim had mentioned in The Straits Times interview that Income needed a sustainable model that is resilient into the future.
He said it “would not be a very prudent policy” if NTUC Enterprise devotes all its financial resources to Income.
He also said that the earnings they receive through selling their shares will go into education and health ventures.
Ending his post on a more emotional note, Prof Koh lamented the situation faced by the younger generation. He said:
I feel sad that for many younger Singaporeans nothing is sacred and everything is for sale.
He also urged people to remember the words of Singapore’s first Foreign Affairs Minister, S. Rajaratnam.
“He warned us not to become a nation of people who know the price of everything but the value of nothing,” he said.
Mr Lim had echoed this sentiment in the interview, but he added a caveat that emotions alone cannot be the guidance to people’s actions.
He had argued that if they “blindly follow” these emotions, that will be what compromises the society’s interest instead.
Also read: ‘Should never be sold’: Tommy Koh speaks up against Income Insurance-Allianz deal
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