Diplomat Tommy Koh Stands by Former NTUC Income CEO Amid Controversy Over Allianz Acquisition

SINGAPORE: Veteran diplomat Tommy Koh has come to the defense of former NTUC Income CEO Tan Suee Chieh, asserting that Income Insurance should not be sold to a foreign entity, following allegations from Income and NTUC Enterprise that Mr. Tan has made “unfair aspersions” regarding the proposed acquisition by Allianz.

German conglomerate Allianz is seeking to acquire a 51% stake in Income Insurance for approximately $1.6 billion. Pending regulatory approval, NTUC Enterprise Co-operative Ltd will retain between 21.8% and 49% of shares, depending on decisions made by other shareholders.

While NTUC leaders have defended the deal, it has raised concerns among Singaporeans about the implications of foreign ownership on Income’s foundational values, which focus on providing affordable insurance solutions for the working population.

Prof. Koh, along with Mr. Tan, has publicly criticized the deal, stating, “I don’t think it’s a good idea to sell INCOME. It was founded to serve a social purpose and a social need, which remain valid today. I wish to argue that INCOME and Fairprice should never be sold.”

In an interview with CNA last month, Mr. Tan described the transaction as a “breach of good faith,” expressing disappointment over the sale of majority ownership to a commercial European insurer. He also raised concerns regarding the fair treatment of minority shareholders during the corporatization process.

On August 2, Mr. Tan published an open letter on Facebook directed at the Monetary Authority of Singapore (MAS) chairman, Gan Kim Yong, urging regulatory intervention and criticizing various aspects of the deal. This letter elicited a strong rebuttal from Income and NTUC Enterprise, yet Mr. Tan has remained resolute.

In response to NTUC Secretary-General and former ruling party minister Ng Chee Meng’s assertion that additional resources are necessary for Income to sustain its social mission, Mr. Tan posted a list of insurance cooperatives and social enterprises worldwide that have thrived while maintaining a significant social impact. He emphasized that these organizations did not need to expand regionally or be acquired by a listed company to prosper.

Mr. Tan reiterated his call for MAS to thoroughly scrutinize the proposed sale of NTUC Income to Allianz for the benefit of Singaporeans. He challenged Income and NTUC Enterprise to disclose relevant board minutes and documents pertaining to discussions referenced in his initial open letter, allowing MAS and the public to “judge the matter for themselves.”

He stressed that if the sale proceeds, NTUC as a minority shareholder would lack the power to ensure that Allianz, a profit-driven corporation, prioritizes NTUC’s social mission over its profit motives. “The NTUC Joint Statement has not demonstrated that Allianz has provided a legally binding commitment to prioritize NTUC’s social mission over its own profits,” Mr. Tan argued.

Prof. Koh expressed his support for Mr. Tan’s stance in a Facebook post on August 6, calling on the Singapore Parliament to take appropriate action. He stated, “INCOME is the people’s insurance company. It should not be sold and certainly not to a foreign company. It is part of our social compact.”