Allianz-Income saga becomes a flashpoint in Singapore's election
(Bloomberg) — The blocked sale of Income Insurance Ltd. to Allianz SE has emerged as a political flashpoint in Singapore's elections, with the ruling party drawing criticism for its response to the controversial deal last year.
The issue has centered around the chief of Singapore's umbrella labor movement — who is running for a seat in parliament — and how he pushed for the S$2.2 billion ($1.7 billion) deal before it was ultimately aborted by the German insurer.
In the past few days, some opposition party members and a former chief executive of the Singapore insurer have revived a debate around the months-long saga, and used it to call for more accountability from the government and leaders of the union that owns Income.
Ng Chee Meng, the secretary-general of the National Trades Union Congress, is a member of the ruling People's Action Party. A former Cabinet minister who lost his seat in the last general election, Ng is running in a new single-member constituency against a candidate from the Workers' Party, the country's largest opposition party.
Last July, German insurance Allianz said it planned to acquire a majority stake in Income Insurance, which used to be called NTUC Income. The proposed deal sparked a public outcry from individuals who were worried that it could undermine Income's social mission of providing affordable insurance to Singaporeans.
In October, Singapore authorities blocked the deal on the grounds of 'public interest,' and amended a law to require further government approval for deals that involve insurers that are cooperatives or linked to cooperatives. Allianz withdrew its offer in December. The government has said its blocking of the Allianz-Income deal was not a signal that Singapore is closing the door to foreign investments.
Over the weekend, Ng was criticized for not addressing the public backlash surrounding the proposed deal before it was scrapped. In early August, a statement from Ng and the union's president had laid out the reasons for the sale, and said the insurer had provided assurances that it would keep premiums affordable for policyholders.
Pritam Singh, the chief of the Workers' Party, said labor members of parliament from the ruling party had also failed to question the merits of the deal. 'Not a single PAP labor MP asked questions about this issue in Parliament in August 2024,' he said in a rally on Saturday.
Tan Suee Chieh, a former CEO of NTUC Income, called for Ng to account for his role and decisions in a letter to voters that was posted on social media. Tan also shared an open letter to Singapore Deputy Prime Minister Gan Kim Yong, who is also Chairman of the Monetary Authority of Singapore, asking him to explain how the events around the deal unfolded.
Ng, in response, defended the decision making around the deal, and said the proposed transaction was done 'in good faith' and in compliance with regulations. He also said there is an ongoing review to learn lessons from the case.
'We could not have known the law would be changed, but we sincerely respected the government's view,' he told voters during a rally on Sunday.
Speaking after Ng, Senior Minister Lee Hsien Loong also defended the labor chief, and said the opposition had not voted against the deal.
Singaporean voters are set to head to polls on May 3, after a nine-day campaign that is one of the world's shortest. Other issues that have fueled political debates during this election are the cost of living and recent hikes in the country's goods and services tax.
More stories like this are available on bloomberg.com
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