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Business Times
07-05-2025
- Business
- Business Times
Income-Allianz deal timeline: A recap of the scuppered S$2.2 billion sale
[SINGAPORE] The proposed S$2.2 billion deal involving the sale of Singapore's Income Insurance to German insurer Allianz – which the government eventually called off – was a major talking point during the 2025 General Election campaigning. Here is a recap of what happened: Jul 17, 2024: Allianz offered to buy a majority stake in Income Insurance for around 1.5 billion euros, or S$2.2 billion. Allianz said it would offer S$40.58 per share for 51 per cent of the shares in Income Insurance. The German insurer projected that Income could return some S$1.85 billion in cash to its shareholders within the first three years after the transaction's completion. At the time, 72.8 per cent of Income was owned by National Trades Union Congress (NTUC) Enterprise Co-operative Limited, with the rest held by institutional and retail investors. Income had been a public non-listed company limited by shares since a 2022 corporatisation exercise that transformed the insurance business of NTUC Income Insurance Co-operative into Income Insurance. Jul 23-Aug 5, 2024: The deal raised questions over whether the proposed sale would be at odds with NTUC labour unions' aim to provide affordable insurance. On Jul 30, NTUC Enterprise said that Income's social enterprise model alone is not sufficient to shoulder growth in Singapore's competitive insurance environment. On Aug 5, NTUC's secretary-general Ng Chee Meng and president K Thanaletchimi released a joint statement explaining that Income needed adequate capital to remain financially stable. 'As a shareholder, NTUC Enterprise will continue to support Income. But it cannot do so alone,' they said. Aug 6, 2024: The issue was debated in Parliament, with Members of Parliament raising questions about the affordability and accessibility of insurance for the mass market. The Monetary Authority of Singapore (MAS) expected Income to fulfil its obligations to all policyholders under the terms of its existing insurance contracts and would hold Income and Allianz to these commitments, said Second Minister for Finance and MAS board member Chee Hong Tat in Parliament. Chee also said that MAS' regulations and guidance require insurers to maintain sufficient capital reserves and treat customers of participating policies fairly. After Aug 6, 2024: The Ministry of Culture, Community and Youth (MCCY) continued with due diligence and inquired further into the proposed deal. MAS provided the ministry with more details including Income's capital optimisation plan, as the regulator felt it could be relevant to the ministry's views on the deal. MCCY had not seen this information earlier. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Oct 14, 2024: The Allianz-Income deal was called off in Parliament, as the Singapore government assessed that it was 'not in the public interest' for the proposed transaction to proceed in its form. 'Our concern is only over the terms and structure of this specific transaction, particularly in the context of the preceding corporatisation exercise,' said Culture, Community and Youth Minister Edwin Tong in a statement. The government was still open to any new arrangement which Income may wish to pursue, whether with Allianz or other partners, as long as the concerns were fully addressed, he added. In a Facebook post, Prime Minister Lawrence Wong also said that the government's concerns were over the structure and terms of the offer, but that it remained open 'to a new deal that Income may pursue with Allianz or other partners, so long as our concerns are fully addressed'. Oct 16, 2024: Parliament passed an amendment to the Insurance Act, requiring MAS to consider MCCY's views when approving transactions involving insurers with cooperative roots. NTUC deputy secretary-general Desmond Tan revealed that NTUC's central committee was unaware of the capital extraction plan until Oct 14. Nov 14, 2024: Income and Allianz said in a bourse filing that discussions over the deal for a majority stake acquisition in the Singapore insurer were still ongoing, even after the government veto. Dec 16, 2024: Allianz officially withdrew its offer for a stake in Income, citing respect for the Singapore government's decision and emphasising its financial discipline. Both Income and NTUC Enterprise acknowledged the withdrawal and mentioned that they will explore other options to strengthen the insurer's financial resilience. Apr 26, 2025: Workers' Party (WP) chief Pritam Singh resurfaced the failed Income-Allianz deal at the party's second election rally, saying that no People's Action Party (PAP) labour MP had filed questions or spoke during the debate in Parliament when the issue was tabled. 'Elected PAP MPs who champion NTUC... should fight hard in Parliament when NTUC issues are raised, particularly issues that Singaporeans are concerned about,' Singh said. Apr 27, 2025: Labour chief Ng, who stood as a candidate for Jalan Kayu SMC, addressed at a PAP rally how the Allianz-Income deal was done in 'good faith' and complied with legal regulations. 'In NTUC, we will do our best, and sometimes I'm sorry that it's not good enough. But we will learn the right lessons and we will do better,' he said. Apr 27, 2025: Senior Minister Lee Hsien Loong said that he did not blame Ng or the labour party for the Income-Allianz deal that fell through. In a PAP rally speech, he flagged how the WP had abstained from voting on a Bill to amend a law that would allow the government to block the deal. Apr 28, 2025: Speaking to media, Singh said that SM Lee sidestepped the point he had raised about the absence of PAP labour MPs weighing in on the matter. While six PAP MPs and one WP MP had raised questions, the ratio of PAP MPs to WP MPs was about nine to one, he explained. Apr 28, 2025: At a WP rally, Harpreet Singh, who was a candidate in the party's Punggol GRC team, sought accountability from the PAP regarding Deputy Prime Minister Gan Kim Yong's involvement in the Income-Allianz deal. Apr 29, 2025: MAS chairman and DPM Gan clarified that the focus of the Income-Allianz deal was on the transfer of ownership and not capital extraction when MAS saw the proposal in July. He spoke on the sidelines of a walkabout in Punggol GRC and addressed the issue alongside the rest of the PAP slate for the constituency. PM Wong was also present.
Business Times
06-05-2025
- Business
- Business Times
Income-Allianz deal timeline: A recap of the proposed S$2.2 billion sale
[SINGAPORE] The proposed S$2.2 billion deal involving the sale of Singapore's Income Insurance to German insurer Allianz – which the government eventually called off – was a major talking point during the 2025 General Election campaigning. Here is a recap of what happened: Jul 17, 2024: Allianz offered to buy a majority stake in Income Insurance for around 1.5 billion euros, or S$2.2 billion. Allianz said it would offer S$40.58 per share for 51 per cent of the shares in Income Insurance. The German insurer projected that Income could return some S$1.85 billion in cash to its shareholders within the first three years after the transaction's completion. At the time, 72.8 per cent of Income was owned by National Trades Union Congress (NTUC) Enterprise Co-operative Limited, with the rest held by institutional and retail investors. Income had been a public non-listed company limited by shares since a 2022 corporatisation exercise that transformed the insurance business of NTUC Income Insurance Co-operative into Income Insurance. Jul 23-Aug 5, 2024: The deal raised questions over whether the proposed sale would be at odds with NTUC labour unions' aim to provide affordable insurance. On Jul 30, NTUC Enterprise said that Income's social enterprise model alone is not sufficient to shoulder growth in Singapore's competitive insurance environment. On Aug 5, NTUC's secretary-general Ng Chee Meng and president K Thanaletchimi released a joint statement explaining that Income needed adequate capital to remain financially stable. 'As a shareholder, NTUC Enterprise will continue to support Income. But it cannot do so alone,' they said. Aug 6, 2024: The issue was debated in Parliament, with Members of Parliament raising questions about the affordability and accessibility of insurance for the mass market. The Monetary Authority of Singapore (MAS) expected Income to fulfil its obligations to all policyholders under the terms of its existing insurance contracts and would hold Income and Allianz to these commitments, said Second Minister for Finance and MAS board member Chee Hong Tat in Parliament. Chee also said that MAS' regulations and guidance require insurers to maintain sufficient capital reserves and treat customers of participating policies fairly. After Aug 6, 2024: The Ministry of Culture, Community and Youth (MCCY) continued with due diligence and inquired further into the proposed deal. MAS provided the ministry with more details including Income's capital optimisation plan, as the regulator felt it could be relevant to the ministry's views on the deal. MCCY had not seen this information earlier. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Oct 14, 2024: The Allianz-Income deal was called off in Parliament, as the Singapore government assessed that it was 'not in the public interest' for the proposed transaction to proceed in its form. 'Our concern is only over the terms and structure of this specific transaction, particularly in the context of the preceding corporatisation exercise,' said Culture, Community and Youth Minister Edwin Tong in a statement. The government was still open to any new arrangement which Income may wish to pursue, whether with Allianz or other partners, as long as the concerns were fully addressed, he added. In a Facebook post, Prime Minister Lawrence Wong also said that the government's concerns were over the structure and terms of the offer, but that it remained open 'to a new deal that Income may pursue with Allianz or other partners, so long as our concerns are fully addressed'. Oct 16, 2024: Parliament passed an amendment to the Insurance Act, requiring MAS to consider MCCY's views when approving transactions involving insurers with cooperative roots. NTUC deputy secretary-general Desmond Tan revealed that NTUC's central committee was unaware of the capital extraction plan until Oct 14. Nov 14, 2024: Income and Allianz said in a bourse filing that discussions over the deal for a majority stake acquisition in the Singapore insurer were still ongoing, even after the government veto. Dec 16, 2024: Allianz officially withdrew its offer for a stake in Income, citing respect for the Singapore government's decision and emphasising its financial discipline. Both Income and NTUC Enterprise acknowledged the withdrawal and mentioned that they will explore other options to strengthen the insurer's financial resilience. Apr 26, 2025: Workers' Party (WP) chief Pritam Singh resurfaced the failed Income-Allianz deal at the party's second election rally, saying that no People's Action Party (PAP) labour MP had filed questions or spoke during the debate in Parliament when the issue was tabled. 'Elected PAP MPs who champion NTUC... should fight hard in Parliament when NTUC issues are raised, particularly issues that Singaporeans are concerned about,' Singh said. Apr 27, 2025: Labour chief Ng, who stood as a candidate for Jalan Kayu SMC, addressed at a PAP rally how the Allianz-Income deal was done in 'good faith' and complied with legal regulations. 'In NTUC, we will do our best, and sometimes I'm sorry that it's not good enough. But we will learn the right lessons and we will do better,' he said. Apr 27, 2025: Senior Minister Lee Hsien Loong said that he did not blame Ng or the labour party for the Income-Allianz deal that fell through. In a PAP rally speech, he flagged how the WP had abstained from voting on a Bill to amend a law that would allow the government to block the deal. Apr 28, 2025: Speaking to media, Singh said that SM Lee sidestepped the point he had raised about the absence of PAP labour MPs weighing in on the matter. While six PAP MPs and one WP MP had raised questions, the ratio of PAP MPs to WP MPs was about nine to one, he explained. Apr 28, 2025: At a WP rally, Harpreet Singh, who was a candidate in the party's Punggol GRC team, sought accountability from the PAP regarding Deputy Prime Minister Gan Kim Yong's involvement in the Income-Allianz deal. Apr 29, 2025: MAS chairman and DPM Gan clarified that the focus of the Income-Allianz deal was on the transfer of ownership and not capital extraction when MAS saw the proposal in July. He spoke on the sidelines of a walkabout in Punggol GRC and addressed the issue alongside the rest of the PAP slate for the constituency. PM Wong was also present.
Business Times
30-04-2025
- Business
- Business Times
NTUC will collaborate with tripartite partners to protect all workers from tariff impact
[SINGAPORE] The National Trades Union Congress (NTUC) is closely monitoring the impact of the global tariff situation on workers, and – as part of the Singapore Economic Resilience Taskforce – will work with tripartite partners to support them. 'As global events reshape our world in these uncertain times, Singapore is not immune, especially to the impact of intensifying global trade tensions,' said NTUC president K Thanaletchimi and secretary-general Ng Chee Meng in a joint May Day message on Wednesday (Apr 30). The labour movement will help workers overcome challenges and seize new opportunities, they added. Thanaletchimi and Ng emphasised NTUC's strong relationships with its tripartite partners: the Ministry of Manpower and the Singapore National Employers Federation. In collaborating, the three 'reinforce Singapore's stability and resilience and ensure shared economic and social progress', they said. The labour movement's 'deep-rooted symbiotic relationship' with the government continues to uplift workers and ensure sustainable progress for the Republic, they added. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Support for all groups The labour leaders also gave an overview of what NTUC is doing for different groups of workers, from young people to working caregivers. Through tailored programmes for youth members, NTUC helps them transition from school to work. The NTUC Starter Awards, introduced in 2024, is a bond-free scholarship and leadership programme to support them in their education and leadership skills development. For professionals, managers and executives (PMEs), NTUC has initiatives for mentorship and guidance on career progression. As for older workers, NTUC has 'long advocated' for them to remain in the workforce for as long as they like. In the Tripartite Workgroup on Senior Employment, NTUC will endeavour to provide them with upskilling opportunities and workplace support. For working caregivers, NTUC contributed to the Tripartite Guidelines on Flexible Work Arrangement Requests, by which employers are obliged to fairly consider their staff's flexible work requests. Similarly, platform workers benefit from the protections under the Platform Workers Act. The labour movement has also pushed for the Workplace Fairness Act to ensure 'fair opportunities and a level playing field amidst foreign competition' for workers, especially PMEs. Under the Complementarity Assessment Framework for Employment Pass (EP) applicants, NTUC awards the Strategic Economic Priorities bonus to employers that implement local workforce training, to ensure that EP holders complement local workforce development. The labour leaders also highlighted how NTUC's Company Training Committee initiative has been synchronised with SkillsFuture Singapore's SkillsFuture Queen Bee programme, in which larger companies help to upskill suppliers. 'More workers across a broader ecosystem of suppliers will be upskilled, while businesses enjoy productivity gains,' they said.
Straits Times
25-04-2025
- Business
- Straits Times
May Day Awards: SM Lee among 180 awardees feted for championing workers
NTUC President K Thanaletchimi presenting the Distinguished Comrade of Labour Award to SM Lee Hsien Loong at the NTUC May Day Awards 2025 Ceremony on April 25. ST PHOTO: GAVIN FOO SINGAPORE - Senior Minister Lee Hsien Loong was accorded the labour movement's top May Day award on April 25 for four decades of dedication towards improving the lives and livelihoods of workers. National Trades Union Congress president K. Thanaletchimi presented the Distinguished Comrade of Labour award to SM Lee at the yearly May Day awards ceremony held at Marina Bay Sands Expo and Convention Centre. NTUC said in a statement that the highest accolade is conferred on people who have made unique and supreme contributions to the labour movement. 'In his many years of public service, he has been unwavering in his dedication to improving the lives and livelihoods of our workers and Singaporeans. Under his leadership, we were able to emerge stronger together from economic crises,' said Ms Thanaletchimi in her speech at the ceremony . Addressing a roomful of about 1,200 guests including awardees, their families, colleagues, union leaders and tripartite partners, she said: 'Brother Hsien Loong has embodied NTUC's principle, that every worker matters.' She added that it is tripartism – the three-way relationship between employers, unions and the Government – that sets Singapore apart, enabling the workers to remain resilient and unified in the face of adversity. SM Lee joins seven other past recipients of the award since its inception in 1963, including the likes of his late father, founding prime minister Lee Kuan Yew, former president of Singapore National Employers Federation (SNEF) Stephen Lee and former prime minister Goh Chok Tong. The 2025 list honoured a record 180 awardees. NTUC deputy secretary-general Heng Chee How, who read out the top award's citation, said NTUC benefitted from SM Lee's strong support for a wide range of initiatives including its Job Security Council and Company Training Committee grant to help companies transform their businesses and workforce. SM Lee 'led the nation to take difficult but necessary measures, such as cutting Central Provident Fund (CPF) contributions to cut costs and preserve jobs', said NTUC. In an April 20 interview with NTUC, SM Lee recounted the Government's decision to cut CPF contribution rates in 1985. 'It was our first recession since independence, and a very severe one.' 'In the end, we had no choice. We had to persuade the workers. It is very drastic, but if we do not do this, we may be in for serious trouble,' he said . He was then Minister of State for Defence and Trade and Industry. But it was through crises that personal relationships, confidence and trust are built, noted SM Lee, and this was something his team built on for subsequent occasions during crisis and non-crisis times. He said: 'In crisis, you are dealing with serious problems. In non-crisis, the temptation is to say: 'Nothing needs to be done. We are fine, and business is good. Why do we need to go for retraining?' 'But it is when the business is good that you have a chance to do these things.' He added that other crises like the Asian Financial Crisis, Global Financial Crisis and Covid-19 pandemic did come along. 'The world is in turmoil, and we do not know what storms are coming. After Covid-19, we are strengthened, and we have to be prepared for something new.' During the NTUC interview, he also fondly recalled early memories of the unions as a young boy, when trade unionists would go to his family home then in Oxley Road during election campaigns and for meetings. 'There was one holiday we went to Fraser's Hill. Must have been 1959, and I remember Dominic Puthucheary was there − he was Janil's father,' he said. The elder Puthucheary was a trade unionist and founding member of the PAP who later went on to join Barisan Sosialis, a party formed by left-wing PAP members. The younger Puthucheary is now Senior Minister of State for Digital Development and Information and Health. SM Lee also mentioned seeing other founding PAP members Fong Swee Suan, Samad Ismail and Lim Chin Siong in his childhood years. 'I did not know what all this was about, but this is a trade union movement, and I believed that they were fighting for a good cause, for the welfare of the people.' When NTUC asked about the significance of the NTUC-PAP symbiotic relationship and how it helps workers, SM Lee said it's 'basically getting two for the price of one'. 'Because you join a union, you get a government. You elect the Government, the Government works closely with the union leadership in order to make good things happen for workers in companies, in industries and in the economy,' he said, noting that unions in other places have a political party that represents them. Australia's Labour Party and United Kingdom's Labour Party are such examples. 'At the same time, we are able to do it in a way which keeps the economy growing and the employers accept that this is a good way to do things in Singapore.' Among others who received awards was Mr Robert Yap, former president of SNEF , who received a Distinguished Service (Star) award. NTUC said during Mr Yap's decade-long tenure, he was instrumental in supporting the formation of the Tripartite Workgroup on Lower-Wage Workers and advocating for structured wage progression. He was also a strong advocate for professionals, managers, and executives (PMEs), shaping career mobility and fair employment policies through the joint NTUC-SNEF PME Taskforce. He said the most challenging period was during the Covid-19 pandemic when businesses across sectors experienced sharp declines and many lost their jobs. Another challenge was advocating for the progressive increase in the retirement and re-employment ages. 'What stood out to me was how essential open dialogue and collaboration were during these challenging times,' said Mr Yap. Migrant domestic worker Tusirah Suradi received a Partner of Labour Movement award, a recognition of her dedication and passion as a volunteer at the Centre for Domestic Employees (CDE). In its award citation, NTUC said as caregiver to an elderly employer, she provided support and generously shared advice and knowledge with other domestic workers on caring for older persons, among other contributions . Speaking to The Straits Times ahead of the ceremony, Ms Suradi said the most memorable moments came during regular outreach activities with other domestic migrant workers on her days off . She said: 'Many open up about the challenges they face such as homesickness and communication issues. I do my best to listen, offer advice and support them in finding ways to manage their situations. 'I hope more migrant domestic workers will step forward and join CDE as volunteers.' Sharon Salim is a business correspondent at The Straits Times, with a focus on jobs, workplace culture and trends. Join ST's Telegram channel and get the latest breaking news delivered to you.
