Politics
He Ting Ru confronts rationale of Income sale with facts that it is actually doing well
On Tuesday (6 August), Ms He Ting Ru, Workers’ Party MP for Sengkang GRC, questioned the proposed sale of Income Insurance to Allianz. Despite Income’s strong financial health, Minister Chee Hong Tat responded, emphasizing the need for competitive markets.
On Tuesday (6 August), Ms He Ting Ru, Workers’ Party Member of Parliament for Sengkang GRC, posed several critical questions in Parliament concerning the proposed sale of Income Insurance to the German multinational company Allianz.
Last month, Allianz announced that it was planning to buy a majority stake in Income for S$2.2 billion (US$1.6 billion). It said it would offer S$40.58 per share for 51 per cent of shares in the company.
The proposed deal, which will result in NTUC Enterprise losing its majority share, was met with concerns from members of the public and experts, who were worried that Income — formerly NTUC Income as a cooperative insurance company — would lose sight of its roots as a co-operative and social enterprise.
Discussions about the deal took up the bulk of question time during Tuesday’s sitting, with Members of Parliament (MPs) raising questions about Income’s social mission and MAS’ assessment as a regulator.
Minister of State for Culture, Community, and Youth Alvin Tan addressed Parliament, discussing the financial sustainability of social enterprises and the competitive landscape of Singapore’s insurance market. This comes in the context of the proposed sale of Income to German multinational company Allianz.
Minister Tan emphasized that if a social enterprise cannot sustain itself financially and requires government subsidies, it may be necessary for the government to take over such services. “Taxpayers must also be prepared to pay their share of taxes to fund the service,” he added.
NTUC Enterprise previously noted that a social enterprise model alone could not support growth in Singapore’s evolving insurance environment, citing Income’s loss of key contracts to global and regional competitors. The organization pointed out that the circumstances in which Income was founded in 1970 are vastly different from today’s landscape—a sentiment echoed by Mr Tan.
“It is now a very competitive market with many options available to Singaporeans. The government has also significantly strengthened our social support system,” Mr Tan stated, highlighting heavily subsidized public healthcare, as well as MediSave, MediShield Life, MediFund, and CPF Life.
He noted that the premiums for several of Income’s schemes are not the most affordable in the market. “The point is that Singaporeans, including lower-income workers, are well served by our national insurance programs and our competitive and well-regulated insurance industry,” he said. “All these provide Singaporeans with wider choices and better value in insurance services and products.”
Deputy chairman of the Monetary Authority of Singapore (MAS) Mr Chee Hong Tat also said the central bank would hold Income and Allianz to account for their commitments to honour existing policies.
Mr Chee, who is also Transport Minister and Second Minister for Finance, said MAS believes that a competitive market is the most effective way to “meet the insurance needs of Singaporeans” and facilitate access to affordable insurance options and good service over the longer term.
For existing policyholders, MAS expects Income to fulfil its obligations under the terms of its existing contracts. “Should the proposed deal be approved, there will be no change to the terms and conditions of existing insurance contracts,” Mr Chee assured.
Governance and Controls
Ms He highlighted a past criminal case involving Allianz in the US, where the company faced allegations of defrauding investors, resulting in its US subsidiary pleading guilty to criminal securities fraud. She inquired if the Monetary Authority of Singapore (MAS) had looked into this issue and whether MAS was satisfied that Allianz’s corporate governance and controls had been strengthened. Given that Income Insurance serves 1.7 million Singaporeans with significant market shares in motor, property, and health insurance, Ms He emphasized the importance of ensuring there are no residual concerns.
In response, Mr Chee clarified that the Allianz Global Investors entity involved in the US criminal case is not linked to the entity entering the deal with Income. He explained that the US issues were related to specific products not managed or offered by the Allianz entity in Singapore. The US Department of Justice investigation did not reveal any misconduct involving other entities within the Allianz Group, including the Singapore entity.
Employment and Operational Review
Ms He raised concerns about potential redundancies and job losses, noting Allianz’s announcement of a strategic and operational review aimed at enhancing the value of existing businesses. She pointed out that Income Insurance employs approximately 1,900 people and asked if the government was aware of any discussions about possible job losses. She also questioned whether MAS would consider seeking guarantees from Allianz regarding the employment situation of existing employees as part of its regulatory assessment.
Mr Chee acknowledged that such reviews are common in mergers or acquisitions aimed at improving efficiency. However, he stated it was premature to discuss potential job losses as the proposal had not yet been approved. While he emphasized that MAS does not directly regulate employment practices but expects compliance with employment laws, he did not directly address whether MAS would seek guarantees from Allianz regarding the employment situation of existing employees. He assured that in cases of unfair treatment, the Ministry of Manpower and NTUC would support the affected workers.
Financial Sustainability of Income
Lastly, Ms He referred to a report by Zero One Research from December 2023, which noted that the capital adequacy ratio of Income was approximately 193% under the RBC2 framework, significantly exceeding the minimum required level of 120% under Singapore’s Insurance Act. She sought clarity on whether there were concerns about Income’s sustainability given this healthy buffer.
Mr Chee responded by explaining that the healthy state reported by Ms He was due to NTUC Enterprises injecting additional capital into Income. He stressed that this does not imply immediate financial problems but ensures long-term strength to meet obligations and protect policyholders’ interests. He emphasized that insurance is a long-term business and having a strong insurer is crucial for future stability.
While Mr Chee addressed concerns about governance and financial sustainability with detailed explanations, providing assurance about Allianz’s governance and the long-term strength of Income, his response on employment and operational review did not directly address the query about seeking employment guarantees from Allianz, leaving some concerns unresolved.
This post was first published on Gutzy.asia
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Tan Kiat How: Police called after resident ‘became aggressive’ at meet-the-people session
Senior Minister of State Tan Kiat How shared on TikTok that police were called to his meet-the-people session (MPS) in Bedok on Monday (17 Sept) evening after a resident ‘became a little more aggressive’, reportedly over a job issue. While the PAP MP emphasized the efforts made to assist residents, some netizens questioned the volunteers’ handling of the situation and urged more proactive measures from the MP.
SINGAPORE: Police were called to a meet-the-people session (MPS) in Bedok after a resident became aggressive, causing a disturbance, according to Member of Parliament (MP) for East Coast GRC Tan Kiat How.
Mr Tan, who represents the Kampong Chai Chee ward, addressed the incident in a TikTok video posted on Monday (17 September).
In the video, Mr Tan, who is also Senior Minister of State for National Development, emphasised the need for mutual respect at these sessions, which are intended to be safe spaces for both residents and volunteers.
“It was unfortunate that the police had to be called to MPS today when a resident became a little more aggressive,” Mr Tan said, acknowledging the incident that occurred during the Monday MPS session at Block 408 Bedok North Avenue 2.
Mr Tan expressed empathy for the challenges faced by residents but urged individuals attending MPS to remain respectful towards volunteers.
“Sometimes you see such cases at MPS, where one of the residents get more aggressive and can be a little bit more violent,” he noted.
He added that while efforts are made to assist residents, certain matters are beyond their control.
“For example, we can’t write to a government agency to demand the agency to offer a job to a person … but we can facilitate and make sure that opportunities are available for our residents,” he explained.
@tankiathow It was unfortunate that the police had to be called to #MPS today when a resident became a little more aggressive. We always do our best to help #KampongChaiChee residents, but some things are beyond our control. Let’s work towards mutual respect and ensure MPS remains a safe space for both residents and volunteers. #caringeastcoast
Netizens Question Volunteers’ Handling of Situation and Call for Greater Action from MP
The incident drew numerous responses on TikTok, with some expressing support for Mr Tan and others sympathising with the unnamed resident.
One comment suggested that the individual may have been “desperate” for a solution to their issue, while another urged patience, noting that not all cases can be resolved immediately.
Separately, Mr Tan responded to one user by confirming that he had previously helped the resident’s parents.
Some questioned whether the issue arose from a lack of tact by certain volunteers in handling the situation, suggesting that they receive proper training to address residents’ concerns effectively.
In response, Mr Tan emphasized that his volunteers always do their best and that empathy is crucial in such situations.
Another user noted that empathy should be mutual, suggesting that while residents are trying their best, they may feel they have no other solutions, urging Mr Tan to show greater understanding.
One comment pointed out that something significant might have affected the resident, possibly leading them to drastic actions, and called for more proactive measures from the MP rather than just expressing empathy.
This is not the first time an MPS has been marked by aggression.
In 2018, Jurong GRC MP Tan Wu Meng was assaulted by a 32-year-old man, leaving him with injuries.
The assailant was arrested after rushing into the MPS area and attacking Dr Tan.
Similarly, in 2009, Ang Mo Kio GRC MP Seng Han Thong was attacked when a resident doused him with paint thinner and set him on fire. Mr Seng survived but required extensive medical treatment.
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Netizens criticise SM Lee’s ‘fearmongering’ remarks, call for stronger opposition for checks and balances
In a recent speech, Senior Minister Lee Hsien Loong warned that slimmer electoral margins could restrict the government’s ability to make long-term decisions. Netizens criticised him for perceived fearmongering ahead of upcoming election, arguing that despite a strong ruling party margin after GE2020, issues like rising prices persisted. Some called for a stronger opposition to ensure better checks and balances.
During his speech at the Annual Public Service Leadership Ceremony 2024 on 17 September, Senior Minister Lee Hsien Loong cautioned that both the public service and Singaporeans need to be aware of the risks if politics becomes more fiercely contested.
He warned that if electoral margins get slimmer, the government will have less political space to do the right things.
“It will become harder to disregard short-term considerations in decision-making. The political dynamics will become very different,” he said.
Mr Lee, who served as Prime Minister for 20 years, highlighted that Singapore has successfully navigated its six decades of nationhood by effectively managing domestic issues and asserting itself internationally.
“All this has only been possible because Singapore has been well-governed all these years,” he added, emphasising three key factors: effective policies and politics, a strong public service, and a positive relationship between public service and political leadership.
SM Lee praised Singapore’s approach to public finance, noting that despite political pressures to increase spending or lower taxes, the country has adhered to fiscal discipline by avoiding deficits and building reserves through prudent savings and investments.
He detailed the process behind the Goods and Services Tax (GST) increase, which was carefully planned and communicated over several years.
“In the 2011 General Election campaign, more than a decade ago, we said that we did not need to increase the GST just yet. In the 2015 General Election campaign, we assessed we could still hold on, and said we did not need a GST increase immediately, but we could see the need for one down the road. ”
Following that election, the Ministry of Finance reviewed projections and determined that an increase was inevitable within a decade, he said.
“The Minister for Finance Heng Swee Keat announced this in the 2018 Budget and to make sure – make absolutely sure – everyone got the message, I said this again the next year at the 2019 PAP Party Convention. ”
“We knew it would cost the ruling party some votes, but we felt strongly that we needed to be responsible and upfront with voters,” he said.
While acknowledging Singapore’s significant progress since 1959, he also outlined future challenges, including global uncertainties such as great power competition, deglobalisation, and climate change.
He referenced Prime Minister Lawrence Wong’s plans under the Forward Singapore initiative, which focus on economic upgrading, maintaining international relevance, supporting an ageing population, and consolidating social harmony.
SM Lee also reflected on Jean-Claude Juncker’s observation that governments often know the right actions to take but avoid them due to electoral risks, leading to populism and short-termism in many countries.
He warned that Singapore, despite its current stability, is not immune to these pressures.
He noted that as growth becomes harder to achieve, revenues less buoyant, and political competition more intense, the country faces potential risks.
Netizens highlight persistent issues despite PAP’s strong electoral margin post-GE2020
However, comments on CNA’s Facebook post reveal differing opinions from those of SM Lee.
Some netizens accused SM Lee of employing fearmongering tactics to secure a stronger mandate in the upcoming election, arguing that such remarks aim to manipulate voters rather than address their concerns.
Others suggested that closer electoral margins are beneficial as they indicate public willingness for change and serve as a check on potential abuses of power, advocating for a fairer and more accountable system.
Additionally, some comments pointed out that even with a strong electoral margin for the ruling party in the 2020 General Election, issues like rising prices and COE and HDB costs persisted.
A netizen argued that comparing Singapore’s governance style to the populist approaches of larger countries like China, India, or the USA is unfair, noting the complexity of managing such vast nations.
Calls for stronger opposition to strengthen checks and balances
Some called for a stronger opposition presence to provide necessary checks and balances on the ruling party and ensure greater accountability.
Another comment highlighted that despite the incumbent party’s strong position in elections, there is always a need for quality opposition to challenge their policies and address key issues.
A netizen criticised the government’s focus on high salaries rather than addressing citizens’ struggles with the cost of living, emphasizing that a responsible government should prioritize the needs of its people.
Additionally, a netizen expressed frustration over how the government’s policies have left her parents in a continuous financial struggle, particularly noting her sick and weak parent’s ongoing worries despite the government’s claims of success.
She compared their situation unfavourably with those in other countries who, she feels, are better off despite lacking similar management systems.
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