The Allianz-Income deal has received much backlash from Singaporeans. Income Insurance was established for social need and to provide affordable insurance to ordinary Singaporeans. There is doubt, however, that Allianz is aligned with the same objective. It was only recently that its CEO Oliver Baete said he wanted to “build a resoundingly profitable business”. This does not sound like it goes in tandem with his commitment to social and sustainability causes.
The issue is still attracting discussion after a week. Yesterday, Prof Tommy Koh made another comment, saying that he is not convinced by the deal. He does not think that a foreign insurance company like Allianz will bother with the kind of affordable products Income has been providing.
Income is not a loss making company in need of rescue. In its 54 year history it has always been a profitable company. In view of this fact why does NTUC Enterprise wish to sell Income? Is it because it will make a profit of $1 billion?
While it is natural to seek profits, Income must place people first and not lose sight of its purpose.
Former NTUC Income CEO Tan Suee Chieh remarked that Income can be outstanding even without a foreign group and reminded everyone that it should prioritise people over profits.
Income Insurance must remain dedicated to serving the people of Singapore and not the shareholders of Allianz Europe BV, putting people before profits – not the other way round.
At its root, the co-operative was started for social good. Former-DPM Goh Keng Swee once said:
Unless a life insurance co-operative fulfills a genuine social need, there is no reason to expect that it will be successful.
Similarly, former Minister and NTUC Sec-Gen Lim Swee Say said:
Our NTUC Co-operatives are not business enterprises seeking to maximise profits for the benefits of shareholders… To us, measurement of greatness is how much social impact we have created, and not how much profit we have generated.
Singaporeans are unhappy as they feel like they have been kept in the dark about the planned acquisition. At the heart of the matter, it feels like Income has forgotten what it was set out to do.
Said Prof Tommy Koh:
I feel sad that for many younger Singaporeans nothing is sacred and everything is for sale. We should remember the warning by our first foreign minister, S Rajaratnam. He warned us not to become a nation of people who know the price of everything but the value of nothing.
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