SINGAPORE: Former NTUC Income chief Tan Kin Lian has expressed disappointment over Allianz’s plans to acquire a majority stake in Income Insurance, after the foreign insurance conglomerate made a S$2.2 billion offer for a 51% stake in the company that started out as a social enterprise dedicated to serving all Singaporeans.
The co-operative model of Income has its roots in the Modernisation Seminar of 1969. At this seminar, delegates from NTUC affiliated unions addressed the challenges faced by Singaporean workers, primarily blue-collar and low-income earners. Inspired by the vision of NTUC founding leader Devan Nair and supported by then Finance Minister Goh Keng Swee, NTUC co-operatives or Social Enterprises, including Income, were created to serve the needs of the working population.
Pointing to Income’s promise that it would continue catering to underserved customer segments when it was corporatised in 2022, critics have questioned whether the acquisition by a foreign entity will impact the company’s foundational values. “This is sad. But it reflects what has been happening in Singapore for the past three decades. We are following the bad practices of America. America is now in decay. Singapore may follow.”