Liang Eng Hwa on Insurance (Amendment) Bill

The revelation of a substantial capital reduction exercise in the proposed Income-Allianz transaction was a “deal-breaker” as the move clearly ran counter to the basis on which Income Insurance was granted exemption to carry S$2 billion in surplus capital over to its corporate entity rather than transfer it to benefit the wider co-op sector, said MP Liang Eng Hwa. Income had been exempted on the basis that it would build up its capital resources and continue its social mission. Speaking in Parliament on Wednesday (Oct 16), Mr Liang welcomed the “open and transparent manner” in which the Government explained what had happened and why it was stopping the deal. He argued that the Government should require NTUC Enterprise to remain as the majority shareholder of Income for a prescribed number of years so that it can continue to steward Income to carry out its social mission. At the same time, he hoped the Government and NTUC could refresh a roadmap on the roles of major social co-operatives. Mr Liang raised another concern - whether the rejection of the Allianz transaction would have any impact on Singapore’s reputation as a global centre that welcomes international investments. He called on the Government to reaffirm this long-standing policy, noting that it has never been averse to foreign investors acquiring Singapore companies, which is “part and parcel” of maximising the value of enterprises.