Raj Joshua Thomas on Insurance (Amendment) Bill

In intervening to stop the Income-Allianz deal, the Government has chosen to do the right thing despite it being inconvenient and potentially politically inexpedient, said NMP Raj Joshua Thomas. Referencing the ministerial statement on Oct 14 by Culture, Community and Youth Minister Edwin Tong, along with responses given by Minister Chee Hong Tat and Minister of State Alvin Tan to parliamentary questions in August, he drew the conclusion that rather than being a communication breakdown as suggested by some, the case instead provided evidence of information-sharing that has now enabled the Government to make the correct decision. Mr Thomas said he had “a nagging feeling that someone was perhaps trying to pull the wool over the Government’s eyes, and that it was lucky that this inconsistency was caught out and this deal blocked”. He asked if the Government has ascertained, or will be taking steps to ascertain, how it is that Income could negotiate, agree and attempt to execute a deal with Allianz that included initiatives that would have resulted in share capital reduction - the opposite of its representations to MCCY at the time of corporatisation. To that end, he set out some questions that the ministries should ask Income, with its responses made public. He added - given that Income’s move to corporatise was premised on finding it hard to compete and fulfil its social mission, it is important that it now be made to explain how it is going to leverage its corporate structure to do so, as the Allianz deal may be off. Finally, Mr Thomas sought clarity on whether the Income-Allianz deal has in fact been halted, or whether it would be subject to the minister’s approval after passing of the Insurance (Amendment) Bill - and if so, would there be issues of retroactive or retrospective application of the law. He spoke in Parliament on Wednesday (Oct 16).