The right outcome for Income? Not a merger with Allianz

The insurance company can continue to be a successful social enterprise that helps Singaporeans.

- Tommy Koh and Tan Suee Chieh

The story of NTUC Income began more than 50 years ago and we do not believe it should end as a merger with German insurer Allianz. NTUC Income is a social enterprise and should continue to perform that role. This is an opportunity to draw upon Income's enduring mission to tackle the evolving social challenges of a new Singapore, meeting the needs of our time.

In 1970, the National Trades Union Congress (NTUC), under the leadership of C.V. Devan Nair, established NTUC Income as a cooperative under it. Mr Nair had spoken of the need for NTUC to become a social institution, in order to serve the workers in various ways. The then Finance Minister, Dr Goh Keng Swee, supported this mission. He urged NTUC to set up social enterprises, in areas such as life insurance and essential consumer goods, to meet the needs of the working population.

In accordance with Mr Nair's vision and Dr Goh's suggestion, NTUC set up Income in 1970 and FairPrice in 1973. The two cooperatives have been very successful. They have fulfilled their social missions and are financially strong. They have lived up to the mantra, to do well in order to do good.

FROM COOPERATIVE TO COMPANY

In 2022, NTUC Income proposed to change its legal character, from a cooperative to a company. The reasons given for this change were to "achieve operational flexibility and gain access to strategic growth options". The proposal was approved by an extraordinary general meeting (EGM).

The success of Income can be seen from the fact that in 2022, it had a surplus of $2 billion.

Under the law governing cooperatives, when a cooperative is dissolved, the surplus would be paid to the Co-operative Societies Liquidation Account. The money would be used to benefit the cooperative movement.