Minister Shanmugam clarifies the role of feedback and internal deliberations in the cancellation of the deal.
The decision to amend the Insurance Act and prevent the Allianz-Income deal from going through was made by Prime Minister Lawrence Wong and the Cabinet, Law and Home Affairs Minister K. Shanmugam clarified on November 6. This followed the Government’s announcement in October that the deal between German insurer Allianz and Income Insurance was being halted due to concerns about its structure and the impact on the social mission of the local insurer.
Shanmugam responded to claims made by former NTUC Income CEO Tan Suee Chieh, who suggested he played a pivotal role in the internal deliberations leading to the deal’s cancellation. While Tan had engaged with Shanmugam over several months, the minister stated that he was primarily a conduit for forwarding Tan’s views to relevant ministers and that the Government’s decision differed from Tan’s perspectives, even though the deal was ultimately stopped.
Shanmugam also addressed two common misconceptions: first, that the Government only changed its stance after public feedback, and second, that the Government was not coordinated in its handling of the deal. He clarified that the Ministry of Culture, Community and Youth (MCCY) only became aware of the deal when it was publicly announced in July. Additionally, he emphasized that the deal had not been approved in any parliamentary session, and that coordination across agencies was essential but not expected to involve full disclosure at every stage.
The Government’s decision was made in line with the law and due process, ensuring Singapore’s interests were protected, even if it required hard decisions. Shanmugam affirmed that the system was functioning properly, with accountability and careful consideration of the facts.
