As Singapore prepares for its general election on May 3, a failed takeover bid by global insurance giant Allianz has become a focal point in the political debate, with politicians using the issue to score points in key constituencies.
Around 2.75 million Singaporeans are eligible to vote in the upcoming election, where they will choose a prime minister to lead the nation for the next five years. Among the many topics being discussed during the short nine-day campaign, the 2023 Allianz- Income Insurance deal has resurfaced as a contentious issue.
In July 2023, Allianz offered $1.7 billion to acquire Income Insurance, a move that stirred concern among Singaporeans. Many feared the deal could shift the insurer away from its social mission of providing affordable insurance to the public. Despite initial support from officials, the deal was blocked in October after increasing public scrutiny. Allianz ultimately abandoned its takeover bid in December.
Now, the issue has become a political tool for both the ruling People’s Action Party (PAP) and the opposition Workers’ Party (WP) as they face off in a highly competitive election. The debate centers around why Singaporean authorities initially appeared to approve the deal before reversing their position, and who failed to raise concerns during the process.
Ng Chee Meng, chief of the National Trades Union Congress (NTUC), defended the labor movement’s initial stance at a rally on Sunday. He stated that the NTUC believed the takeover would have strengthened Income Insurance. Ng, a PAP candidate, responded to criticism that the union should have objected to the deal, emphasizing that Income Insurance remains largely controlled by the NTUC, which holds 72.8% of the insurer’s shares.
“Sometimes I’m sorry that it is not good enough,” Ng said, vowing that the ruling party would strive to do better.
In contrast, former Prime Minister Lee Hsien Loong accused the Workers’ Party of hypocrisy, suggesting that the opposition would have supported the deal had it been in power. He pointed out that only one opposition MP had questioned the takeover, and the Workers’ Party had abstained from a vote to block the merger.
Pritam Singh, leader of the Workers’ Party, responded by criticizing the PAP’s labor MPs for failing to question the deal at the time. WP member Harpreet Singh went further, calling on Deputy Prime Minister Gan Kim Yong to explain his involvement in the blocked deal and respond to an open letter from former Income Insurance CEO Tan Suee Chieh, which raised concerns about regulatory oversight and accountability.
In a Tuesday afternoon exchange, Gan questioned why the opposition had not raised concerns earlier, but he also clarified the government’s change of heart. “We wanted to support the deal because it would have helped Income, but when more details emerged, we decided it was no longer in Singapore’s best interest,” Gan explained.
This election will be a significant test for Prime Minister Lawrence Wong, who assumed leadership of the PAP last year. Despite the controversies, the PAP is expected to retain power in the May 3 election, continuing its long-standing rule since Singapore’s independence in 1965.
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