Mr Pritam Singh (Aljunied): Thank you, Mdm Deputy Speaker. Just a few questions for the Minister. This pertains to the second thrust of his original reply, which was on the subject of Singaporeans’ access to affordable insurance products. Both my questions pertain to what has happened over the last 24 hours.
The first pertains to the statement by the NTUC Secretary-General Ng Chee Meng. He stated that, “Today, Income offers two low-cost schemes for union members – NTUC Gift and LUV term life insurance. Income has assured NTUC that it will keep premiums affordable for policyholders, especially those in the lower-income segments.”
Can I ask the Minister, with regard to MAS as regulator of insurance companies, has it queried NTUC on the basis of such a commitment that has been made in view of NTUC Enterprise’s projected minority shareholding – if the deal goes through? Relatedly, can I enquire whether MAS is looking at the market to provide more low-cost options for Singaporeans, especially underserved communities who require insurance protection?
The second question pertains to NTUC’s joint statement on 4 August and the response of the former Income CEO, Mr Tan, yesterday.
MAS, as regulator, would note that there is a point of difference between NTUC Enterprise’s alleged representation that its undertaking to hold on to the relevant shares was “not for an indefinite period”. Mr Tan, on the other hand, represents that this is not true and he invites MAS to ask both NTUC Enterprise and NTUC Income to produce all the material board minutes on the undertaking given by NTUC Enterprise. What is MAS’ position on this matter?
Mr Chee Hong Tat: Mdm Deputy Speaker, I thank the Leader of the Opposition for his two questions.
The first question on the insurance products that Income will continue to provide and also what the NTUC Secretary-General said in terms of those two specific low-cost products targeted at, especially, the lower-income workers, we are glad that NTUC has stepped forward to provide this assurance to look after the lower-wage workers. From a regulatory point of view, we do not go into the level of details in which the Secretary-General of NTUC has provided because he has gone beyond what is the regulatory requirement for him to give this assurance. He did it because he understands the concerns and he wants to give the assurance to the lower-wage workers that NTUC will continue to stand by them.
For MAS, my reply earlier to Ms Foo, to Mr Ang and others, and also in my main reply, that is what MAS will focus on. We will make sure that the terms and conditions of the existing policies will not change after the proposed deal has gone through. That is something that we will hold Income and Allianz to. That is something that will be part of our regulatory approval.
To Mr Singh’s second question, we have noted the two letters from Mr Tan Suee Chieh. We will do some further work to establish what the facts are before we assess what our position is and our next steps. I want to assure Mr Singh and the House that MAS takes a serious view of protecting the interests of our policyholders and other stakeholders. We will establish the facts and we will assess what our next steps should be.
Ministry of Finance
6 August 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=oral-answer-3610
Office of the Leader of the Opposition 