Cancelled Income-Allianz deal sparks cautious celebration

Netizens are cautiously optimistic after Minister for Culture, Community and Youth Edwin Tong announced that the NTUC Income-Allianz deal would be suspended for now.

Back in July, German insurer Allianz offered to buy a controlling stake of at least 51% in Income in a deal valued at $2.2 billion.

The deal prompted fierce public criticism that a private, foreign firm might not be aligned with Income’s social obligations - to provide affordable insurance to low-income Singaporeans.

MCCY received new information about the deal in August, and reviewed the deal again.

MCCY grew concerned over Allianz’s plan for Income to reduce its existing share capital, whether this could undermine Income’s ability to fulfill its social mission.

Thus, MCCY decided to block the deal in its current form to protect public interests.

However, the government is open to future new arrangements, if the concerns are addressed.

Allianz has responded to say that it will consider revising the current structure.

Netizens have praised the decision as a good move, and highlighted the importance of listening to public feedback.

However, some called out the MPs and NTUC leaders who defended the original deal.

At the same time, many are hesitant to celebrate, saying that the deal could resume in a different form.