In legislature on Monday,  , Culture, Community and Youth Minister Edwin Tong said that “it would not be in the open interest for the purchase, in its present form, to deal”.
Mr Tong said in his , ministerial statement that the , Ministry of Culture, Community and Youth (MCCY ) is not satisfied that Income will be able to continue fulfilling its social mission after the proposed transaction.
No” clear binding measures” or structural safeguards are included in the agreement to enable Income’s social mission to be carried out.
According to Mr. Tong, the government is aware that the” corporate purpose” of the agreement was to increase Income’s ability to be financially responsible over the long run.
This is reiterated by Prime Minister Lawrence Wong. In a Facebook post, he wrote:” To be clear, the State supports having a powerful partner for Income, so as to improve its cash base and industry place”.
Mr. Wong added that the government was concerned about the , construction, and terms of this particular transaction, “especially in the light of the assurances that Income had provided to MCCY when the former was corporatized in 2022.”
As long as the issues raised are fully addressed, Mr. Tong said,” Whilst we will not let the proposed transaction to proceed, we are still open to any new arrangement that Income may wish to follow, whether with Allianz or any other lovers.”
Additionally, there will be changes to the Insurance Act that will provide a” clear legal base” for MCCY’s sights to be taken into account in programs involving carriers that are either co-op or linked to a co-op.