Mr Tan responded to NCMP Leong Mun Wai’s (PSP) question on whether the government is concentrating on the capital adequacy of Income and disregarding its social mission.
He listed out “proof points that in crisis and in peacetime”, NTUC has kept to its social mission.
“Since its founding in 1961, NTUC has protected and uplifted workers’ lives and livelihoods,” said Mr Tan.
“They have kept true to its mission, and since (the 1969 labour modernisation seminar) 55 years ago, NTUC has continued to care for workers and families,” he added.
He also pointed out that NTUC recently worked to raise the wages of low-wage workers through the progressive wage model, launched the Job Security Council during the COVID-19 pandemic and contributed more than S$300 million to various charity programmes over the years.
“NTUC has shown time and time and time and time again, since its founding, since NTUC Income’s establishment in 1970, that it has continued its social mission, it has continued to not just (talk about it), but fulfilled the social mission,” he said.
FINANCIALLY SUSTAINABLE
But social enterprises must be sustainable financially, said Mr Tan.
“If a social enterprise cannot sustain itself financially and government subsidy is needed to prop up the entity, then we will have to consider whether such a service ought to be provided by the government.
“Taxpayers must also be prepared to pay their share of taxes to fund the service,” he added.
NTUC Enterprise previously said a social enterprise model alone cannot shoulder growth in Singapore’s insurance environment, and that Income lost out on several key contracts to global and regional competitors.
It added that the circumstances in which Income was founded in 1970 are “vastly different” from the landscape today – a view Mr Tan echoed on Tuesday.
“It is now a very competitive market with many options available to Singaporeans. The government has also significantly strengthened our social support system,” he said, pointing to heavily subsidised public healthcare, as well as MediSave, MediShield Life, MediFund and CPF Life.
He noted that the premiums for several of Income’s schemes are not the cheapest in the market.
“The point is that Singaporeans, including lower income workers, are well served by our national insurance programs and our competitive and well-regulated insurance industry,” he said.
“All these provide Singaporeans with wider choices and better value in insurance services and products.”
INCOME EXPECTED TO FULFILL OBLIGATIONS
Mr Chee, who is also Transport Minister and Second Minister for Finance, said MAS also believes that a competitive market is the most effective way to “meet the insurance needs of Singaporeans” and facilitate access to affordable insurance options and good service over the longer term.
For existing policyholders, MAS expects Income to fulfil its obligations under the terms of its existing contracts, he said.
“Should the proposed deal be approved, there will be no change to the terms and conditions of existing insurance contracts,” Mr Chee said.
From: channelnewsasia
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