Income-Allianz deal: MPs raise concerns about government blocking foreign investment deals, impact on reputation
In his closing speech, Mr Chee said the law was not being applied retrospectively as there was “no formal application yet by Allianz to obtain effective control and become a substantial shareholder of Income”.
Instead, the terms of the proposed transaction clearly stated it was subject to regulatory approval by MAS, he said.
The Bill is an exception due to its urgency because the deal with Allianz is under consideration by shareholders, Mr Chee added.
He said that it is tightly scoped to co-operative insurers or those with a co-operative as a substantial shareholder.
“This recognises that insurance co-ops are a special category of insurers with a social mission,” he said.
SHARING OF INFORMATION IN GOVERNMENT
The coordination and sharing of information between government bodies was also a concern raised by MPs on Wednesday.
MP Jamus Lim (WP-Sengkang) said it was “troubling” that there was no coordinated discussion between the two regulators, MAS and MCCY, about the proposed deal.
He questioned if agencies within Singapore’s civil service have become isolated to the extent that no joint working group was set up to exchange information for such a prominent transaction.
He said it appears that there were “multiple breakdowns of communication” between different government agencies.
This case may be a sign that Singapore needs to examine how government departments exchange relevant data and information, said Assoc Prof Lim.
NMP Mark Lee also said Monday’s ministerial statement highlighted a delay in MCCY’s involvement.
“Perhaps earlier involvement of relevant agencies could have flagged potential deal breakers sooner, enabling businesses to address concerns early and avoid public intervention,” said Mr Lee.
In response, Mr Chee said there needs to be a balance between sharing information with the government and keeping commercial details confidential.
Information given to MAS by financial institutions is confidential and normally would not be shared with government agencies.
“We recognise that companies submit such information for a specific regulatory purpose and not to enable general government evaluation,” said Mr Chee.
