Keeping true to Income's purpose is key to a successful corporatisation

COME Feb 18, NTUC Income's 16,000 ordinary and institutional members will vote at an extraordinary general meeting on changing its legal character from that of a cooperative to a public company limited by shares.

In May 2013, Tan Suee Chieh, then NTUC Enterprise's Group CEO-designate, wrote to this newspaper stating that "Listing an NTUC social enterprise would change its fundamental character and objective of putting people before profits ... Instead, by listing, profits would take precedence. The organisation would have to work to maximise shareholder profits instead of maximising value for all customers". Tan was then responding to a reader's suggestion for NTUC Fairprice and Income to be corporatised or listed. Corporatisation may be a middle ground for Income between being a cooperative or a listed company.

Established in 1970 to provide affordable essential insurance coverage to Singapore workers, Income is the only insurance cooperative in Singapore. Cooperatives operate on the principles of self-help and mutual assistance to its members. They often have a social mission to benefit society. In 2020, Income had over 2 million customers, a total assets base valued at S$45.8 billion, and gross premiums of S$4.3 billion.