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Aug 7, 2011Ex-Income chief asked to quit co-op
By Robin Chan and Wong Kim Hoh, Senior Writer
Presidential hopeful and former NTUC Income chief Tan Kin Lian has revealed that he was asked to leave the insurance cooperative in 2006.In an interview with The Sunday Times, he disclosed the reasons for his sudden departure from the company he helmed for nearly 30 years. 'When I ran NTUC, I ran it quite differently from what my board wanted. The board wanted NTUC to be more commercial. I wanted NTUC to be more cooperative. So Istruggled with my board over the years,' said Mr Tan. His remarks prompted an immediate response from NTUC Income, which said that,as a cooperative, it is today as committed as ever to its social purpose.
Rather, Mr Tan's departure was linked to the need for NTUC Income to 'professionalise' itself and was necessary in order for it to 'move to the next level'. 'We are surprised by the comments from Mr Tan Kin Lian on his differences with theboard on the direction of NTUC Income,' the cooperative added. 'Like any other board, the NTUC Income board comprised directors with varying backgrounds and professional expertise who have their own styles and generated diverse opinions and healthy debate. But collectively, their key job is to ensure the continued progress and growth of the cooperative.' News that Mr Tan was leaving NTUC generated a lot of speculation when it first broke in September 2006. At that time, he said he was going into early retirement. But since he stepped forward as a presidential candidate two months ago, talk has surfaced online that his departure from the insurance cooperative was not entirely voluntary. The 63-year-old was unfazed when asked to address the rumour. 'I was not a yes man to the board,' he said, adding that he would often speak upagainst board decisions which he felt were not right.He said, for instance, that he fought suggestions that NTUC Income be privatised.' So this is true, yes. One day they decided, 'Okay, we'll just ask Tan Kin Lian to go,'' he said. 'Thirty years is just nice. And I think they had the right to do so,' he quipped, but not before saying that he had considered leaving the company a lot earlier.
In its reply to The Sunday Times, the insurance cooperative said of Mr Tan's departure:
'For NTUC Income to move forward, there was a strong need to professionalise the cooperative and take it to the next level. This was to ensure that NTUC Income continued to be sustainable and execute plans thatmade long-term business sense.
'Today, NTUC Income is more committed to its social purpose than ever, making adifference in the lives of Singaporeans.' Mr Tan joined Income as a 29-year-old general manager in 1977. Over the years, he played a major role in turning the small cooperative, which catered mainly to union members, into one of Singapore's most prominent insurance players. When he left, Income had a 15 per cent market share in life, general and health insurance, and more than 1.8 million policy holders. During his tenure, he introduced many new - and sometimes contentious - initiatives. NTUC Income, for instance, was the first insurer to publicly disclose the returns earned by specific life insurance policies in 2006.
However, he also earned criticism for pushing other non-insurance products such as Logic9, which is similar to the numbers puzzle sudoku. He also aggressively pushed direct selling, and tried to cut out the role ofintermediaries. This left in its wake some disgruntled employees.
=> Then what about the FAP's opening of the two casinos and wrecking lives and families?
He was famously outspoken, and his colourful and controversial personality won him both fans and detractors.Not surprisingly, critics have emerged online in the run-up to the presidentialelection, questioning his departure from NTUC and his role in investments which saw investors lose money.
=> What about the FAP Traitors breaking Sporeans' rice bowls? And acting blur when Sporeans lost money to the Lehman conmen?
One of these was the 40 per cent stake NTUC Income took in an overseas resort chain called Club Nuansa in June 1997. The resort was pitched to policyholders as a benefit, with a week's free use ofresort facilities each year over a 30-year membership period. NTUC Incomepolicyholders paid a $16,000 discounted membership fee, and would be returned the entrance fee after the 30 years.
It was a joint venture with Alliance Technology and Development (ATD), an eye-careproducts supplier that was diversifying into theme parks and resorts, but was already showing signs of financial difficulty at the time. Its most prominent venture was the Fort Canning Country Club, whose former president was the late Dr Ong Chit Chung, a former politician. At the time of its launch, Club Nuansa promised to pump in an initial $50 million and eventually up to $500 million to expand the resort chain to 30 destinations, including Australia.A highlight was a $22 million kampung-style chalet resort on Pulau Ubin called Ubin Lagoon Resort. But ATD sank further and further into debt, dragging Club Nuansa along with it. It is believed about 400 members had signed up by the time Club Nuansa's financial difficulties began to make headlines. In June 2000, its members discussed at a meeting the possibility of the club eitherbeing wound up or being taken over by NTUC Income, according to ex-club member G.L. Ong, a freelance marketer.
In March 2002, ATD finally collapsed under a $115 million debt mountain, and was placed under judicial management.
Three years later, the club ceased operations and was placed into liquidation.This angered some members like Ms Ong, who got back only a quarter of the feespaid.
=> Ah, there the 154th go again. Why did not question that thousands of Sporeans are kena conned by the Familee courtesy of GeeAyeSee and Temasick, etc and got back nothing?
'There must be accountability,' she said. 'Time shares then had a bad name, but I had gone into the club based on the trust I had in NTUC Income and Tan Kin Lian, and there was also aguaranteed payback.'When asked about this, Mr Tan said his then marketing manager believed itwas a good idea, but the investment 'turned out to be bad in other ways'.'Some of these things are just bad luck.'
He also said investments above a certain size were made with the approval of the board.'We have to invest the money. It's similar to Temasek Holdings investing in ShinCorp. You've got good investments and bad investments.'He added that people should judge based on the overall investment performance ofNTUC Income. 'If you bring up the bad, what about the good?'As an example, he said NTUC Income paid about $20 million for its building in BrasBasah in 1985.'It's worth more than $100 million now, maybe even $200 million.'NTUC Income also issued a response to questions on Club Nuansa.
'As with any investment portfolio of an insurance company, some segments will dowell and others may not. Over a long term, NTUC Income continues to grow itsinvestment returns.'
By Robin Chan and Wong Kim Hoh, Senior Writer
Presidential hopeful and former NTUC Income chief Tan Kin Lian has revealed that he was asked to leave the insurance cooperative in 2006.In an interview with The Sunday Times, he disclosed the reasons for his sudden departure from the company he helmed for nearly 30 years. 'When I ran NTUC, I ran it quite differently from what my board wanted. The board wanted NTUC to be more commercial. I wanted NTUC to be more cooperative. So Istruggled with my board over the years,' said Mr Tan. His remarks prompted an immediate response from NTUC Income, which said that,as a cooperative, it is today as committed as ever to its social purpose.
Rather, Mr Tan's departure was linked to the need for NTUC Income to 'professionalise' itself and was necessary in order for it to 'move to the next level'. 'We are surprised by the comments from Mr Tan Kin Lian on his differences with theboard on the direction of NTUC Income,' the cooperative added. 'Like any other board, the NTUC Income board comprised directors with varying backgrounds and professional expertise who have their own styles and generated diverse opinions and healthy debate. But collectively, their key job is to ensure the continued progress and growth of the cooperative.' News that Mr Tan was leaving NTUC generated a lot of speculation when it first broke in September 2006. At that time, he said he was going into early retirement. But since he stepped forward as a presidential candidate two months ago, talk has surfaced online that his departure from the insurance cooperative was not entirely voluntary. The 63-year-old was unfazed when asked to address the rumour. 'I was not a yes man to the board,' he said, adding that he would often speak upagainst board decisions which he felt were not right.He said, for instance, that he fought suggestions that NTUC Income be privatised.' So this is true, yes. One day they decided, 'Okay, we'll just ask Tan Kin Lian to go,'' he said. 'Thirty years is just nice. And I think they had the right to do so,' he quipped, but not before saying that he had considered leaving the company a lot earlier.
In its reply to The Sunday Times, the insurance cooperative said of Mr Tan's departure:
'For NTUC Income to move forward, there was a strong need to professionalise the cooperative and take it to the next level. This was to ensure that NTUC Income continued to be sustainable and execute plans thatmade long-term business sense.
'Today, NTUC Income is more committed to its social purpose than ever, making adifference in the lives of Singaporeans.' Mr Tan joined Income as a 29-year-old general manager in 1977. Over the years, he played a major role in turning the small cooperative, which catered mainly to union members, into one of Singapore's most prominent insurance players. When he left, Income had a 15 per cent market share in life, general and health insurance, and more than 1.8 million policy holders. During his tenure, he introduced many new - and sometimes contentious - initiatives. NTUC Income, for instance, was the first insurer to publicly disclose the returns earned by specific life insurance policies in 2006.
However, he also earned criticism for pushing other non-insurance products such as Logic9, which is similar to the numbers puzzle sudoku. He also aggressively pushed direct selling, and tried to cut out the role ofintermediaries. This left in its wake some disgruntled employees.
=> Then what about the FAP's opening of the two casinos and wrecking lives and families?
He was famously outspoken, and his colourful and controversial personality won him both fans and detractors.Not surprisingly, critics have emerged online in the run-up to the presidentialelection, questioning his departure from NTUC and his role in investments which saw investors lose money.
=> What about the FAP Traitors breaking Sporeans' rice bowls? And acting blur when Sporeans lost money to the Lehman conmen?
One of these was the 40 per cent stake NTUC Income took in an overseas resort chain called Club Nuansa in June 1997. The resort was pitched to policyholders as a benefit, with a week's free use ofresort facilities each year over a 30-year membership period. NTUC Incomepolicyholders paid a $16,000 discounted membership fee, and would be returned the entrance fee after the 30 years.
It was a joint venture with Alliance Technology and Development (ATD), an eye-careproducts supplier that was diversifying into theme parks and resorts, but was already showing signs of financial difficulty at the time. Its most prominent venture was the Fort Canning Country Club, whose former president was the late Dr Ong Chit Chung, a former politician. At the time of its launch, Club Nuansa promised to pump in an initial $50 million and eventually up to $500 million to expand the resort chain to 30 destinations, including Australia.A highlight was a $22 million kampung-style chalet resort on Pulau Ubin called Ubin Lagoon Resort. But ATD sank further and further into debt, dragging Club Nuansa along with it. It is believed about 400 members had signed up by the time Club Nuansa's financial difficulties began to make headlines. In June 2000, its members discussed at a meeting the possibility of the club eitherbeing wound up or being taken over by NTUC Income, according to ex-club member G.L. Ong, a freelance marketer.
In March 2002, ATD finally collapsed under a $115 million debt mountain, and was placed under judicial management.
Three years later, the club ceased operations and was placed into liquidation.This angered some members like Ms Ong, who got back only a quarter of the feespaid.
=> Ah, there the 154th go again. Why did not question that thousands of Sporeans are kena conned by the Familee courtesy of GeeAyeSee and Temasick, etc and got back nothing?
'There must be accountability,' she said. 'Time shares then had a bad name, but I had gone into the club based on the trust I had in NTUC Income and Tan Kin Lian, and there was also aguaranteed payback.'When asked about this, Mr Tan said his then marketing manager believed itwas a good idea, but the investment 'turned out to be bad in other ways'.'Some of these things are just bad luck.'
He also said investments above a certain size were made with the approval of the board.'We have to invest the money. It's similar to Temasek Holdings investing in ShinCorp. You've got good investments and bad investments.'He added that people should judge based on the overall investment performance ofNTUC Income. 'If you bring up the bad, what about the good?'As an example, he said NTUC Income paid about $20 million for its building in BrasBasah in 1985.'It's worth more than $100 million now, maybe even $200 million.'NTUC Income also issued a response to questions on Club Nuansa.
'As with any investment portfolio of an insurance company, some segments will dowell and others may not. Over a long term, NTUC Income continues to grow itsinvestment returns.'
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