Singapore Minister of State for Trade and Industry Foo Cexiang has responded to Workers’ Party MP Kenneth Tiong’s concerns over Singapore Airlines’ investment in Air India, saying Parliament should not take on the role of a risk committee for individual companies.
Foo said MPs have the right to question how Singapore’s national reserves are safeguarded, but argued that Parliament does not have the operational data, expertise or mandate to determine the level of commercial risk that individual companies should take.
His comments followed a parliamentary exchange earlier this month in which Tiong questioned whether Singapore Airlines’ 25.1 per cent stake in Air India could affect the national carrier’s ability to provide essential air services in Singapore.
Tiong had also raised concerns about Air India’s financial performance and whether further funding from Temasek, SIA’s majority shareholder, might eventually be required.
Air India has reportedly sought about US$1.5 billion in fresh capital from its owners, Tata Sons and SIA, after recording a substantial annual loss. SIA has already recorded a significant impact on its earnings from its share of Air India’s results.
Foo said commercial decisions should remain the responsibility of SIA’s board and Temasek. He argued that subjecting such decisions to political direction could blur accountability and weaken corporate governance.
He also challenged the suggestion that SIA’s debt level indicated financial distress, noting that debt figures need to be considered alongside the company’s cash position, repayment schedule and overall financial strength.
Transport Minister Jeffrey Siow had similarly said in Parliament that SIA’s investment in Air India had not affected its ability to operate or provide essential services in Singapore. He said Air India’s financial obligations were separate from SIA’s and that any decision on further investment would be a matter for SIA’s board and management.
SIA acquired its 25.1 per cent stake in Air India after the merger between Air India and Vistara, its former joint venture with Tata Group, was completed in November 2024.
Tiong has argued that Parliament has a role in scrutinising risks involving Singapore’s national reserves because Temasek is SIA’s largest shareholder. He has said he supports SIA making its own commercial decisions but does not support further injections of Temasek funds to support the Air India investment.
The exchange highlights differing views over how Parliament should scrutinise investments involving companies within Temasek’s portfolio, while the government maintains that commercial decisions should remain with the companies and their boards.
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