The Singaporean government has staunchly defended its investment in Air India, two weeks after the Indian carrier sought $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines (SIA). This defense comes amidst strong objections from the opposition in Singapore regarding the potential use of state investor Temasek's funds to support Air India.
Temasek, Singapore's state-owned investment company, holds a 25.1% stake in Air India. Lawmaker Kenneth Tiong of Singapore's opposition Workers' Party raised concerns in parliament, urging against using Temasek's funds to prop up the Indian airline. Tiong clarified that his questions pertained purely to commercial matters and explicitly rejected any association with racism or xenophobia.
Transport Minister Jeffrey Siow addressed parliament, asserting that building globally competitive companies often entails navigating challenging markets and enduring periods of turbulence. "We cannot have it both ways. We cannot tell our companies to go out and compete, and then treat every tough year abroad as proof that they should stay home," Siow stated. He emphasized that overseas investments do not always yield immediate returns and that the decision regarding Air India's value rests with Singapore Airlines and its shareholders. Siow also clarified that Air India's losses do not automatically become SIA's liabilities, nor does the funding request obligate SIA to provide capital.
The debate surrounding the investment has unfortunately been marred by online abuse. Singaporean Prime Minister Lawrence Wong condemned the anti-Indian sentiment that surfaced online. Senior Minister K Shanmugam called for police investigation into racist comments related to the investment, noting that Temasek's CEO and senior management had been targeted based on their ethnicity. Shanmugam highlighted that the news of the funding request "has given rise to a whole series of anti-Indian, racist ranting online.”