PAP MP Foo Ceixang on Kenneth Tiong's questions on SIA: MPs should create greater clarity, not confusion

Tanjong Pagar MP Foo Ceixang responded to Workers' Party MP Kenneth Tiong's questions about Singapore Airlines (SIA) finances and Parliament's role in overseeing it. Tiong had called for questions after Reuters reported Air India's request for additional US$1.5 billion (S$1.9 billion) amid large losses. Foo acknowledged the need for MPs to pose challenging questions but emphasized that their goal should be to create greater clarity, not confusion; to enhance outcomes, not worsen them.

This came after a recent exchange in Parliament between Tiong and Transport Minister Jeffrey Siow. Foo's first point was that net debt does not equate to financial distress, as SIA has S$10.5 billion in cash and S$10.7 billion in debt. He argued that these figures should not be viewed in isolation but rather in the context of SIA's ability to pay its debt, noting that a significant portion of the debt is long-term.

Foo contended that Tiong's narrative overstated the situation, though he did not explicitly state SIA was in immediate trouble. He also objected to Tiong's assertion that "Parliament is the risk function for the reserves and SIA's Board is the investment team," arguing that "Parliament cannot be SIA's risk committee." Foo maintained that SIA already has a Board of Directors to oversee management and risk, and involving Parliament in deciding SIA's commercial risks would shift political decision-making beyond just SIA and other Temasek-linked companies like DBS and Singtel.

Tiong had stated support for SIA's autonomy but opposed further cash infusions from Temasek if the public questions the decision. He also noted that Singaporeans are the carrier's "stakeholder of last resort" and that they need to be informed about the limits of their support.