Shanmugam, who can also be Coordinating Minister for Nationwide Safety and Residence Affairs Minister, stated the federal government maintains a strict precept of not directing particular person funding selections by Temasek portfolio firms. Singapore Airways, somewhat than state investor Temasek, is the shareholder in Air India and should resolve whether or not further funding is commercially justified, he stated.
Air India is in search of about $1.5 billion in recent fairness from its house owners, Tata Sons and Singapore Airways, after losses widened sharply within the monetary 12 months ended March 2026. Singapore Airways owns 25.1 per cent of the service, whereas Tata Sons holds the remaining 74.9 per cent.
Singapore Airways stated final week that its board would “fastidiously take into account” any request for extra capital, taking account of the group’s different funding necessities and Air India’s enterprise technique. The airline stated it really works with Tata Sons to assist Air India’s transformation programme as a big minority shareholder.
The funding query has prompted political scrutiny in Singapore as a result of Temasek, which is owned by the Ministry of Finance, is almost all shareholder in Singapore Airways. Staff’ Get together MP Kenneth Tiong has questioned whether or not Temasek funds ought to in the end be used to assist Air India and has filed a query for the September 8 sitting of Parliament.
Shanmugam stated shareholders and the general public have been entitled to count on rigorous evaluation, accountability and transparency from Singapore Airways. Shareholders may query administration and administrators on the firm’s annual common assembly, however political opinions shouldn’t change the skilled judgment of its board, he stated.
“Neither his views nor these of any minister or every other MP ought to substitute for the industrial judgment of SIA’s administration and board of administrators,” Shanmugam stated, referring to Tiong.
He stated Temasek is accountable to the federal government for its general portfolio and long-term efficiency, however not for particular person investments made by its portfolio firms. The federal government’s position, he added, was to make sure skilled administration and provides firms ample independence to make correctly thought-about selections with out political stress.
Shanmugam warned that directing particular investments may weaken industrial self-discipline by permitting political issues to form company selections. He stated firms should be capable of settle for that some investments will produce positive factors and others losses, with efficiency judged throughout portfolios and over acceptable time horizons.
The talk follows Air India’s persevering with monetary and operational pressures throughout its overhaul underneath Tata possession. The airline group posted a file lack of greater than $2 billion for the final monetary 12 months, whereas its transformation has required in depth funding in plane, programs, customer support, upkeep and staffing.
Singapore Airways turned an Air India shareholder after the merger of Vistara with Air India was accomplished in November 2024. It acquired a 25.1 per cent stake within the enlarged service, combining its former Vistara curiosity with a money funding agreed as a part of the transaction.
Singapore Airways subsequently injected additional capital into Air India. By the tip of March 2025, the entire value of its funding within the service stood at about S$2.1 billion, in accordance with its disclosures.
The airline has repeatedly described its publicity to Air India as a long-term strategic funding, giving it direct participation in India’s giant home aviation market and worldwide site visitors flows past its Singapore hub. It has additionally acknowledged that the turnaround will take time and that Air India faces each company-specific and wider business challenges.
