Singapore Minister Defends SIA’s Stake in Air India

Singapore’s transport minister Jeffrey Siow has defended Singapore Airlines’ (SIA) investment in Air India, stressing that the flag carrier must expand overseas due to limits on passenger growth to and from Singapore. 

Speaking in parliament, Siow explained that SIA is a listed company funding investments from its own balance sheet without seeking additional capital from shareholders.

SIA Statement Confirms Internal Funding Strategy

SIA, majority‑owned by Temasek, holds a 25.1% stake in Air India. The investment has weighed on earnings as the Indian carrier undergoes a multibillion‑dollar turnaround expected to take up to a decade. 

Reuters recently reported Air India is seeking about USD 1.5 billion in fresh equity from Tata Sons and SIA. Siow noted that overseas investments may take time to yield returns, but current assessments show SIA’s ability to serve Singaporeans remains unaffected.

SIA confirmed in a statement that its India investments are funded internally, subject to board approval and capital discipline. It described Air India’s transformation as a complex, multi‑year programme aligned with its multi‑hub strategy. 

Opposition lawmaker Kenneth Tiong had earlier urged Temasek’s funds not be used to support Air India. Senior Minister K Shanmugam also condemned racist remarks online linked to the debate, stressing Temasek expects responsible investment decisions.