Shanmugam, who is also Coordinating Minister for National Security and Home Affairs Minister, said the government maintains a strict principle of not directing individual investment decisions by Temasek portfolio companies. Singapore Airlines, rather than state investor Temasek, is the shareholder in Air India and must decide whether additional funding is commercially justified, he said.
Air India is seeking about $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, after losses widened sharply in the financial year ended March 2026. Singapore Airlines owns 25.1 per cent of the carrier, while Tata Sons holds the remaining 74.9 per cent.
Singapore Airlines said last week that its board would “carefully consider” any request for additional capital, taking account of the group’s other funding requirements and Air India’s business strategy. The airline said it works with Tata Sons to support Air India’s transformation programme as a significant minority shareholder.
The funding question has prompted political scrutiny in Singapore because Temasek, which is owned by the Ministry of Finance, is the majority shareholder in Singapore Airlines. Workers’ Party MP Kenneth Tiong has questioned whether Temasek funds should ultimately be used to support Air India and has filed a question for the September 8 sitting of Parliament.
Shanmugam said shareholders and the public were entitled to expect rigorous assessment, accountability and transparency from Singapore Airlines. Shareholders could question management and directors at the company’s annual general meeting, but political views should not replace the professional judgment of its board, he said.
“Neither his views nor those of any minister or any other MP should substitute for the commercial judgment of SIA’s management and board of directors,” Shanmugam said, referring to Tiong.
He said Temasek is accountable to the government for its overall portfolio and long-term performance, but not for individual investments made by its portfolio companies. The government’s role, he added, was to ensure professional management and give companies sufficient independence to make properly considered decisions without political pressure.
Shanmugam warned that directing specific investments could weaken commercial discipline by allowing political considerations to shape corporate decisions. He said companies must be able to accept that some investments will produce gains and others losses, with performance judged across portfolios and over appropriate time horizons.
The debate follows Air India’s continuing financial and operational pressures during its overhaul under Tata ownership. The airline group posted a record loss of more than $2 billion for the last financial year, while its transformation has required extensive investment in aircraft, systems, customer service, maintenance and staffing.
Singapore Airlines became an Air India shareholder after the merger of Vistara with Air India was completed in November 2024. It received a 25.1 per cent stake in the enlarged carrier, combining its former Vistara interest with a cash investment agreed as part of the transaction.
Singapore Airlines subsequently injected further capital into Air India. By the end of March 2025, the total cost of its investment in the carrier stood at about S$2.1 billion, according to its disclosures.
The airline has repeatedly described its exposure to Air India as a long-term strategic investment, giving it direct participation in India’s large domestic aviation market and international traffic flows beyond its Singapore hub. It has also acknowledged that the turnaround will take time and that Air India faces both company-specific and wider industry challenges.
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