BNM: Malaysia's ASEAN Chairmanship To Boost Regional Takaful, Re-takaful Collaboration 

KUALA LUMPUR, Nov 8 (Bernama) -- Malaysia’s ASEAN chairmanship next year represents an opportunity to advance regional collaboration in critical sectors including in takaful and re-takaful, said Bank Negara Malaysia (BNM) deputy governor Adnan Zaylani Mohamad Zahid. 

He said Malaysia is poised to lead collaborative efforts and drive sustainable initiatives through deeper regional integration in takaful and re-takaful that benefits communities across Southeast Asia and supports long-term development of the region. 

“I implore the takaful industry to take this up and strategise to maximise the benefits of this unique opportunity,” he said at the launch of Malaysian Takaful Association’s (MTA) Hijrah27 here today.

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MTA has conceptualised Hijrah27, a strategic transformation plan that will transform the takaful landscape while advancing the nation’s leadership in shariah-compliant finance.

Hijrah27 addresses 19 key challenges spanning awareness, distribution, digital, product competitiveness, talent and environmental, social and governance, identified through engagements with industry stakeholders and decision-makers.

Following the success of the MTA reform plan 2022-2023, known as Islah23, Hijrah27 aligns with MTA’s mission with the visionary goals of the Financial Sector Blueprint 2026 and the industry’s value-based intermediation for takaful (VBIT) framework.

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At the same event, MTA celebrated the takaful industry’s 40th anniversary in Malaysia.

Meanwhile, Adnan Zaylani said that from a modest beginning, the takaful market has grown tremendously, with the size of takaful contribution nearly tripling over the past decade and has now comprised 24.7 per cent of our share of insurance and takaful market.

He said the industry has diversified with players and solutions evolving to meet the very needs of households and businesses.

“In 2023, the total net contributions grew to RM17.3 billion, increased by six per cent compared to the previous year.

“While much has been accomplished, the takaful industry can do more, particularly in elevating its role in achieving sustainable economic growth and enhancing social justice,” he added.  

Despite the global headwinds and uncertainties, the Malaysian economy remains quite resilient with an encouraging rise in economic momentum.

Following a strong first half of 2024, the full-year growth now is anticipated to be around the upper end of the forecast range of four to five per cent, with continued performance in 2025.

“With these growth prospects and ongoing government structural reforms, the subsidy rationalisation and enhancements in social protection, significant opportunities are there for the takaful industry to grow and deliver a meaningful change,” he said. 

-- BERNAMA