by GLORIA HARRY BEATTY
THE Takaful industry has potential to advance further, particularly in fortifying its role in boosting sustainable economic development and enhancing social justice in Malaysia.
Bank Negara Malaysia deputy governor Adnan Zaylani Mohamad Zahid (picture) said the local Takaful industry is well-positioned for significant growth in line with the strengthening economic momentum.
The takaful market has experienced significant growth, with contributions nearly tripling over the past decade, to date comprising 24.7% of the combined insurance and takaful market share.
He said the industry has now diversified with various players and solutions, aimed to fulfil the needs of households as well as businesses.
“In 2023, the total net contributions grew to RM17.3 billion, an increase of 6% compared to the previous year.
“While much has been accomplished, the takaful industry can grow more, particularly in elevating their role in achieving sustainable economic growth and enhancing social justice,” he said during Malaysia Takaful Association’s (MTA) launch of Hijrah27 on Friday.
Adnan explained that the local economy remains resilient, with growth expected to reach the higher end of the 4% to 5% forecast range for the full year 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 added.
He also noted that there remains a significant protection gap, especially for vulnerable segments and climate-related risks.
Adnan also called on the Takaful industry to address these needs through value-based intermediation, guided by core Shariah values that emphasise fairness, transparency, and inclusivity.
In addition, Adnan pointed out that the recent tabling of Budget 2025 included grant allocation to encourage integrated takaful solutions.
“Therefore, I call upon takaful operators to stand ready with effective strategies and work cohesively to reach any outcome and drive success.”