Thursday 14 Nov 2024
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KUALA LUMPUR (Nov 8): The Malaysian Takaful Association (MTA) launched on Friday, a takaful framework dubbed as Hijrah27, aimed at broadening the public understanding of the industry and expanding its reach to underserved segments, including micro, small, and medium enterprises (MSMEs).

Hijrah27 also seeks to enhance professionalism among takaful representatives and promote initiatives aligned with environmental, social, and governance (ESG) aspects, the MTA said in a statement, following the inauguration of the comprehensive framework on Friday.

“The inauguration signals a unified commitment to industry-wide growth and evolution for the framework that outlines the industry’s roadmap for sustainable growth, broader accessibility, innovation and impactful societal values,” the statement read.

Hijrah27 will address key challenges in the takaful industry, spanning from awareness, to distribution, digitalisation, product competitiveness, talent and ESG, identified through engagements with industry stakeholders and decision-makers, the association noted.

The MTA added that the new framework anchors the next phase of takaful industry growth on eight strategic thrusts, including digital innovation and strengthening regulatory governance, building on four decades of the industry’s progress.

The strategic thrusts of Hijrah27 are underpinned by essential success factors, including fostering an empowering organisational culture, ensuring cohesion and discipline across the sector, and enhancing cross-industry collaboration.

MTA chairman Elmie Aman Najas said during the framework launch here that the takaful industry has seen “tremendous growth”, with assets more than doubling in just 10 years, rising from RM23 billion in 2014 to RM55.6 billion today.

“These investments strengthen shariah-compliant capital markets and channel funds into critical sectors like technology, infrastructure and healthcare, fuelling economic progress and generating jobs across Malaysia,” Elmie added.

Over the same period, the number of registered takaful agents rose 37% to 108,158, from 78,979, with greater industry participation and collective efforts. This was reflected by a higher penetration rate, reaching 20% from 15% in 2015, coming from an enlarged base of family takaful certificates at 6.6 million, up 44% from 4.6 million, with annualised contribution exceeding RM8.97 billion.

“Looking ahead, we want to make takaful more relevant, accessible, and impactful. We envision a future where takaful protection is inclusive and responsive to the needs of a diverse Malaysian population, catalysing and maintaining the growth momentum of takaful,” Elmie noted.

The organisation added that it will continue to emphasise collaborations, comprehensive awareness, and product and service innovation, to widen protection for the unserved and underserved rakyat, so that every Malaysian has a social safety net.

The Hijrah27 roadmap builds on the previous MTA Reform Plan 2022-2023, known as ISLAH23, aligning the industry with the visionary objectives set forth in the Financial Sector Blueprint 2026 and the Value-Based Intermediation for Takaful (VBIT) framework.

The launch was attended by Bank Negara Malaysia (BNM) deputy governor Adnan Zaylani Mohamad Zahid, as well as industry luminaries from the Malaysia International Islamic Finance Centre, among others.

“Next year will be a significant year for Malaysia to actively advance regionally across Southeast Asia (as a chairman of Asean) in critical sectors, including takaful and retakaful. As a pioneer in takaful, Malaysia is well positioned to lead collaborative efforts and drive sustainable initiatives through deeper regional cooperation that benefit communities and support the long-term development of the region,” Adnan Zaylani said.

Edited ByTan Choe Choe
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