Malaysia’s Economic Recovery and Islamic Finance Ecosystem Boost Its Continuous Takaful Growth: Fitch Ratings

Fitch Ratings (Fitch) expects stable growth of the Takaful Industry in Malaysia to continue due to the conducive environment created by the support of the Government of Malaysia and the Islamic finance ecosystem, as well as economic growth estimated at 6.7% for 2021.

Why it matters?

The Takaful industry in Malaysia managed to remain strong even during COVID-19 in 2020, and accounted for 38% out of domestic life insurance market, with General Takaful accounting for 16% of the entire general insurance market in 2020. Takaful demand can come from Islamic banks, Shariah-compliant corporates, Islamic fund managers, other Halal industries that require Takaful products, such as Bancassurance and Sukuk issuances.

Details