New Takaful Licenses Will Help Industry Growth

The Life Insurance Association of Malaysia (LIAM) said the issuance of two new takaful licenses will further increase takaful penetration rate in Malaysia which is currently at a very low level.

Prime Minister Datuk Seri Najib Tun Razak Monday announced various measures to liberalise the financial sector, among them the offer of takaful licenses to players who can bring significant value proposition to Malaysia to spur the development of the industry.

In a statement Tuesday, LIAM said the issuance of new licenses will also attract strong and reputable takaful players to the country, and this will augur well for the positioning of Malaysia as an Islamic financial centre.

The association said the increase in the foreign equity limit to 70 percent from the existing 49 percent was a move strongly welcome by the industry as it will make Malaysia an attractive place for established international players to set up their operations.

The Malaysian Institute of Accountant (MIA) in a separate statement said this move will result in Malaysia being more competitive apart from boosting the country's economy and allowing better regional economic consolidation.

MIA said the move will not only boost the financial sector but at the same time facilitate to full the transfer of knowledge and expertise between locals and foreigners.

-- BERNAMA