Following the announcement made on 27 April 2009 on the issuance of two family takaful licences under liberalisation of the financial services sector, Bank Negara Malaysia has received several strong applications for the family takaful licences.
Given the more favourable prevailing economic conditions since the announcement and the vast potential to further enhance the insurance penetration rate in Malaysia and in the region, there are tremendous growth opportunities for the insurance and takaful industry in supporting the requirements of the economy. In view of these considerations and the strength of many of the applicants, there is an opportunity to allow more players in the Malaysian takaful sector. In relation to this, the Minister of Finance has approved the granting of two family takaful licences in addition to the two licences that have been announced earlier. Bank Negara Malaysia therefore wishes to announce that the Minister of Finance has approved the issuance of the four family takaful licences pursuant to the Takaful Act 1984 to the following joint ventures:
- American International Assurance Berhad (70%) and Alliance Bank Malaysia Berhad (30%);
- AMMB Holdings Berhad (70%) and Friends Provident Group plc, UK (30%)
- ING Management Holdings (Malaysia) Sdn Bhd (60%), Public Bank Berhad (20%) and Public Islamic Bank Berhad (20%); and
- The Great Eastern Life Assurance Company Limited (70%) and Koperasi Angkatan Tentera Malaysia Berhad (30%);
In assessing the applications, Bank Negara Malaysia has taken into consideration the applicants' financial soundness and resilience, track record, expertise, business plan and contribution towards financial sector development in Malaysia. The new family takaful operators have strong value propositions that will further enhance the development of the family takaful industry in Malaysia, in particular in penetrating untapped areas of business within the family takaful industry including microtakaful, medical and retirement products. They will also contribute strongly towards reinforcing Malaysia's position as an international Islamic financial hub.
Bank Negara Malaysia
1 September 2010