Malaysia: Takaful association launches five-year blueprint
Source: Middle East Insurance Review | Dec 2022
The Malaysian Takaful Association has launched its Financial Sector Blueprint (FSB) 2022-2026 to empower the takaful industry. The FSB supports the aspiration of Bank Negara Malaysia (BNM), the central bank, of providing financial services that meet the diverse needs of customers.
There are five strategic thrusts to the FSB, including fund Malaysia’s economic transformation, elevate the financial well-being of households and businesses, promote digitalisation of the financial sector, position the financial system to facilitate an orderly transition to a greener economy and advance value-based finance through Islamic finance leadership.
The FSB also supports value-based intermediation for takaful (VBIT), which focuses on the adoption of practices that generate a sustainable impact on the economy, community, and environment. The VBIT framework serves as a comprehensive guideline for implementing value-based intermediation practices and values in the takaful industry.
The blueprint also acts to address remaining inclusion gaps by focusing on the take-up and meaningful usage of financial services and promoting an enabling conduct environment for innovation and efficiency. It leverages financial infrastructures for Malaysia’s broader digital ecosystem and enhances pathways for digital innovations to test, scale and exit. The initiative will integrate climate-related and environmental risks in prudential regulation and supervision, as well as in internal functions and operations of takaful operators. M