Malaysia: Central bank to issue policy document aimed at unlocking the full potential of takaful
Source: Middle East Insurance Review | Dec 2025
Bank Negara Malaysia (BNM) plans to issue a policy document on the broader application of ta`awun (mutual assistance) in takaful by the end of this year, outlining Shariah and regulatory requirements to unlock the full potential of the industry in fostering financial resilience and inclusion.
In a statement, BNM said the upcoming policy framework aligns with maqasid shariah objectives.
The initiative was among the key outcomes of the Sixth Centralised Shariah Authorities Forum (CSAF) Bank Negara hosted in Kuala Lumpur in October 2025.
Bank Negara Shariah Advisory Council chairman Dr Ashraf Md Hashim chaired the meeting, which gathered more than 50 delegates from 10 countries, as well as international Islamic standard-setting bodies.
The meeting also discussed recent legal reforms that recognise the takaful fund as a separate legal entity, noting that the Central Bank of the United Arab Emirates plans to strengthen the takaful fund’s governance framework to ensure transparency, accountability, and shariah compliance.
BNM also said the meeting accepted the terms of reference for the CSAF platform, marking a significant step in strengthening the governance structure, clarifying roles and responsibilities and enhancing coordination among member authorities to achieve shared strategic objectives. M