KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways:
Stronger Sector Outlook: Fitch Ratings expects Malaysia’s takaful sector to maintain strong growth in 2025, backed by regulatory reforms, digitalisation, rising public awareness, and macroeconomic stability.
Upcoming Regulatory Enhancements:
RBC2 Framework (effective Jan 2027) will align capital standards with global norms, including new catastrophe risk charges and revised reserve requirements.
Hajah and Darurah Policy (implemented Jan 2025) now clarifies when conventional reinsurance can be used in takaful, especially under fund-threatening scenarios.
Refined digital insurer entry rules (from Mar 2025) to ensure early-stage viability and drive innovation.
Medical Takaful in Focus:
Rising health claim costs due to medical inflation have prompted gradual repricing and the introduction of co-payment rules since Sept 2024 to manage affordability.
Profitability and Investment Returns:
Family takaful net income surged 60% in 1H24, aided by strong investment gains.
General takaful profits reached MYR73.1 million, with lower flood claims and stable returns supporting performance.
Contribution Growth:
General takaful recorded 10.5% YoY growth in 1H24, driven by strong motor segment performance.
Family takaful showed a marginal 0.1% increase in contributions but lost market share to conventional life insurance, which grew 18%.
Summary:
Malaysia’s takaful industry is on a solid recovery path, with new policies by Bank Negara Malaysia supporting long-term sustainability and innovation. While family takaful faces competitive pressure from conventional life insurers, robust investment returns, improved regulation, and steady demand in motor and health segments are expected to drive sector strength into 2025.
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