Takaful Growth In Malaysia

The global takaful industry has witnessed tremendous growth in the last decade, rapidly becoming an increasingly important component of the Sharia-compliant banking and finance system.

South East Asia, particularly Malaysia, has become a key centre of this dynamic and vibrant industry and, according to reports by Bank Negara Malaysia, the takaful industry experienced a compound average growth rate of 27 per cent in terms of net contributions between 2005 and 2010.

Given the large untapped market that still exists, the takaful industry in Malaysia is poised to benefit in the years ahead on the back of steady demand. Similarly other key markets in South East Asia, such as Indonesia and Brunei, are also rapidly emerging as important takaful markets.