Innovation the key as takaful awareness grows

In 1999, Bank Negara Malaysia, in response to a moderate expansion of the sector in Malaysia, urged operators not only to explore new distribution channels as a means of cost reduction and efficient product delivery, but also to introduce new products and increase market penetration. Income from family and general Takaful increased by 24% (to RM340.8m) during 1999, although the rate of growth dropped by 16 per cent. Assets grew by 50.4 per cent to RM834.4m. Bank Negara reported that its Five Year Takaful Strategic Plan, launched in 1998, is well on schedule. Key components are legal infrastructure, accounting standards, and a code of ethics. Malaysia has two operators, Syarikat Takaful Malaysia Snd Bhd (STM) and Takaful Nasional Sdn Bhd (TNSB), with 118 branches and/or desks and 227 electronic terminals. TNSB has been given approval to market through financial institutions. STM is technol eddah-based IDB affiliate Islamic Corporation for the Insurance of Investment and Export Credit