19/09/2024

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THURSDAY | SEP 19, 2024

M’sian insurance, takaful sectors show robust growth

Crest Group in expansion mode,

optimistic on tech industry Ű BY JOHN GILBERT sunbiz@thesundaily.com

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Touching on the technological advancements and shifting customer expectations that demand adaptation and evolution of the insurance sector, he said: “The reality is that artificial intelligence, big data and robotics are reshaping the way we live, work and play in profound ways.” Abdul Rasheed said as customers become increasingly accustomed to the responsiveness and convenience offered by technology in many aspects of their lives, their expect ations will naturally extend to the insurance sector. “Insurers are increasingly expected to provide a seamless experience, tailored to the specific needs of various types of covers. An inspiring innovation in this space is ‘parametric insurance,’” he added. By eliminating much of the paperwork and manual processes associated with traditional insurance claims, parametric insurance can lead to faster payouts and resolution times, he pointed out. As to the rapid ageing of the population, he said that by 2044, 14% of Malaysia’s population is expected to be of those 65 years or older, making it an “aged society”. “This so-called ‘silver tsunami’ phenomenon will see a shrinking share of the working age population supporting a growing share of the old-aged persons. This population segment is often underserved and demands specific needs such as healthcare, long-term care and financial security, but oftentimes have limited access to insurance due to lack of awareness, trust or affordability.” Abdul Rasheed said insurers and takaful operators will need to expand their capacity and readi ness to narrow critical protection gaps and strengthen financial safety nets. “Ensuring the availability of raw materials will allow these companies to set up operations in Malaysia without incurring extra costs from importing goods.” In addition, he said, the govern ment is exploring potential improve ments to the halal industrial parks that include increasing capacity for production and export, further positioning Malaysia as a leader in global halal exports. “We are also working on streamlining processes and creating more efficient halal parks, with a strong focus on export potential. This is part of a broader strategy to meet growing global demand for halal products and services,” he added.

o They are at pivotal point, with strong prospects and opportunities, as well as challenges: Bank Negara governor

KUALA LUMPUR: Crest Group Bhd, which is en route to a listing on the ACE Market of Bursa Malaysia Securities, is optimistic about the growth of the semiconductor and electronics and electrical (E&E) sectors, which will accelerate the company’s client base and expansion in the region. Executive director and managing director Lim Siong Wai said Crest Group sees rising demand and growth of the technology sector, particularly in artificial intelligence (AI), semiconductors, E&E, academia, automotives, oil and gas, aviation, life sciences and healthcare. “The semiconductor sector alone contributes about 60% of our revenue, and we are quite positive in achieving consistent, if not higher, contribution from this segment,”he told reporters after the launch of its initial public offering (IPO) prospectus yesterday. According to its latest audited financials for the year ending Dec 31, 2023, Malaysia contributed 37.6% of total revenue. Crest Group aims to raise about RM45.75 million by issuing 130.7 million shares at an IPO price of 35 sen per share. With an enlarged share capital of 865.59 million shares, the company’s estimated market capital-isation upon listing will be RM302.96 million. The IPO shares have been classified as syariah-compliant, and the company plans to target a dividend payout ratio of at least 30% of its annual profit after tax attributable to shareholders. “We have grown from strength to strength, expanding our presence into China, Thailand and Singapore. Crest Group is allocating RM14.52 million, or 31.73% of the IPO proceeds to expand its presence in key markets. The plans include opening offices in Ho Chi Minh City in Vietnam, and Chengdu and Shenzhen in China. MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

KUALA LUMPUR: New business premiums in the life insurance and general insurance industry recorded double-digit growth in the first half of 2024 to more than RM20 billion, according to Bank Negara Malaysia governor Datuk Abdul Rasheed Ghaffour. He said the family takaful and general takaful industry also showed growth to record total contributions of over RM7 billion. “To realise our full economic potential, it is important that we remain resilient to shocks and disruptions and continue to put risk management at the top of our agenda. This is where insurance and takaful protection can play its part – one that will foster greater stability and resilience in our economy,” he said at the rebranding of Malaysian Insurance Institute to Asian Institute of Insurance yesterday. The rebranding of the institute reflects its ambition to lead insurance

unpredictable nature of these emerging threats and their potential to cause widespread impact, conventional risk models that depend on historical data and established patterns for predicting and pricing risks may struggle to address them,” Abdul Rasheed said. As is commonly the case, he added, the more complex the risk, the harder it is to model and predict. “This in turn poses challenges to assess and underwrite such risks effectively. As a result, risk owners may end up facing higher premiums, more stringent under writing or underinsurance.” Abdul Rasheed said the impact will be most strongly felt by vulnerable populations, such as low-income individuals and small businesses.

education and professional develop ment across Asia. Stating that the Malaysian insurance and takaful sectors are at a pivotal point, Abdul Rasheed said they have observed evolving trends and developments, part of the dynamic Asian region, with strong prospects and opportunities, that shape the nature of emerging risks facing businesses and consumers today. He said these present both opportunities and challenges for the sector. On the escalating frequency and severity of global risks that challenge traditional risk models, Abdul Rasheed remarked that they include climate change and cyber threats. “Given the dynamic and often

Abdul Rasheed (centre), Asian Institute of Insurance chairman Antony Lee (second from left) and CEO Paul Low (second from

right) at the rebranding ceremony. – BERNAMA[PIC

Malaysia to expand halal industrial parks to stay at global forefront

and the Malaysian Investment Development Authority (Mida), along with industry players, are focusing on strengthening Malaysia’s supply chain, particularly in sectors related to food, beverages, and consumer products. A key element of this strategy is ensuring the availability of local raw materials, which plays a critical role in attracting foreign companies. “If foreign companies need to import significant amounts of raw materials, it creates double costs, which we are aiming to minimise. “Our goal is to ensure that companies can rely on locally sourced materials, reducing production costs and enhancing Malaysia’s competitiveness,” Khairul said during a session with the

said Khairul. He pointed out that palm oil-based products are a key area of focus within the halal industrial parks, given their significance to Malaysia’s industrial landscape. “These products serve as key components in food production and other consumer goods. Palm oil and its derivatives play a crucial role in our halal production. By enhancing the infrastructure around this resource, we can offer more value to foreign investors,” he added. Khairul emphasised the importance of improving the local supply chain as Malaysia seeks to attract more foreign companies, particularly from China.

media at the Malaysia International Trade and Exhibition Centre yesterday. He highlighted that HDC, alongside the government, is developing new incentives for both foreign and domestic investors. These incentives include tax benefits, allowances, and infrastructure improvements, all designed to make Malaysia a more attractive destination for foreign direct investment, especially within the halal sector. “We are committed to providing the necessary incentives to strengthen Malaysia’s position as a global hub for halal products. “This includes expanding our halal industrial parks to accommodate more investors and ensuring that the supply chain supports their growth,”

Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia is stepping up efforts to expand its halal industrial parks, with the aim of boosting local production capabilities and attracting foreign investment, particularly from multinational companies. Halal Development Corporation Bhd (HDC) chairman Khairul Azwan Harun said this initiative is part of the country’s broader strategy to cement its position as a global leader in the halal industry, leveraging its established infrastructure and strategic location. He explained that government bodies such as the Ministry of Investment, Trade and Industry (Miti)