16/03/2026

MONDAY | MAR 16, 2026

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BANKING & INSURANCE

Malaysian insurance sector set to undergo major Reset: LIAM

Takaful Malaysia posts record 2025 profit before zakat and tax of RM616m PETALING JAYA: Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia), the pioneer and leading takaful provider in Malaysia, announced a resilient financial performance for the year ended Dec 31, 2025. The group’s takaful revenue rose to RM3.78 billion, an increase of RM201.7 million from RM3.57 billion in the previous year. Profit before zakat and tax recorded an all-time high of RM616 million, up from RM574.9 million in 2024. This performance was primarily driven by a higher release of the contractual service margin and increased net investment income. Takaful Malaysia group CEO Nor Azman Zainal commented: “Our 2025 results are a clear reflection of our strategic agility and market domi nance. “Despite a volatile economic land scape, we have consistently outpaced industry benchmarks through disciplined execution and a balanced portfolio. This growth is not just about numbers; it is a testament to our relentless pursuit of operational excellence and our commitment to delivering sustainable value to our stakeholders.” The 2025 fiscal year underscored the strength of Takaful Malaysia’s diversified business model. Key performance drivers included robust contributions from bancatakaful, treasury, employee benefits and general takaful business lines; a heightened public awareness of financial protection and a surge in demand for syariah-compliant solu tions and the group’s proactive digital first approach has streamlined operations and enhanced customer accessibility. By navigating market challenges with a well-executed strategy, the group has reinforced its solid foundation for long-term value creation, ensuring it remains at the forefront of the industry. Moving forward, Takaful Malaysia is accelerating its commitment to driving customer-centric innovation, advanced digital capabilities, and environmental, social, and governance integration. The group’s digital platform and brand, “Kaotim”, continues to be our growth engine. By expanding its online protection offerings, Kaotim has successfully penetrated the retail direct market, effectively complementing the group’s established bancatakaful partnerships. “Our focus for 2026 is clear: agility and strategic market expansion beyond bancatakaful,”Nor Azman said. “We are accelerating efforts to diversify our distribution footprint and drive business growth across multiple touchpoints. “By leveraging our core strengths and the momentum of our digital platforms and market expansion strategy, we are well-positioned to navigate future headwinds and continue generating long-term, sus tainable value for our customers, partners, and shareholders.”

Malaysian Takaful Association and the General Insurance Association of Malaysia to introduce the Medical Claims Inflation Report. He said the report is expected to be released in the coming weeks to clarify the actual medical claims inflation rate and address the many differing figures circulating in the market. LIAM has also completed a nationwide claims database, another regulatory initiative, which will enable the accurate calculation of the medical claims inflation rate. The figure will be published annually for the benefit of policy holders and the general public, he said. O’Dell said that significant work by the working group is being actively carried out together with appointed consultants to oversee the implementation of the MHIT plan. “There is a lot of work to be done, but we are confident that the MHIT plan can be delivered in 2027. “The heavy lifting is starting now, with task forces, working groups and other efforts needed to make decisions, draw up guidelines and support the basic MHIT plan,” O’Dell said. On prospects, he said Malaysia’s insurance industry is expected to remain cautious in 2026 and 2027 as significant changes take place. Despite the coming adjustments, O’Dell expressed confidence in the industry’s resilience, noting that insurers are generally able to adapt to substantial changes over time. PTPTN chief operating officer Mastura Mohd Khalid said, “This campaign is one of the best plat forms to encourage more borrowers to carry out their responsibilities so that PTPTN loans can be continued for future generations. In addition, through this campaign, PTPTN borrowers who win cash prizes are also given additional financial support and indirectly help them repay their loans or make savings.” Through CIMB Foundation, the bank has continued to advance financial literacy initiatives for both university students and working adults via programmes such as Be$mart and JagaDuit , which PTPTN borrowers will be able to access as part of this agreement. The collaboration also promotes smarter financial management among PTPTN borrowers through CIMB’s Durian-i account under Setel PTPTN Dengan CIMB . Borrowers can manage their repayments digitally while earning reward points through eligible transactions, increasing their chances of settling PTPTN loans of up to RM25,000.

major reform from the MoH, as a “complex packaged pricing” mecha nism that will alter the dynamics between payers and healthcare providers. He explained that under the framework, hospitals would agree to a fixed payment covering the full course of treat ment, rather than billing separately for each service,

o Govt-led initiatives to modernise and strengthen framework, address rising medical costs

RM500,000 cash prize pool into CIMB’s syariah-compliant Daily Unrestricted Investment Account-i (Durian-i) eco system, leveraging the respective strengths of both organisations to encourage responsible financial be haviour and consistent repayment habits. The partnership bridges the gap between debt obligations and wealth accumulation by incentivising PTPTN borrowers to utilise the Durian-i account. This strategic collaboration is a vital step in ensuring PTPTN’s fund remains sustainable for the next generation, CIMB said in a statement. To date, PTPTN has assisted over 4.27 million borrowers in pursuing higher education, with total loan disbursements exceeding RM77.63 billion. By introducing the Setel PTPTN Dengan CIMB campaign, which runs until Dec 31 this year, PTPTN aims to demonstrate that fulfilling one’s duty to the fund can be both rewarding and a KUALA LUMOUR: The Malaysian insurance industry is poised to enter a phase of major reforms under government-led Reset initiatives, including the introduction of the medical and health insu rance/takaful (MHIT) plan and diagnostic-related group (DRG) pricing to address rising medical costs. Life Insurance Association of Malaysia (LIAM) CEO Mark O’Dell ( pic ) said industry players support the MHIT initiative, which is scheduled to come into force in January 2027. “The industry is very supportive because it promises to be more affordable and sustainable, which will help at least two major population groups. “First, we hope it will bring more middle-class people into the private health insurance ecosystem, as well as provide those experiencing affordability or sustainability issues with an option that is adequate yet more affordable,” he told Bernama. Reset (Regulatory Enhancement for Sustainable and Efficient Taka ful/Insurance), a government-led programme involving Bank Negara Malaysia (BNM), the Ministry of Finance (MoF), the Ministry of

Health (MoH) and other stakeholders, aims to modernise and strengthen Malaysia’s insurance and takaful framework.

effectively requiring providers to manage costs more efficiently rather than passing them on under the existing fee-for-service model. “This is well under way, but it will take time to implement because it is quite complex, so it will be introduced gradually. “Hopefully next year we might see 20 to 30% of procedures under DRG, and the proportion will in crease year by year,” he said. Responding to the proposal for discussions between the MoF and the Employees Provident Fund (EPF) to potentially allow with drawals for products under the base MHIT plan, O’Dell said this step is a positive development. “But this will be an individual choice for consumers, allowing one additional avenue to help fund their MHIT. “So I think it is a good thing. They must be able to make their own decisions about how to utilise their EPF,” he noted. To comply with the new reforms, LIAM has collaborated with the

Commenting on whether the base MHIT plan’s annual limit of RM100,000 or RM150,000 is sufficient, O’Dell said industry data showed the average claim currently stands at about RM12,000, sug gesting the limit would cover the majority of cases. The base MHIT plan is designed to remain affordable while providing meaningful coverage by setting annual limits that cover common and high-volume treatments in private hospitals, he said. He added that more complex and costly treatments that exceed these limits are expected to continue being handled by the public healthcare system, as MHIT complements rather than replaces public healthcare. On current claims trends, O’Dell said respiratory illnesses and gastro intestinal conditions remain among the highest in claim volume, noting that these are common medical conditions expected to be covered in 99% of treatment cases. He characterised DRG, another

CIMB Islamic, PTPTN jointly promote good financial habits PETALING JAYA: CIMB Islamic Bank Bhd has formalised a collaboration agreement with Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) to promote positive financial wellbeing among PTPTN borrowers. This initiative integrates a independence more accessible, meaningful and rewarding.”

From left: CIMB CEO of group consumer banking Haniz Nazlan, Ahmad Shahriman, Mastura and PTPTN corporate communication and marketing department senior general manager Wan Zawiah Wan Abu Bakar at the launch of Setel PTPTN Dengan CIMB .

PTPTN borrowers with practical solutions and knowledge that encourage disciplined savings, res ponsible repayment as well as long term wealth creation. “By integrating flexible offerings such as our Durian-i account, we seek to make the journey towards financial

catalyst for personal financial growth. CIMB Islamic CEO Ahmad Shahriman Mohd Shariff said edu cation financing is often the first major financial commitment for many Malaysians, and through this colla boration, they aim to go beyond banking products by supporting

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