07/05/2026

BIZ & FINANCE THURSDAY | MAY 7, 2026

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Malaysian Paper

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Motor insurance premiums to remain stable for now

“Our priorities remain centred on delivering differentiated customer experiences through innovation and seamless digital capabilities, while advancing sustainable growth and further strengthening our position as a responsible and purposeful financial services group across Asean,” said Ahmad Badri. At the AGM, shareholders approved, among others, the re-election of Ahmad Badri, Datuk Iain John Lo and Lim Cheng Teck to the board of directors. The board also recorded its appreciation to Ong Ai Lin, the group’s senior independent non-executive director, who stepped down after reaching the nine-year tenure limit for her contributions and guidance to the group. Singapore fintech Aleta Planet secures money services business and e-money licences in Malaysia PETALING JAYA: Singapore fintech Aleta Planet said it has secured licences from Bank Negara Malaysia (BNM) to provide remittance and e money services in Malaysia, which will be its second hub in Asean The Money Services Business Class B and an E-Money Issuer licences will allow Aleta Planet to support its expansion in Malaysia, and add to its existing merchant acquirer licence that enables the company to process credit and debit card payments. Aleta Planet founder and group chairman Ryan Gwee said, “Securing this approval from Bank Negara Malaysia is a key milestone for Aleta Planet as we expand our footprint in the region. As a licensed e-money issuer and merchant acquirer, we can now offer a more complete payments solution. Together with our remittance capabilities, this strengthens our ability to support cross-border trade and deliver a more seamless payment experience for businesses and consumers in Malaysia.” Malaysia’s digital payments landscape is undergoing a rapid transformation, with total transaction value projected to reach RM1.13 trillion in 2026, according to BNM and Statista, underpinned by robust trade activity. The country’s total trade value exceeded RM3 trillion in 2025, based on Malaysia External Trade Statistics 2025 released by Ministry of Investment, Trade and Industry, while cross border e-commerce now accounts for nearly 40% of digital transactions, citing from Malaysia Digital Economy Corporation and JPMorgan payments reports. Non-bank e-remittance volumes have also grown 11% to reach RM14.1 billion annually, based on BNM’s Annual Report 2023, reflecting increasing demand for scalable, non-traditional payment solutions as Malaysia’s digital economy matures. The approvals enable Aleta Planet to better support the growth of Malaysia’s economy. The company said it intends to facilitate high value trade and payment flows by serving Chinese investors and tourists entering Malaysia, as well as Malaysian exporters, particularly in the machinery, technology and agricultural sectors, by streamlining international settlement and remittance activities. Building on its proven track record in Singapore, Aleta Planet is tailoring its capabilities for Malaysian businesses as it is looking to establish a second Asean hub to drive deeper regional financial integration. The company’s expansion strategy focuses on three core pillars – scaling the high-growth trade and travel sectors across Malaysia-Singapore; cross-border payments in trade, travel, and student remittances between Malaysia-China, and remittance and investment flows between Malaysia and Asean.

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

o Insurers containing cost pressures through operational efficiencies and tighter management, spare parts inflation manageable so far, says PIAM

KUALA LUMPUR: Premiums in the motor insurance segment are expected to remain stable despite rising claims costs and spare parts inflation, said General Insurance Association of Malaysia or Persatuan Insurans Am Malaysia (PIAM). PIAM CEO Chua Kim Soon said insurers have managed to contain premium increases through operational efficiencies and tighter management across the motor insurance ecosystem. “At this moment, insurance premiums in the motor insurance space have been fairly stable because insurers have been able to optimise operational efficiency and ensure the whole motor ecosystem supports more managed losses and prevents unnecessary spikes. At this moment, I don’t see a high spike in premiums,” he told reporters at a media briefing yesterday. Chua said geopolitical tensions have had limited direct impact on the motor insurance segment, apart from some pressure on material and spare parts costs. He added that spare parts inflation remains manageable for now, with cost increases still within single-digit levels despite varying across vehicle models and component sources. “At this moment, spare parts costs are rising in single-digit increases. Of course, it varies from model to model, depending on the origin of the spare parts. But currently, we believe the industry can still manage it,” he said. PIAM’s industry data showed that private car claim severity rose to RM8,831 in 2025 due to spare parts inflation, particularly involving the Proton Saga and Proton X50. The association also said private car claim frequency remained above 7% in 2025, with models such as the Proton X50 and X70 naturally recording higher claim frequency among younger drivers because they are among the country’s highest-volume vehicle segments. Chua said spare parts are not the only driver of claims inflation, pointing to bodily injury claims and court-awarded compensation as another major pressure point for insurers. “When I first started my career, the highest claim I experienced was probably RM500,000. But now we are seeing more and more claims exceeding RM1 million. The highest has gone as high as RM8 million.” Chua said Malaysia’s motor insurance framework provides unlimited third-party bodily injury liability coverage, meaning there is no cap on compensation awards. “In Malaysia’s motor insurance policy, there is no limit on third-party bodily injury liability.

PIAM chairman Ng Kok Kheng (left) and Chua during a question-and-answer session at the media briefing in Kuala Lumpur yesterday. – BERNAMAPIC

Chua said there were at least 115 accidents per 100,000 population based on 2022 data, while the country records 18 motor-related deaths daily, with two-thirds involving motorcyclists. “At least 80% of accidents are due to human error. It is not because of faulty vehicles or poor road conditions,” he highlighted. Malaysia’s general insurance industry recorded Gross Written Premium of RM24.2 billion in 2025, a 4.8% increase from RM23.1 billion in 2024. The industry’s underwriting profit reached RM1.2 billion; an improvement of RM125 million year-on-year with the overall combined ratio for underwriting results remaining around 93%. Motor insurance, which remains the general insurance industry’s largest line of business at 45.2% of total premiums, continued to register underwriting losses of RM289.3 million, with a combined ratio remaining at 103%. Non-motor business lines – particularly fire, marine, aviation and transit, and personal accident – contributed positively to the overall underwriting result. Fire insurance recorded an underwriting profit of RM700.8 million or a combined ratio of 69.5%. phase of PROGRESS27 with a clear focus on execution, underpinned by prudent risk management and long-term value creation. During the year, RHB continued to make progress on its sustainability commitments, mobilising about RM60 billion in sustainable financial services, representing 67% of its RM90 billion target by 2027. This includes RM34 billion in green financing, RM11 billion in social financing and RM15 billion in environment, social and governance linked financing. The group also achieved 63% of its RM1 billion sustainable trade finance target and empowerment of over 1.5 million individuals and businesses, representing 61% of its 2027 target.

There is no cap, so policyholders are protected with unlimited coverage.” Motor insurance losses are unlikely to change significantly in the near term as insurers continue working to contain rising cost pressures and keep premiums stable, Chua said. “We are trying to manage inflationary pressures from spare parts, labour costs and repair methods. Court awards are more difficult because they depend on lawyers and judges, which is somewhat beyond our control. “But in areas within our control, we continue working with independent repairers, franchise workshops and industry partners to manage costs.” The industry also highlighted climate related risks and evolving vehicle tech nologies, including electric vehicles (EV), as emerging structural challenges reshaping future motor risk profiles. PIAM said insurers are increasingly focusing on EV coverage, climate risk solutions and digital distribution channels to strengthen long-term resilience and competitiveness. At the same time, Malaysia continues to record one of the region’s highest accident rates.

RHB delivers resilient earnings, sustained shareholder returns in FY2025 PETALING JAYA: RHB Bank Bhd delivered resilient earnings and strong shareholder returns for the financial year ended Dec 31, 2025 (FY2025), with net profit rising 7.8% year on year (y o y) to RM3.4 billion. dividend yield of 6.5%, placing the group among the more consistent dividend payers in the Malaysian banking sector.

These results, together with the group’s key achievements and priorities moving forward under PROGRESS27, were presented to shareholders at the group’s 60th Annual General Meeting (AGM) yesterday. Chairman Tan Sri Ahmad Badri Mohd Zahir said, “RHB has delivered a resilient set of results amid a more challenging operating environment. The group remains firmly focused on sustaining earnings quality, maintaining capital strength and delivering consistent value to shareholders.” He added that the group is entering the next

Total income increased 2% y o y to RM8.8 billion, while return on equity strengthened to 10.5%, supported by improved credit quality, disciplined cost management, and continued balance sheet strength, reflecting the group’s disciplined operating model. In line with its commitment to sustainable shareholder returns, RHB declared a total dividend of 50 sen per share for FY2025, translating into a payout ratio of 65% and a