IslamicFinance.de

Malaysia, which is the second largest takaful market in terms of gross takaful contribution, is forecasted to hit US$3.024 billion (RM10.1 billion) in 2014 from US$2.436 billion in 2013. Bank Negara's target is to achieve a penetration rate of takaful of 75% by 2020, from currently 15%. Meanwhile, the local takaful industry is expected to see increased merger and acquisition activities between now and the end of next year, with the introduction of the Islamic Financial Services Act (IFSA). Malaysia's takaful industry achieved compounded annual growth rate of 24% over the last five years. Industry estimates indicate that given a conducive economic climate and its young demographics, Malaysia's takaful industry may be able to continue its double-digit growth path.