JANUARY-FEBRUARY . 2023 | @ Halal
Local News
07
Elevating Malaysian takaful industry to a higher level
MTA and INCEIF University launch pioneering research to develop a scorecard for the Malaysian takaful industry
THE Malaysian Takaful Association ( MTA ) announced the launch of pioneering industry-driven research to develop a scorecard based on the Maqasid al-Shariah ( objectives of Shariah ) to elevate the performance of the Malaysian takaful industry to a higher level .
Anticipating the industry ’ s pain points to develop workable and measurable performance indicators to chart the progress and impact of its growth and development , MTA initiated a strategic collaboration with INCEIF University to develop a Maqasid al-Shariah Scorecard ( MSS ).
MTA Chairman Elmie Aman Najas stated that 2022 was a significant year for the industry as it embraced the launch of Bank Negara Malaysia ’ s ( BNM ) Financial Sector Blueprint ( FSB ) 2022-2026 in January and the industry ’ s Value-Based Intermediation for Takaful ( VBIT ) Roadmap in October . Both frameworks set out the strategic direction , aspirations , and initiatives to be achieved by the industry within the next two to five years .
In his speech during the MSS launching ceremony , Elmie shared that the scorecard could be the first of its kind in the world developed for industry .
While all the initiatives identified by the VBIT Roadmap would benefit the industry , society and country , MTA acknowledged a distinct need to connect all these initiatives to the spiritual aspect of VBIT .
He added : “ This connection is critical as the acceptance of takaful as an alternative to conventional insurance is predominantly due to it being Shariah-compliant in nature , which by default suggests its compliance to Maqasid al-Shariah .”
INCEIF University Board of Directors Chairman Tan Sri Azman Mokhtar said INCEIF ’ s strategic collaboration with MTA would offer the takaful industry a much-needed instrument in realising the true spirit of Maqasid al-Shariah .
“ In particular , the development of the firstof-its-kind scorecard will help to identify the key
DUOPHARMA Biotech Berhad recorded a new milestone when it became the first pharmaceutical company to receive halal certification for an oncology product , awarded by the Department of Islamic Development Malaysia ( JAKIM ).
The product is currently approved as an adjuvant treatment for postmenopausal women with early breast cancer and a first-line treatment for postmenopausal women with advanced breast cancer .
Produced at Duopharma Biotech ’ s Highly Potent Active Pharmaceutical Ingredients ( HAPI ) facility located in Glenmarie , Shah Alam , the halal oncology product is supplied to government and private healthcare hospitals in Malaysia . It has also recently been approved for export to Brunei and Singapore .
Leonard Ariff Abdul Shatar , Duopharma Biotech Group Managing Director , said :
“ This milestone halal certification for an oncology product manufactured at Duopharma Biotech ’ s HAPI facility is in line with our ESG commitment , where one of our key focus areas is Access to
Tan Sri Azman Mokhtar .
performance indicators and their desired outcomes in line with the intrinsic values of Islamic finance as outlined by BNM . This will further enhance the impact measurement instruments needed by the takaful industry in Malaysia .”
For the Takaful and Retakaful operators , the scorecard will benefit them in many ways , including facilitating Maqasid compliance through strategic planning , enhanced decision-making , advanced reporting and full transparency .
The scorecard is a measurement tool to demonstrate and validate VBIT based on Maqasid al-Shariah and set a clear distinction between conventional insurance and takaful in terms of value proposition and product differentiation . This , in turn , would enhance the stakeholders ’ confidence and satisfaction in Takaful / Retakaful value proposition , ensuring that the operators can handle financial shocks and remain resilient . Also important , the initiative would showcase Malaysia as a global leader in operationalising Maqasid in Takaful and Retakaful products and services .
The Association envisions that the MSS will enable the takaful industry to accurately measure their business and non-business performance based on well-defined KPIs , clear targets and timelines . It will also facilitate Maqasid al-Shariah compliance and enhance decision-making , strategic planning , advanced reporting and better transparency .
Duopharma receives halal certification for an oncology product
Tuan Haji Bukhari Md Akhir from JAKIM with Wan Amir Jeffery , CEO ( Commercial ) of Duopharma Biotech .
Medicine .
“ We are making continuous efforts to provide consumers and patients with access to muchneeded medicines and therapies – assured safe for use and effective , high in quality , hygienic and halal from the start . Our state-of-the-art HAPI facility plays a vital role in the fight against many diseases , enabling us to embrace innovation and technology to serve patient needs and expand access to specialised therapies .”
Malaysia ’ s Shariah registered financial planner programme expanding globally
MALAYSIAN Financial Planning Council ( MFPC ) held a signing ceremony with Salaam Center , a leading training , research and consultancy provider based in Djibouti , East Africa . This agreement is in respect of MFPC using its existing Shariah RFP content , albeit with the inclusion of locally relevant content for individuals in East Africa .
MFPC is pleased and delighted that the Malaysianbased modules have been accepted in the international market after an objective and Salaam Centre conducted a thorough assessment . The South-East Asia countries and the MENA market are also considering MFPC ’ s programme . MFPC is optimistic that this initiative will produce significant results and achieve success .
MFPC programme , the Shariah Registered Financial Planner , has consistently won the Global Islamic Finance Awards ( GIFA ) for seven years in different categories , with the latest instalment of the award in 2022 recognising the Shariah RFP as the Best Islamic Finance Qualifications .
The award was awarded based on MFPC ’ s Shariah Registered Financial Planning ( RFP ) programme . A team of Shariah experts has developed the syllabus of the Shariah RFP programme . The Shariah RFP programme is a dynamic and evolving one . The Council reviews , revises and updates the syllabus regularly to ensure it remains relevant and reflects current industry needs , regulatory changes , and requirements .
Bank Negara Malaysia approves the Shariah RFP and RFP designations as a professional qualification for applying for the Financial Adviser Licence and Financial Adviser Representative Licence and the Securities Commissions Malaysia for the application for the Capital Market Services Licence .
FWD and Artem Ventures launch RM45 million fund
FWD Group Holdings Limited announced the launch of TIM Ventures , an RM45 million venture capital fund in collaboration with Artem Ventures , a Malaysia-based venture capital firm , to invest in emerging start-ups in the insurtech and Islamic fintech space in Malaysia .
Small and medium enterprises ( SMEs ) are a critical component of the Malaysian economy , contributing more than a third of the gross domestic product and providing job opportunities to more than four million workers in Malaysia .
“ By launching TIM Ventures , we hope to support early-stage entrepreneurs in Malaysia by not just providing them with financing but also helping to connect them with the networks and expertise they need to succeed ,” said Sim Preston , FWD Managing Director and Group Chief Operating Officer .
“ We hope to invest in businesses that share our vision as we work together to change how people feel about takaful .”
The fund has already invested in four start-ups , including winners from the FWD Start-Up Studio , a pre-accelerator programme launched in 2021 , to become a leading innovation hub in Malaysia .
Binayak Dutta , FWD Managing Director , Emerging Markets and Group Chief Distribution Officer , said : “ The launch of this fund , together with our pre-accelerator programme , FWD Start-Up Studio , signifies our continued commitment to the Malaysian market and the role we want to play in closing the takaful protection gap . This initiative allows us to partner with exciting emerging talent and develop innovative new technologies to achieve a brighter , digital future .”