Malaysia
Insurance and Investment Regulations in Malaysia
The Insurance and Investment Regulations in Malaysia are facilitated and controlled by Bank Negara Malaysia. It is important for Financial Services Professionals in the United States to beware of this when dealing with immigrants or citizens from Malaysia with Insurance and Investment interest in Malaysia. It is critically important to understand that Bank Negara Malaysia is the central bank for Malaysia. Bank Negara Malaysia supervises:
- Investment Operations and Financial Market
- Insurance and Takaful Supervision
Investment Operations and Financial Market - Securities Commission of Malaysia
The Securities Commission of Malaysia is a self-funding statutory body with investigative and enforcement powers. It reports to the Minister of Finance. The SC's many regulatory functions include:
Licensing Examinations
The SIDC serves as a one-stop examination centre for those seeking to be licensed under the Securities Industry Act 1983 and Futures Industry Act 1993. It also sets examinations for those seeking approval for registration with the relevant Exchanges and as mandated by the various guidelines issued by the Securities Commission. Passing these mandatory examinations is one of the pre-requisite for individuals wishing to be licensed or registered.
- General Enquiry and Corporate Related Matters
Corporate Affairs Department -Securities Commission
No 3, Persiaran Bukit Kiara - Bukit Kiara - 50490 Kuala Lumpur
Tel: 603-6204 8777 Fax : 03 6201 5078 E-mail: cau@seccom.com.my - Training & Education - SIDC Corporate Services -Securities Commission
No 3, Persiaran Bukit Kiara -Bukit Kiara - 50490 Kuala Lumpur
Tel: 603-6204 8667 / 8669 Fax: 603-6201 8008 Email: sidc@seccom.com.my
The CIA Factbook
The CIA Factbook indicated that Malaysia is predominately Muslim followed by Buddhist, Daoist, Hindu, Christian, Sikh. (Shamanism is practiced in East Malaysia) This brings us to the importance of Islamic Shari'ah principles in Malaysia as well as other Muslim countries.
Islamic Financial Services Board
The IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Islamic Shari'ah principles, and recommend them for adoption. To this end, the work of the IFSB complements that of the Basel Committee on Banking Supervision, International Organization of Securities Commissions and the International Association of Insurance Supervisors.
Continuing Education Program
CPE is a continuing education program for educating market professionals, and is mandatory for all licensed representatives. Attendance of CPE courses has been made a condition for licence renewal. All Licensed Representatives must undergo the programme and collect the required number of CPE points if they wish to renew their licences.
Malaysia Insurance and Takaful Supervision
Life and General Business Life Business Only General Business Only Life and General Reinsurance Business Life Reinsurance Business General Reinsurance Business Takaful Operators Muslim and Islamic beliefs brings us to the importance of Takaful (Islamic insurance) principles in Malaysia as well as other Muslim countries.
Overview of Takaful in Malaysia
The concept of
Takaful (Islamic insurance) was first introduced in Malaysia in 1985 when the first takaful operator was established to fulfil the need of the general public to be protected based on the Islamic principles. The legal basis for the establishment of takaful operators was the Takaful Act which came into effect in 1984. Insurance as a concept does not contradict the practices and requirements of Shariah. In essence, insurance is synonymous to a system of mutual help. However, Muslim jurists are of the opinion that the operation of conventional insurance does not conform to the rules and requirements of Shariah as it involves the elements of uncertainty (Gharar) in the contract of insurance, gambling (Maisir) as the consequences of the presence of uncertainty and interest (riba) in its investment activities.
Insurance Education and Resources
General Insurance Association of Malaysia
The Malaysian Insurance Institute
Leader in providing training and education in Insurance, Risk Management, Actuarial Science, General Management, Investment, Life Insurance, Marketing and Financial Services. Get More Information
International Association of Insurance Supervisors (IAIS)
Established in 1994, the IAIS represents insurance regulators and supervisors of some 180 jurisdictions in more than 130 countries, constituting 97% of the world's insurance premiums. Get More Information on IAIS
The Life Insurance Association of Malaysia (LIAM) or Persatuan Insurans Hayat Malaysia
LIAM has a total of 18 members, of which 16 are life insurance companies and 2 life reinsurance companies. The objectives of LIAM are:
- To promote public understanding and appreciation for life insurance
- To improve the image of the life insurance industry through self-regulation
- To give support to the regulatory authorities in developing a strong and healthy industry
- To enhance the professionalism of staff and agents through continuous training and education
- To liaise and work with local and foreign life insurance organisations towards achieving common objectives and benefits
InsuranceInfo - Cosumer Awareness
Cosumer Awareness Program for Insurance and Takaful
Duitsaku.com
Financial Education Website for school kids and teenagers.
The Employees Provident Fund
The Employees Provident Fund (EPF) is a national social security organization operating through a provident fund scheme in Malaysia. Principal members are the private and non-pensionable public sector employees.