demand for shariah - compliant products - by extending takaful coverage to underserved segment of society and embedding new features and services that aligns with a muslim's religious needs ( for example, badal hajj, waqf and charity ). these differentiators, which are commendable, should be further scaled up and further diversified. exploration of more distinctive business models are envisaged, such as social blended takaful through the use of private and social funds complemented by targeted financial and risk management programmes. this is similar to the blended finance in the banking side. in driving differentiation and value - based innovation, digital technology should be harnessed, and this is where the industry should make full use of the conducive regulatory environment provided through the regulatory sandbox and 2 / 4 bis - central bankers'speeches digital insurance and takaful operator ( dito ) framework – where we recently concluded the public consultation on the exposure drafts and in the process of finalising the policy documents. we at bank negara malaysia are keen to facilitate emerging innovative business models by new entrants and incumbents through these initiatives. the second priority is on self - governance and best conduct, to align the organisation's strategic orientation with shariah values. the last sermon by prophet muhammad ( peace be upon him ) serves as a reminder. he said, " - so regard the life and property of every muslim a sacred trust - ". within the context of takaful business, this underscores the importance of takaful operators to have good management of takaful business, based on the amanah ( trust ) provided by the contributing participants and society at large. complementing the amanah and ihsan principles as a standard of excellence provides an ethical framework to drive the best of conduct, an area often overlooked in the pursuit for profit. the integration of shariah principles, maqasid shariah and vbit across the value chain and in managing the takaful funds, is not only expected but crucial for the industry's advancement. takaful industry must be steadfast in upholding expectations by acting in the best interest of takaful participants and recognising the role of takaful operator as manager ( wakeel ) with fiduciary responsibilities. takaful operators should also not lose sight of the vital importance of having robust control function. this ensures continuous enhancements

suhaimi ali : keynote address - takaful rendezvous 2023 keynote address by mr suhaimi ali, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the takaful rendezvous 2023, kuala lumpur, 26 september 2023. * * * assalamu'alaikum and a very good morning to distinguished guests, ladies and gentlemen. we are a few months away from the 40 - year milestone when the malaysia's takaful act 1984 was enacted to provide legal foundation for takaful establishment in malaysia. over the years, the industry continues to grow in terms of offerings and quality of their participation in the financial system. the size of the takaful industry has expanded nearly three times to where it was a decade ago1. this growth is propelled by the growing public awareness of takaful products and a supportive islamic finance ecosystem. notwithstanding these strides, the takaful industry is also facing critical challenges to attain scale, expertise and to have the right business model. these challenges have become roadblocks for the industry to be on a better footing to resolve the social protection needs in malaysia and facilitate an orderly transition to a greener economy. globally, the takaful industry has also demonstrated significant progress and developments. today, there are more than 330 takaful operators in 47 countries2 worldwide. global takaful assets size stands at an estimation of usd73 billion3, almost doubled from where it was in 2015. nonetheless, navigating the path to attain greater market maturity is still a long journey with current takaful share stands only at a modest 1 % relative to the global insurance market. last week at the 18th kuala lumpur islamic finance forum ( kliff ), i spoke about four key game - changers for islamic finance, which is also relevant to the context of takaful industry today. learning from the successes of the islamic golden age, we must continue to focus on a number of key attributes to propel the industry forward : 1. first, is to have a strong shariah compass that guides and drives the takaful activities. to yield meaningful impact, businesses, practitioners and industry leaders of today must realign their practices to stay true to the spirit of islamic finance that places a strong emphasis on the benefit and welfare to society, beyond just profit - maximisation as a primary objective. 2. second, is the need to have a culture of innovation. great islamic civilisation