Challenges of developing a takaful retirement annuity plan in Malaysia
Author
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 9, Issue 1 (30 Jun. 2017), pp.95-99, 5 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2017-06-30
Country of Publication
Malaysia
No. of Pages
5
Main Subjects
Financial and Accounting Sciences
Abstract EN
Purpose This paper aims to explore the challenges facing the development of a takāful retirement annuity plan in Malaysia.
It also aims at exploring a new platform to re-launch the same product after being withdrawn from the Malaysian annuity market a few years ago.
Design/methodology/approach The research adopts a qualitative approach to address the possible challenges hindering the development of a takāful retirement annuity plan in Malaysia.
The research will not discuss the Sharīʿah issues deemed settled in previous researches but will only focus on technical challenges related to the instruments of investment and prudential measures.
Findings The research found that various challenges face the development of a takāful annuity plan in Malaysia.
Some of those challenges are the downsizing of the ṣukūk market, the shortage of long-term ṣukūk, longevity risk and risk-based capitalization.
The research found that there is a need for a diversified portfolio of securities instead of solely using ṣukūk as an investment instrument in this product.
Originality/value Re-launching the takāful annuity plan in Malaysia requires the identification of actual challenges facing the development of such a product.
The product purported to be re-launched would benefit a large segment of retirees who do not have enough savings during the retirement age.
The introduction of such a product will also expand the takāful market in annuities, which remains untapped.
American Psychological Association (APA)
Sawalihi, Yunus. 2017. Challenges of developing a takaful retirement annuity plan in Malaysia. ISRA International Journal of Islamic Finance،Vol. 9, no. 1, pp.95-99.
https://search.emarefa.net/detail/BIM-965050
Modern Language Association (MLA)
Sawalihi, Yunus. Challenges of developing a takaful retirement annuity plan in Malaysia. ISRA International Journal of Islamic Finance Vol. 9, no. 1 (2017), pp.95-99.
https://search.emarefa.net/detail/BIM-965050
American Medical Association (AMA)
Sawalihi, Yunus. Challenges of developing a takaful retirement annuity plan in Malaysia. ISRA International Journal of Islamic Finance. 2017. Vol. 9, no. 1, pp.95-99.
https://search.emarefa.net/detail/BIM-965050
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 99
Record ID
BIM-965050