BISMILLAHIRAHMANIRAHIM,

•    Yang Amat Berbahagia Tun Dr Mahathir bin Mohamad

•    Yang Amat Berbahagia Tun Dr Siti Hasmah binti Mohd Ali

•    Yang Berbahagia Datuk Mohd Razif Abdul Kadir, Deputy Governor, Bank Negara Malaysia

•    Yang Berbahagia Dato’ Syed Moheeb Syed Kamarulzaman, Chairman, Malaysian Takaful  Association (MTA)

•    Delegates of International Conference of Takaful and Retakful  (ICTR)

•    Members of the Media and Honoured Guests, Ladies and Gentlemen



ASSALAMUALAIKUM WBT and Good Evening


1.    My wife and I thank Malaysian Takaful Association for inviting us to tonight’s first Malaysian Takaful Association Dinner (MTA).   It gives us both great pleasure to be here this evening. We are indeed honoured to be in the company of such distinguished personalities whom have been instrumental in establishing the Malaysian takaful industry just under three decades ago, members of the industry, regulators, scholars, consultants, and those sharing our deep interest in the development of takaful and Islamic finance from Malaysia and other parts of the world.
   
2.    A special welcome to those of you whom have traveled from around the region and beyond. I understand over 15 countries are represented here tonight. I also understand many of you are here attending the International Convention on Takaful and Retakaful Conference, which began earlier today. We are grateful for the hand of friendship and knowledge that you have extended to us. Thank you.

Ladies and gentlemen

3.    We owe much to YABhg Tun Mahathir Mohamed. In October, 1982, just a year coming into office as our fourth Prime Minister, a special task force was formed to explore the viability of an Islamic insurance company in Malaysia. YABhg Tun has been instrumental in ensuring the takaful industry received strong support from the Government and this support has remained to this day.

4.    YABhg Tun, we are gathered here tonight not only to celebrate the success of our Nation’s takaful industry but also to honour you, sir. Our thanks will never equal to the service that you have rendered us. May Allah SWT bless Tun and YABhg Tun Dr Siti Hasmah for here, now and hereafter, insyallah.

Ladies and gentlemen

5.    The pioneers of the Malaysian takaful industry gave us strong foundations for growth.  Bank Negara Malaysia has played a critical role in ensuring the necessary infrastructure is in place so that the takaful industry would have the most conducive environment to flourish. Tonight’s “Takaful Appreciation Award” to Bank Negara is recognition long overdue. Congratulations.

6.    I am also proud to be here to witness the giving of awards to the various takaful operators tonight. The awards are well deserved. My congratulations to tonight’s recipients.

Ladies and gentlemen

7.    The course of the global political-economic progress has taken a dramatic turn since the latest economic crisis began last year. The G8 and other OECD economies are no longer held as the sole arbiter of global affairs. With the continued economic growth of multi-lateral regional blocs, the voices of the developing and emerging countries are now holding strength, challenging supra-national institutions established since the conclusion of Wrold War II to undertake unprecedented reformations.  How the world is being run is changing.

8.    Parallel to this development, we witnessed global financial institutions having to close their doors or their balance sheets reduced and their scope of activities curtailed. The dust will not settle for quite number of years yet but this presents an enormous opportunity for us in Asia.

9.    The Islamic financial system has proven to be resilient and immune from the cancerous malignant credit products that were the root cause of this credit crisis. Islamic finance’s insistence in anchoring each and every transaction with real economy activities has brought stability to the entire Islamic finance system.

10.    The uncertainty in the leading financial capitals brings us a rare window of opportunity. As a nation that prides itself as the first amongst the leading equals in the field of Islamic finance, we must strive to position Islamic finance to a position that it deserves, as a financial system that ensures fairness and justice to the benefit of not only to the ummah but to the world at large.

Ladies and gentlemen

11.    It is estimated that global gross takaful contributions will reach up to USD8.0 billion by 2012. Malaysia alone has seen a compounded average growth rate (CAGR) of 39.0% between the years 2005 – 2007. Nonetheless, the present financial crisis has brought forth many concerns to financial institutions in every market and sector, including the major takaful operators across the globe.
 
12.    We are aware of the various concerns in our takaful industry. There are various valid operational, compliance and financial risks for us to assess and consider. Some of these issues are structural, others are not. The present crisis gives us an opportunity to take stock of our position. Let us not view these concerns as impediments. Let us address them. I assure you that this Government remains steadfast in its commitment to the takaful industry.

Ladies and gentlemen

13.    While we are rightly proud that Malaysian takaful industry accounts for almost a quarter of the world’s takaful contributions, we should not rest on our laurels. We are now seeing established conventional brand names taking up positions in the global takaful industry. They bring with them specialised technical skills in the areas of risk management, actuarial science, ICT, branding, cross expertise knowledge in their underwritten industries and in the asset, fund management and treasury operations. We must begin to build our expertise across the entire value proposition of the insurance business, benchmarked against world standards.

14.    As the conventional insurance industry, the primary income for a takaful operator is derived from the asset management side of the business, within prudential regulatory parameters. The premiums received merely act as a source of cash flow to consistently feed the pool of assets under management (AUM). Fund and asset management involves a different and an entirely separate set of skills from that of the insurance business. I urge the domestic takaful operators to further develop these specialised skills. The building of a sustainable world-class talent pool is an investment for the future. This is something any industry in the service sector, especially, cannot neglect.

Ladies and gentlemen

16.    The global takaful industry is now ready to take an upward flight. As we cast our eyes towards the high future, let us ask ourselves where is the strategic direction of the domestic takaful industry? Are we content to increase our penetration rate within our borders or do we build our capacity, either organically or through mergers and acquisitions or do we partner with some of the world’s biggest insurers?

15.    These questions are best left to the market. The global takaful landscape will without doubt change at an accelerated rate in the next five years. The growth potential is too irresistible for any serious player to ignore. I urge the Malaysian takaful industry to take meaningful and effective steps in ensuring this Nation’s position remains intact as a leading global takaful provider. Our leadership must be clear and unambiguous.

Ladies and gentlemen

16.    We had the vision to sow the seeds of this Nation’s takaful industry, let us now see our trees soar in fields near and far. Let us not lose our way. We are not poor in talent, nor are we in poverty with ideas. We are Malaysians and as one, insyaalah, with God’s grace, we can succeed.

Ladies and gentlemen, last but not least,

17.    I would like to congratulate the Malaysian Takaful Association for its efforts and initiatives in developing our takaful industry since its inception in 2002.

18.    I wish to congratulate the working committee team as well as others whom provided valuable time and support towards realizing this event.  I hope tonight’s Awards Dinner will be an annual fixture in our takaful industry’s diary.

19.    YABhg Tun, ladies and gentlemen, I will no longer delay your dinner. I wish you a pleasant evening. Thank you.

Wabilahi-taufik Walhidayah Wassalamualaikum Warramatullahi Wabarakatuh.