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11 Jul | Thursday
Takaful Malaysia Suspends Foreign Property Foray Plans, Awaits IFSA Clarity

Syarikat Takaful Malaysia Bhd, the country's oldest Islamic insurer, has put all future investments on hold until it gets a clearer picture on the newly-enforced Islamic Financial Services Act (IFSA), its top executive said.

The takaful player had planned to make its first foray into the overseas property market last year and was vying for high yielding properties in London, the UK.

However, with news of sweeping regulatory changes expected to be introduced under the IFSA, Takaful Malaysia is temporarily suspending plans.

Under the IFSA, which came into force on July 1, 2013, takaful operators are required to relinquish their composite licence within a five-year period and conduct its life and general insurance businesses under separate units or subsidiaries.

The Act also requires takaful players to set up a financial holding company for purposes of regulation and supervision. All operators must submit an application to Bank Negara Malaysia to be approved as a financial holding company.

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