Takaful Industry Unites To Expand iTEKAD Protection Under Budget 2025

KUALA LUMPUR, Oct 14 (Bernama) -- Malaysia’s Takaful industry has united to provide iTEKAD protection to vulnerable communities, marking a significant milestone in the nation’s social finance journey and reinforcing its leadership in Islamic finance.

In a statement today, the Malaysian Takaful Association (MTA) said that the programme was launched by Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour at the Global Islamic Finance Forum (GIFF) 2025, with an allocation of RM5 million as a matching grant under Budget 2025.

MTA said the initiative further expands the iTEKAD umbrella programme, first introduced in 2020, to include a risk protection component that safeguards both lives and livelihoods.

“The iTEKAD Protection Programme represents a bold step towards delivering holistic and inclusive social finance solutions.

“By extending protection to microentrepreneurs, goods delivery personnel, and participants of Inisiatif Pendapatan Rakyat (IPR), the programme would strengthen the financial resilience of vulnerable communities to manage risks better and respond effectively to unforeseen challenges,” it added.

The MTA said that Prudential BSN Takaful Bhd, Etiqa Family Takaful Bhd, Takaful Ikhlas Family Bhd, and Great Eastern Takaful Bhd have formed the first wave of participating operators in piloting iTEKAD Protection initiatives that prioritise the wellness and financial resilience of vulnerable segments.

“The Takaful industry also leverages strategic collaborations with implementation partners to effectively roll out and scale the iTEKAD Protection programme within the broader ecosystem.

“By collaborating with banks, training providers, and state religious authorities, the initiative embodies a whole-of-ecosystem approach that drives unified efforts toward socio-economic empowerment,” it said.

MTA said wider participation from Takaful operators and implementation partners is encouraged to deepen iTEKAD’s impact and strengthen interlinkages across the financial landscape.

“Fully aligned with the Hijrah27 Transformation Plan, the initiative directly supports measurable outcomes such as closing the protection gap, increasing Takaful take-up among microentrepreneurs and gig workers, and advancing blended finance models for micro, small and medium enterprises.

“By focusing on these tangible results, iTEKAD Protection strengthens financial resilience, widens access to protection, and accelerates the growth of inclusive social finance in Malaysia,” said the association.

MTA chief executive officer Mohd Radzuan Mohamed added that this initiative reflects the Takaful industry’s purpose-driven mission, noting that with strong support from operators, the industry is collectively ensuring that protection is not a privilege but a right for all Malaysians.

-- BERNAMA