Challenges of developing a takāful retirement annuity plan in Malaysia

Soulahi, Younas (2017) Challenges of developing a takāful retirement annuity plan in Malaysia. Challenges of developing a takāful retirement annuity plan in Malaysia, 9 (1). pp. 95-99.

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Abstract

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withdrawn from the Malaysian annuity market a few years ago.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 �
sukūk market, the shortage of long-term �
sukūk,
longevity risk and risk-based capitalization. The research found that there is a need for a diversified portfolio
of securities instead of solely using �
sukūk 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.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Fakultas Syariah > Perbankan Syariah
Depositing User:	S1 SYARIAH IKHAC
Date Deposited:	20 Nov 2020 01:41
Last Modified:	20 Nov 2020 01:41
URI:	http://repository.ikhac.ac.id/id/eprint/729

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