|
|
HSBC Holding is planning to make Malaysia a hub for the group's global "takaful" business worldwide.
|
CAIRO — International banking giant HSBC Holding
unit is planning to make Malaysia a hub for the group's global "takaful"
business worldwide, reported the New Straits Times on Monday, October
16.
"We are considering using our dedicated
takaful company here to branch out and go to other markets," said
Keith Driver, the chief executive officer of the HSBC Amanah Takaful
(M) Sdn Bhd.
Driver said the move will allow HSBC Amanah Takaful
to reach new customers from among the world's 1.6 billion Muslims.
Takaful (Islamic insurance) is based on mutual
cooperation in the sharing of risk and addresses key features
associated with conventional insurance that is incompatible with
Islamic Shari`ah.
The HSBC Amanah Takaful is expected to apply for an
international takaful operator license (ITO) and centralize its global
takaful activities in the Muslim country.
"We are evaluating this in line with the
information and regulations as they are developed and advised. We are
keen to explore ways to work within this initiative," Driver
added.
Last month, Bank Negara Malaysia issued guidelines
for financial institutions to offer Islamic transactions in foreign
currencies.
It followed a scheme of a 10-year tax exemption as
of 2007 for institutions offering products in foreign currency.
HSBC Amanah Takaful is a joint venture between HSBC
Insurance (Asia Pacific) Holdings Ltd, Jerneh Asia Bhd and the
Employees Provident Fund, Malaysia's biggest state pension fund.
Booming Market
HSBC Holdings said it expects the global takaful
market to grow fivefold to $14 billion (RM51.52 billion) by 2015.
"We have a competitive advantage here (in
Malaysia). We have a takaful company, favorable fiscal initiatives
that make it attractive commercially for basing here and the support
of a strong Islamic finance business which can help make sure
resources are available to make it happen," he said.
Driver said that HSBC Amanah Takaful "can
develop new products centrally and give them a home".
The Islamic banking industry, which began almost
three decades ago, has made substantial growth and attracted the
attention of investors and bankers across the world.
There are an estimated 300 Islamic banks and
financial institutions worldwide holding $300 billion in assets
predicted to grow to $1 trillion by 2013.
American International Group (AIG.N), the world's
largest insurer, said on Sunday, October 1, it will offer its first
insurance coverage complying with Islamic law, tapping a market that
could be worth $15 billion by 2015.
Europe's giants like Britain, Germany and the
Netherlands expanded over the past three years in producing banking
services and products aimed at the Muslim clients.
Japan is planning to introduce Shari`ah-compliant
dealings into its beefy banking system in a bid to attract lucrative
Middle Eastern oil money.
