POSITIVE OUTLOOK FOR MALAYSIA’S INSURANCE SECTOR
[ Source: Bernama, 20 July 2012 ]
The outlook for the financial services industry, especially the insurance sector, is positive as Malaysia’s population is on the rise and disposable incomes are increasing which will result in more people able to afford financial services. According to Sabah Deputy Chief Minister, Dr Yee Moh Chai, this is evident from last year’s finance and insurance sector growth rate of 5.9% which was higher than the national gross domestic product of 5.1%. These figures can be attributed to the strong performance in bank lendings and the increase in premiums in the insurance sector. He said that there is not a doubt that the insurance industry is growing steadily and hopefully would increase its penetration rate especially in the general insurance sector. He added that while the insurance industry is very competitive with relatively low penetration, there is plenty of room for growth as the Sabah state economy entered a vital phase of development.