Firms ex­pect win-win tie-up to con­trib­ute pos­i­tively in medium term

New Straits Times - - Business -


THE five-year ex­clu­sive col­lab­o­ra­tion be­tween Agrobank Bhd and Taka­ful Ikhlas Bhd (TIB) will en­able both com­pa­nies to fur­ther their own re­spec­tive ob­jec­tives.

Agrobank pres­i­dent and chief ex­ec­u­tive of­fi­cer (CEO) Datuk Wan Mohd Fadzmi Wan Oth­man said this col­lab­o­ra­tion would be a “win-win” for Agrobank and TIB, as he sought to en­large his bank’s fee-based in­come and TIB seek­ing to cap­ture the ru­ral mar­ket.

“We have al­ways been keen in de­vel­op­ing our ban­cas­sur­ance busi­ness and we be­lieve this ex­clu­sive part­ner­ship with TIB will help deepen this par­tic­u­lar seg­ment, which as of the end of last year con­trib­uted some RM40 mil­lion to our bot­tom line,” said Wan Mohd Fadzmi.

“Of course, if you com­pare that with com­mer­cial en­ti­ties, it is not a big num­ber. But for a agri­cul­ture-cen­tric de­vel­op­ment fi­nan­cial in­sti­tu­tion like us, with no tech­ni­cal ex­per­tise in taka­ful, it is sig­nif­i­cant. We are also ex­pect­ing this part­ner­ship to con­trib­ute pos­i­tively in the medium term.”

He said though Agrobank was keen to tap fur­ther into the fee­based busi­ness, which was less risky and al­most im­me­di­ately prof­itable.

“We are, of course, look­ing at other av­enues to en­large our fee­based in­come, but I would have to say that this col­lab­o­ra­tion with TIB, one of the coun­try’s most prom­i­nent taka­ful providers, is sig­nif­i­cant and prom­i­nent,” said Wan Mohd Fadzmi.

“This is not only be­cause of their tech­ni­cal know-how, but like us, they are also Is­lamic and this means we will have per­fect syn­ergy with each other.”

The mem­o­ran­dum of un­der­stand­ing signed by both en­ti­ties will see them work­ing to­gether in the ar­eas of per­sonal ac­ci­dent taka­ful, mort­gage taka­ful, group credit term taka­ful, group fam­ily taka­ful, fam­ily taka­ful plans for ed­u­ca­tion, re­tire­ment and med­i­cal, mo­tor taka­ful, fire taka­ful and other non-mo­tor taka­ful prod­ucts.

TIB pres­i­dent and CEO Datuk Ab Lat­iff Abu Bakar said he was tar­get­ing RM211 mil­lion in to­tal pre­mium con­tri­bu­tions across all seg­ments in the col­lab­o­ra­tion.

“We have seen a very healthy take-up rate of Agro Nu­rani of­fer­ing. To date, it has at­tracted more than 350 pol­i­cy­hold­ers, con­tribut­ing some RM28,000 to the com­pany since its soft launch on Jan­uary 14,” said Ab Lat­iff, not­ing that Agro Nu­rani was the coun­try’s first taka­ful plan for the dis­abled.

“This pol­icy is avail­able to any dis­abled per­son’s card­hold­ers and cover con­di­tions like men­tal ill­ness as well. Next poli­cies that we will roll out would be an ed­u­ca­tional plan some­time in the mid­dle of the year.”

By part­ner­ing with Agrobank, TIB will also be able to tap the ru­ral Malays, which makes the bulk of Agrobank’s clien­tele.

“We are still tar­get­ing the ur­ban de­mo­graphic, but we are now en­larg­ing our mar­ket by also go­ing into the out­skirts,” he said.

TIB has more than two mil­lion pol­i­cy­hold­ers as well as an es­ti­mated 5,000 reg­is­tered agents na­tion­wide.


Taka­ful Ikhlas Bhd pres­i­dent and CEO Datuk Ab Lat­iff Abu Bakar (left) and Agrobank pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Wan Mohd Fadzmi Wan Oth­man (sec­ond from left) at the sign­ing cer­e­mony in Kuala Lumpur yes­ter­day.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.