We’ve Got You Covered - Takaful Malaysia...SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD (Formerly known as Syarikat Takaful Malaysia Berhad) (131646-K) We’ve Got You CoveredYour Preferred

SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD(Formerly known as Syarikat Takaful Malaysia Berhad)

(131646-K)

We’ve Got You CoveredYour Preferred Choice for Insurance

2018ANNUAL REPORT

CONTENTS Strategic Review

About Us - Vision, Mission & Corporate Values ............. 002

Group Structure & Corporate Information .... 004 Five-Year Financial Highlights ......................... 006 Management Discussion & Analysis ............. 008 Sustainability Report ......................................... 018

Profiles ProfileofBoardofDirectors ............................ 044 ProfileofShariahAdvisoryBody .................... 047 ProfileofSeniorManagement ........................ 050

Corporate Governance Corporate Governance Overview

Statement ............................................................ 053 AuditCommitteeReport .................................. 067 StatementonRiskManagementand

Internal Control ................................................... 072 AdditionalComplianceInformation ............... 077

Financial Statements Directors’ Report ................................................ 078 ShariahAdvisoryBody’sReport ..................... 083 Statements of Financial Position ................... 085 StatementsofProfitorLossandOther

Comprehensive Income ................................... 087 Statements of Changes in Equity ................... 092 Statements of Cash Flows .............................. 095 Notes to the Financial Statements ................ 097 Statement by Directors ..................................... 324 Statutory Declaration ........................................ 325 IndependentAuditors’Report ......................... 326

Other Information Notice of 34th Annual General Meeting ........ 331 Statement Accompanying Notice of

34th Annual General Meeting .......................... 333 ShareholdingStatistics..................................... 334 Particulars of Properties .................................. 338 BranchNetwork&Subsidiary

Companies .......................................................... 344 Form of Proxy

https://www.takaful-malaysia.com.my/corporate/investor/Pages/financialreports.aspx

https://www.takaful-malaysia.com.my/corporate/investor/Pages/financialreports.aspx

002 SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHADANNUAL REPORT • 2018

Strategic ReviewProfiles

Corporate Governance

Financial Statements

Other Inform

ation

About Us

SyarikatTakafulMalaysiaBerhad(“STMB”)wasincorporatedon29November1984.TheCompanyhasapaidupcapitalofRM185.4millionwithtotalassetsofRM8.9billionatGrouplevelasat31December2018.InaccordancewiththeIslamicFinancialServicesAct2013(“IFSA”),STMBseparateditscompositelicenceintotwo(2)licencedentities.STMB,nowknownasSyarikatTakafulMalaysiaKeluargaBerhad(“STMKB”)tomanagetheFamilyTakafulbusinesswhilstSyarikatTakafulMalaysiaAmBerhad(“STMAB”)tomanagetheGeneralTakafulbusiness.STMKBistheholdingcompanyandowns100%ofSTMAB.BothSTMKBandSTMABoperatethroughacombinednetworkofservicecentresacross25locationsnationwide.

Our

Our

VISION

MISSION

We want to beTHE PREFERRED CHOICE FOR INSURANCE

Weaimtoexceedcustomersexpectationsthrough:

• Operational Excellence• Technology Driven Capabilities• Product Innovation• Performance Oriented Culture

Whilstdeliveringsuperiorshareholdervalue.

003SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHADANNUAL REPORT • 2018

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About Us

Our

CORPORATE VALUES

The defining pillars of our Brand are the values that we continuously strive to manifest through our work.

InspiringOur perseverance to our continued development of our industry, bringing it to the next level.

HumanitarianOur promise to the community is the pledge of our compassion and care.

ProfessionalOur pledge to achieve the standards and promises that we deliver to our customers.

IntegrityOur commitment in values of personal integrity and to build trust.

TeamworkOur dedication to teamwork is a testament of our unity and trust towards each other.





Other Inform

ation

Group Structure

Corporate Information

SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD (131646-K)

Subsidiary Companies

100.00% 56.00% 42.73%

57.24%

SYARIKAT TAKAFUL MALAYSIAAM BERHAD

(1246486-D)

BOARDOFDIRECTORSChairmanTAN SRI DATO’ AHMAD FUZI HAJI ABDUL RAZAKIndependentNon-ExecutiveDirector

MembersDATO’ OTHMAN ABDULLAHSeniorIndependentNon-ExecutiveDirectorMAHADZIR AZIZANNon-IndependentNon-ExecutiveDirectorZAKARIA ISMAILIndependentNon-ExecutiveDirectorMOHD TARMIDZI AHMAD NORDINNon-IndependentNon-ExecutiveDirector (Ceasedofficeon1April2019)DATIN SRI AZLIN ARSHADIndependentNon-ExecutiveDirectorDATUK ROZAIDA OMARNon-IndependentNon-ExecutiveDirector(Ceasedofficeon15May2018)

SecretaryMOHAMAD ASRI YUSOFF(MIA14171)

SHARIAHADVISORYBODYChairmanPROFESSOR DR. MUHAMAD RAHIMI OSMAN

MembersDR. AHMAD SHAHBARI @ SOBRI SALAMON (Ceasedofficeon1April2019)DATO’ WAN MOHAMAD DATO’ SHEIKH ABDUL AZIZ (Ceasedofficeon1April2019)DR. AHMAD SUFIAN CHE ABDULLAHDR. MARHANUM CHE MOHD SALLEHMEGAT HIZAINI HASSANDR. NIK ABDUL RAHIM NIK ABDUL GHANI (Appointedon1April2019)

SecretaryMOHAMAD ASRI YUSOFF(MIA14171)


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Corporate Information

AUDIT COMMITTEEDATO’ OTHMAN ABDULLAHChairman

MAHADZIR AZIZAN

ZAKARIA ISMAIL

NOMINATION &REMUNERATIONCOMMITTEEDATO’ OTHMAN ABDULLAHChairman

MAHADZIR AZIZAN

ZAKARIA ISMAIL

BOARDRISKCOMMITTEEZAKARIA ISMAILChairman

MOHD TARMIDZI AHMAD NORDIN (Ceasedofficeon1April2019)

DATIN SRI AZLIN ARSHAD

INVESTMENT COMMITTEEDATIN SRI AZLIN ARSHADChairman

MAHADZIR AZIZAN

AZIAN KASSIM

SENIOR MANAGEMENTDATO’ SRI MOHAMED HASSAN KAMILGroupChiefExecutiveOfficer

LEEM WHY CHONGDeputyChiefExecutiveOfficer

MOHAMED SABRI RAMLIChiefExecutiveOfficer,STMAB

AZIAN KASSIMChiefInvestmentOfficer

JULIANA LO BENG LIEWGeneral Manager, Corporate Finance & Strategy

SHUHAIBAHTULASLAMIAHHURMUZANGeneral Manager, Human Resource

MOHAMAD ASRI YUSOFFGeneral Manager, Corporate Affairs /Company Secretary

PATRICK WONG CHANG YANGChiefInformationOfficer

AUDITORSKPMGDesaMegatPLT(LLP0010082-LCA&AF0759)CharteredAccountantsLevel10,KPMGTower8,FirstAvenue,BandarUtama47800PetalingJayaSelangor Darul Ehsan

Tel :+603-77213388Fax :+603-77213399

REGISTERED OFFICETingkat26,BlokAnnexMenara Takaful MalaysiaNo.4,JalanSultanSulaiman50000KualaLumpur

Tel :+603-22681984Fax :+603-22742864Email : [email protected] : www.takaful-malaysia.com.my

REGISTRARBoardroomShareRegistrarsSdnBhd(378993-D)(Formerly known as Symphony Share Registrars Sdn Bhd)Level6,SymphonyHousePusatDaganganDana1JalanPJU1A/46,47301PetalingJayaSelangor Darul Ehsan

Tel :+603-78490777Fax :+603-78418151/52Email:[email protected]:www.boardroomlimited.com

PLACEOF INCORPORATIONANDDOMICILEMalaysia

STOCKEXCHANGELISTINGMainMarketofBursaMalaysiaSecuritiesBerhadon30July1996

StockCode:6139

Stock Name: TAKAFUL





Other Inform

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Five-Year Financial Highlights

Group

Group

Group

Company

Company

Company

Total Family TakafulGross Contribution

Total General TakafulGross Contribution

Total Assets

GROUP(RM’000)

GROUP(RM’000)

GROUP(RM’000)

COMPANY(RM’000)

COMPANY(RM’000)

COMPANY(RM’000)

1,608,157

709,286

8,931,576

1,491,573

313,928*

7,117,888* Jan - May 2018 only


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Five-Year Financial Highlights

Group

Group

Group

Company

Company

Group

ProfitBeforeTaxationAfter Zakat

Return onEquity

DividendPaid/(NetofTaxation)

Net AssetsPer Share

EarningsPer Share

GROUP(RM’000)

COMPANY(RM’000)

GROUP(%)

GROUP(RM’000)

GROUP(RM)

GROUP(SEN)

335,983

256,841

32.7 123,472

1.19 35.79* adjusted for effect of share split.





Other Inform

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Management Discussion & Analysis

We have registered the second

consecutive year of record

net profits and double-digit

growth, outpacing the industry

as a whole, all on the back of

our solid business expansion

strategy, operational efficiency

and our underlying financial

strength. These attributes have

resulted in the achievement of

the Company’s key business

objectiveindeliveringsustainable

returnstoourshareholders.

Dear Shareholders,

The world economy started on a positive note in 2018, intandem with the modest pickup in global manufacturingand trade through the preceding year. The steady expansioncontinued, although stronger economic activities that wereunevenly distributed across countries and regions regaineda healthy growth rate. The commodity index rose on higherenergypricesandfinancialconditionsmarginallytightened,aswe experienced substantial variances that surfaced betweentheadvancedandemergingmarketeconomies. In emerging markets and developing economies, gradualimprovementsofactivitiesweresustained,particularlyamongstenergyexportersthatwereliftedbyhigheroilprices.Despitethe

continuedincreaseinthefederalfundsrateintheUnitedStates,the emerging markets and developing economies remainedsupportiveof theadvancedeconomieswitha rise in inflationrecorded.

Globalgrowthisforecastedat3.7%for2019,wellbelowinitialprojection, and is further set to condense over the mediumterm.Asmonetarypolicystabilizes,globalfinancialconditionsareanticipated tocompressand trademeasures toweighonactivity moving forward. The inconsistent pace of the globaleconomic recovery has raised concerns on achieving theprogressoftheeconomic,socialandenvironmentaldimensionsof the Sustainable Development Goals in several regions.

On the local market scenario, Malaysia’s economic growth remained resilient, moderated to 4.7% in 2018 compared to5.9%in2017.This is in linewiththeWorldBank inDecember2018 which forecasted Malaysia’s 2018 GDP to expand by4.7%after factoring in rigorous cuts inGovernment spendingas well as a slowdown in private and public investment andotherexternalfactors.Despitethemoderationintheeconomicgrowth, Malaysia’s economic fundamentals remained strongdue to its diversified economy. Looking ahead, the WorldBankhas forecastedMalaysia’seconomicgrowth tocontinuegrowingsteadilyatamoderatepaceof4.7%in2019.

The Islamic insurance industry inparticular remainedhealthy,bolstered by a strong capital position and sound profitability.Malaysia’s takaful industry growth continued outpacing theconventional counterparts and sustained its leading positionintheglobaltakafulindustry.ThetakafulsegmentisexpectedtobenefitfromtheGovernment’spushforaffordableinsuranceandisprojectedtoachieveahighermarketpenetrationby2020.

The Family Takaful operators registered higher contributiongrowth in new business driven by the rise in credit-relatedproducts on the back of higher disbursement of mortgagefinancing and continued business growth in the investment-linked portfolio. In 2018, the Family Takaful industry's newbusinessgrewby13%comparedto10%ofthesameperiodinthe previous year.

During the year under review, the General Takaful industry'sgross contribution income grew by 9%, surpassing theconventional insurance counterparts, which was contributed byhighergrowthofmotorandfiretakafulproducts.


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ADVANCING STRATEGIES TO COMPETE IN THE CUTTING-EDGE ECONOMY

Despitepersistentheadwindsfacingtheinsuranceindustryasawhole,theinfluenceofmacroeconomicdevelopmentsaswellasaconstantincreaseindemandforbothFamilyTakafulandGeneralTakafulofferings,benefitedSyarikatTakafulMalaysiaKeluarga Berhad (“STMKB” or “the Company”) (formerlyknownasSyarikatTakafulMalaysiaBerhad)anditssubsidiarycompanies (“STMKBGroup”or “theGroup”)witha consistentgrowth outcome and resilient earnings. Our solid businessexpansion strategy, operational efficiency and underlyingfinancialstrengthsupportedtheGroup’skeybusinessobjectiveto deliver superior and reliable returns, thereby increasingshareholdervalue.

Our sterling performance was largely attributable to higher earnings generated from both Family and General Takafulbusinesses, a testimony to the effective execution of our strategy, and the strong foundation we have built since thestartofourTransformationJourneyin2009.Drivenbyasolidand growing bancatakaful reach, coupled with expandingdistribution channels and ongoing digital initiatives, STMKBGroup registered consecutive years of double-digit growth.Having invested resources in digitalizing the Group, we haveseenvisibleresultsinsustainingourpositionasamarketleaderin the Family Takaful business whilst intensifying the market share of our General Takaful arm.

Advancing beyond traditional customer interfaces byembracing digital through the integration of best-in-breedtechnologyplatformsandimplementationof innovativedigitalmarketing strategy via digital and socialmedia channels hasenabled STMKB Group to be nimbler and more fintech-like.This and other across-the-board strategies have provided theGroup a competitive advantage to stay ahead of the game,therebysurpassingtheindustryasawhole.Themanagementfocusedpersistentlyonthefollowingbusinessobjectivesthatservedas theunderlying foundation toourbusinessplanningingeneratingsignificantpositiveearningswhilstincreasingtheGroup’s growth curve.

u Sustaining solid financial position whilst increasingprofitabilitytodeliversuperiorshareholdervalue

u Embracingdigitalandacross-the-boardstrategiesalongwithimprovingoperationalefficiency

u Diversifying distribution channels and strengtheningstrategic partnerships

u Embeddingcustomercentricity inmeetingexpectationsof the consumers

u Maintainingahighdegreeoffinancialdiscipline

2018 DEFINING MOMENTS

Registered record profit exceeding

RM250 million with double-digit growth of 43%, outpacing

the industry.

Advanced progress in driving digital

agenda and successfully

launched a new tranche of innovative online solutions via

Click for Cover Online Sales Portal.

Placed in the second position for the

‘Highest Growth in Profit After Tax Over Three Years’ at The Edge Billion Ringgit

Club ("BRC") Corporate Awards 2018 under

the financial services below RM10 billion

market capitalisation category.

Awarded the 2018 PIKOM PLC Annual Leadership Award

in conjunction with the 3rd Annual

Leadership Award of the National

ICT Association of Malaysia (“PIKOM”).

Voted as Malaysia’s top choice for

motor takaful and won the iBanding’s

Motor Takaful Award 2017/18 for the second

consecutive time.

Selected as the Top Three Best

Employer Brand of the Graduates’ Choice Award 2018 under the

insurance industry category.

Ranked the second place under the

‘Highest Return on Equity Over Three Years’ category at The Edge Billion

Ringgit Club ("BRC") Corporate Awards

2018 for the financial services below

RM10 billion market capitalisation sector.

Completed the conversion of

composite licence to single licences for Family Takaful

and General Takaful businesses.

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Other Inform

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SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHADANNUAL REPORT • 2018

SUSTAINING PERFORMANCE IN DELIVERING RECORD EARNINGS AND RESILIENT RETURNS

In the face of a competitive market environment, Malaysia’s Islamic insurance industry continued to record upbeat growth in new business and outperformed the conventional insurance sector for both Family and General Takaful business segments. STMKB Group registered an overall growth rate of 32% in new business during the financial year under review, surpassing the industry all together whilst the Group’s gross earned contributions increased by 26% in both the Family and General Takaful portfolios.

Pioneering the country’s Islamic insurance industry for over three decades, STMKB Group consistently clinched its leading position in the Family Takaful business. Our outstanding performance was mainly attributable to our extensive strategic partnerships in bancatakaful business, effective network in reaching out to civil servants for mortgage and fire takaful products, stable demand for employee benefit solutions, increased online sales and strong business growth in motor and other non-motor General Takaful business.

We continued to achieve high business growth in credit-related portfolio, steered by the sturdy growth of the local Islamic banking industry that resulted in higher adoption for takaful products. We continued to gain the upper hand over other competitors in the Group Family Takaful business and maintained as the market leader. The Group further penetrated the Employee Benefits (“EB”) segment by introducing cutting-edge value-added services and implementing sound underwriting practices and preservation of value.

Our General Takaful business witnessed a quantum leap, amplified at a faster pace compared to the industry peers, including the conventional general insurance counterparts. Maintaining our position as the top two leading General Takaful Operators with total gross contributions of RM709 million during the year under review, we continued to achieve high growth rate of 21%.

The key growth drivers that contributed towards the expansion of our General Takaful business were attributed mainly due to the growing acceptance of our fire and motor product lines, apart from leveraging on our digital platform that continued to provide support for customer acquisition. Additionally, we focused on diversifying our distribution channels as well as enhancing our digital ecosystem to improve customer experience and the growth rate of our General Takaful business.

Our successful efforts in achieving record profit result during the year under review resulted in an impressive growth of 43% in profit, exceeding RM250 million on the back of sterling sales

performance with a combined sales growth of 26% for both Family and General Takaful businesses. The Group’s double figures top and bottom line growth clearly signified our strength in the four core areas of operational excellence, technology driven capabilities, product innovation and cost competitiveness as well as performance-oriented culture.

DELIVERING STRONG FINANCIAL PERFORMANCE

Group Performance

The Group’s operating revenue for the year under review continued its growth by 23% to RM2.64 billion as compared to RM2.14 billion in 2017. The profit before taxation and zakat (PBTZ) increased by 33% to RM337.0 million from RM253.7 million in 2017. Correspondingly, the profit after tax and zakat (PATZ) rose by 43% to RM292.6 million, up from RM205.1 million in the previous financial year.

The growth in both revenue and profit results were mainly driven by higher sales generated by the Family and General Takaful businesses and higher net Wakalah fee income arising from our strong business growth.

The Group continued to sustain the strong financial performance through its digital transformation journey and operational excellence, expansion of the distribution channels along with the timely introduction of new and innovative takaful solutions and services. This helped to further penetrate the market and strengthen our position within the industry, across both the conventional and takaful markets.

Company Performance

The Company’s operating revenue rose 5% to RM2.09 billion, up from RM1.99 billion in the previous financial year. The total gross contribution recorded an increase of 6% to RM1.81 billion compared to RM1.70 billion in 2017. The increase was mainly attributable to higher sales generated by the Family Takaful businesses.

On a separate note, the Company recorded PBTZ of RM257.4 million, an increase by 1% as compared to RM255.5 million in the same period last year. The Company’s PATZ witnessed an increase of 11% to RM230.1 million from RM207.7 million in the previous financial year. The increase in profit was mainly attributable to the increase in the net wakalah fee income.

Review of Subsidiaries

Pursuant to the conversion of our composite license to single licences and splitting of the Company into two entities to manage the operations of its Family Takaful and General


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Takaful businesses separately effective 1 June 2018, theMinistryofFinanceandBankNegaraMalaysiahavegrantedaGeneral Takaful business licence to a new company which is awholly-ownedsubsidiaryunderthenameofSyarikatTakafulMalaysia Am Berhad (“STMAB”). This conversion exercise isin accordance to the legislative requirements of the IslamicFinancialServicesAct2013(“IFSA”).

FormerlyknownasSyarikatTakafulMalaysiaBerhad(“STMB”),the Company is now known as Syarikat Takaful Malaysia Keluarga Berhad (“STMKB”) to manage the Family TakafulbusinessandSTMABtomanagetheGeneralTakafulbusiness.The conversion of our composite licence to single licences clearly signified the key objective of our strategic move tomaintain the current lines of our portfolios whilst facilitating the expansion of our businesses in the long term.

Fortheseven-monthperiodfrom1June2018to31December2018, STMAB recorded the operating revenue of RM417.6million, PBTZ of RM71.6million andPATZ of RM53.6million.Despite the transfer of business toSTMABasa result of thelicence split, our General Takaful business will continue to upholditsestablishedbrandnameofTakafulMalaysia.

Our Indonesian subsidiaries, namely PT Asuransi TakafulKeluarga (ATK) and PT Syarikat Takaful Indonesia (STI)continuedtobeimpededbythe‘windowconcept’ofpromotingIslamic products, particularly by the domestic conventionalinsurance players.

REVIEW OF THE STATEMENT OF FINANCIAL POSITION

Shareholders’ Equity

Shareholders’ equity increased by RM178.7 million toRM1,012.2millionasat31December2018,netofdeclarationofdividendsofRM123.6millionduringthecurrentfinancialyear.ThisismainlyattributedtotheincreaseindistributableretainedearningsofRM159.0million.

Total Assets and Total Liabilities

Asat 31December 2018, total assets increasedbyRM737.0million toRM8.93billionascompared toRM8.19billionasat31 December 2017, mainly attributable to the growth in theinvestmentassetsandcashaswellascashequivalents.

In comparison to the previous year, the value of investment assetsincreasedfromRM4.86billionasat31December2017toRM5.40billionasat31December2018,mainlyattributableto the increase in investment in Islamic debt securities andMalaysian Government Islamic papers with no material change in the overall asset allocation.

Cash and cash equivalents increased by RM84.6 million toRM1.00 billion as at 31 December 2018, mainly attributableto higher placement in fixed and call deposit at licencedinstitutions.

The total liabilities increased by RM558.3 million to RM7.92billionascomparedtoRM7.36billionasat31December2017,mainly attributable to the increase in takaful contract liabilities byRM418.1million.The increase in takafulcontract liabilitiesfromRM6.71billionasat31December2017toRM7.13billionas at 31 December 2018 was in line with the Company’sbusiness growth.

Capital Expenditures

Asat31December2018,weincurredRM14.4millionofcapitalexpenditures,mainlyforthepurchaseofsoftwareandcomputerequipment. This is in line with the Group’s digital strategy inprovidingaseamlesscustomerexperience.

MAINTAINING SOUND AND ROBUST BUSINESS PORTFOLIOS

Malaysia's takaful growth remained commendable outpacingthe conventional insurance sector, attributable to Government efforts in increasing the penetration rate and reducing theprotection gap. In the face of the domestic market volatility,the takaful industry continued to evolve, defining a long-termsustainable growth.

Aimed at generating publicity as well as activities to raiseawareness of takaful amongst the consumers, the Malaysian


myTakaful Customer

myTakaful Customer

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Takaful Association (“MTA”) launched ‘Race for Cover’, anindustryjointeffortforhealthycompetitionamongstthetakafuloperators. This awareness campaign was mainly initiated toincrease the penetration rate of the Family Takaful business, in tandemwiththeGovernment’songoingeffortsinreducingthecountry’s protection gap.

Insupportoftheindustrymove,theGroupintroducedadirectdistribution termplanwithout intermediaries,TakafulmyTerm to provide affordable protection to the public under theliberalization of Life and Family Takafulmarket. This productoffered financial protection against unforeseen events withflexibletermcoveragetosuit thefinancialcircumstancesandneedsofindividualcustomers.

Towards achieving a higher insurance penetration rate, BankNegara Malaysia (“BNM”) further emphasized on the directchanneldistributionviatheenforcementofthe‘LifeInsuranceandFamilyTakafulFramework’(“LIFEFramework”).Inaddition,a ‘Balanced Scorecard’ (“BSC”) was also implemented inJanuary2018toensureintermediaryremunerationislinkedtoKPIsbasedonseveralkeyfactorsincludingproductivity,qualityofbusiness,professionalismandservices.

business. We actively carried out joint promotions, includingface-to-face marketing with our bank partners to cross-sell our takaful solutions to their existing clientele.

Onthemotortakafulsegment,thephasedMotorDetarifficationresultedintheindustryadoptingagradualpricingadjustmentwithinthegeneralrangeofa10%deviationfromtheprevioustariff rate as permitted by BNM to ensure an orderly marketdevelopment. STMKB Group via its General Takaful armstayed the course in improving the service quality renderedand customer experience as part of its business strategy togrow themotor takaful business.We achieved an impressivegrowthof27% inourmotor takafulportfolio.Thecommercialfiretakafulincontrast,facedanintensecompetitionmainlyviaminorproductenhancements,withpricingmarkdownupto30%asallowedunderthephasedliberalisationofFireTariff. The temporary suspension of mortgage takaful protection distribution throughagency forceandother intermediariesbyLembaga Pembiayaan Perumahan Sektor Awam (“LPPSA”)from April 2017 until mid of 2018 caused a decline to theGroup’smarketshareofthebusinessportfoliointhefirsthalfof2018.WeeventuallyregainedthebusinessgrowthmomentumandsustainedourtopmarketpositioninthesecondhalfoftheyearfollowingthereauthorizationgrantedbyLPPSAfortakafuloperators to continue marketing mortgage takaful protection to Governmentservantsviaqualifiedfinancingexecutives.

On the back of escalatingmedical inflation and price war oftheemployeebenefitssegmentwithintheindustry,ourFamilyTakaful business experienced withdrawal of some accountstothecompetitors.However,wemaintainedadoptingprudentunderwritingphilosophyforprofitablegrowthtobettermanagethe risk of highmedical inflation and inadequate pricing.WeretainedclientswhovaluedourprofessionaladviceinmanagingtheirEBprogramsinacost-effectiveway.

In fortifying our market share by delivering differentiatedexperienceofcustomizedservicestoourcorporateclients,weupgradedourmedical cost andutilisation (“C&U”) dashboard,Takaful myClickC&U.ThisC&Udashboardservedasanonlinefinancial analysis tool with a new platform and enhancedfeatures to better assist our corporate customers in examining andtrackingtheircostandutilizationofmedicalbenefits.

Turning to theGeneral Takaful business, the recruitment andretention of the non-motor corporate agency force remaineda challenge for the Group’s General Takaful arm. In order toovercome these circumstances, STMKB Group rolled outvarious initiatives some of which were providing supportfor corporate agents to obtain their licences and offeringcompetitiveincentiveprogramstoenticeperformingandgoodquality corporate agents.


Taking advantage of BNM’s initiative in fostering directdistributionchannel,STMKBGroupofficiallylauncheditsOnlineSalesPortal(“OSP”),ClickforCoveraspartoftheGroup’sholisticdigitalstrategytodistributeitsinnovativeonlinesolutions.WeenteredintostrategicpartnershipswithglobalITsolutionsandinsurance distribution and consultancy companies with theaimtoincreasetheexposureandvisibilityofourOSPviasocialmediaandmobileplatforms.

The Group continued leveraging on its established strategicbancatakaful partnerships with major Islamic banks in Malaysia to sustain its leading market position via the expansion ofour Family Takaful portfolio, deriving from the credit-related

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EMBRACING TECHNOLOGY-DRIVEN DISRUPTIONS TO STAY AHEAD OF THE CURVE

The insurance and takaful industry have become a hotbedof digital innovation, powered by FinTech investments andInsurTech start-ups not only to optimize performance, driveefficiencybutalsotoenhancethequality.

Asdigitalisationwidelyinfiltratedtheindustry,westrategicallytransformedourbusinessmodelbyintegratingtransformativetechnologiesintoouroperationsaspartofourdigitalstrategyto expand our market share. The Group upgraded its datacentreinfrastructure,enablingtheGrouptostreamlineitsdigitalcapabilitiesinprovidingaconduciveIToperatingenvironmentto support its growing business.

Ensuring high availability and convenience to our onlinecustomers,weimplementedasecondpaymentgatewayofourOSPClickforCover.Thisimplementationservedasadefensivemeasure,allowingtheGrouptosecurelyvaultitscustomerdatain the event the primary gateway underperforms or is downentirely.

In order to better manage our investment operations, theGroupmigratedtoanewinvestmentsystemthatprovidedanefficientportfoliomanagementsuiteofdataadministration.Inaddition,theGroupalsoperformedsystemintegrationwithitskeybusinesspartnersfornewbusinessaswellasthehandlingof claims.

Realizingtheimportanceofkeepingourcoresystemsupdatedisparamounttotheongoingoperationaleffectivenessandtwoof theGroup’scoresystemplatforms,specifically theGeneralandGroupsystemswereupgradedinstages.TransformingthebedrockofourITfootprinttoachievebetteragilityandflexibilitynotonlyhelpedus inmeetingourbusiness requirements,butalsoensuredthatourdataassetsareproactivelyandefficientlymanagedthroughouttheGroup.

The consumers in today's world are constantly on themoveand mobile application platforms are significantly playing avital role in business. Relying on the convenience of access on-demand information the Group successfully launched amobileapplication for thecorporateclientsof itsEBscheme.Theapplicationboastsofahighspeeddataaccesstocheckforinformationattheirfingertips.

AMPLIFYING OUR TRANCHE OF INNOVATIVE TAKAFUL SOLUTIONS

STMKB Group via its product innovation strategy expandedtheGroup’sportfolioofproductmixbyintroducingnewonlinetakafulsolutionsinadditiontoitsexistingtrancheofinnovativeonline product offerings. We recognized the importance tostay in touchwith thechangingneedsof theconsumersandto takeadvantageofnewcustomersegmentswhilstmeeting

theprotectionrequirementsofourexistingcustomerstodelivergrowth for the Group.

Through itsOSPClick forCover, theGroup launched the firstfullyunderwrittenonlinemedicalplan inAsia,TakafulmyClick MediCare that provided protection against the risingmedicalcosts.Thisproductcanbeconvenientlysubscribedonlinewithareal-timeautomatedmedicalunderwritingassessmentviaanintegrated medical auto underwriting engine which providescustomers with an instant online offer that matches their underwritingriskassessmenthassle-free.

Withthegrowingawarenessandincreaseindemandfortravelprotection products, we introduced an affordable all-in-oneonline Travel Personal Accident (PA) plan, Takaful myClick Travel PA that provided comprehensive protection againstinjuriesordeath, travel inconveniencesandmedicalexpenseswhenabroad.The launchof thisproductclearly reflectedourcustomer-centricmindset to provide smarter travel insuranceoptions.Besidesthetravelrelatedbenefits,ourcustomersareofferedhighqualitymedicalandpersonalaccidentbenefitstoo.Our online Travel PA enables the customers to select the most suitable package plan available to meet their requirements.

As part of the Group’s digital strategy in spearheadingnew innovations in the industry, STMKB Group launched aDigitally-AssistedMedicationDelivery Programme. Embarkingon a tripartite partnership with a leading technology andhealthcare services company and an information technologyservice provider – a one-stop healthcare mobile applicationwas launched. This on-demand mobile app offered aninnovative solution for the customers to conveniently obtain theirmedicationswith justa fewclicksasavalueadd to theprotection plan that we provided. This programme not onlyprovidedconvenient,safeandsecuremodeofcommunicationbetweenourcustomersandthethirdparties,butalsoimprovedtheefficiencyofmedicalinsuranceclaims.

PRESERVING OUR INVESTMENT PERFORMANCE

TheMalaysianmarketin2018remainedchallenging,inlinewiththeprolongedepisodeofoveralllacklustreglobalinvestment.Inspiteoftheunderperformanceofthedomesticandglobalequitymarkets, the overall impact on STMKB Group’s investmentperformancewaseffectivelycushionedbytheimplementationofourdefensiveassetallocationstrategy.Wefocusedonfixedincome asset classes that provided a stable and predictablerecurringincomesuchasSukuk,structureddepositsapartfromholdingmoreontocash.

Corresponding to our strategic asset allocation, our equityexposure remained at a low level throughout the year underreview. Whilst there were some weaknesses in equity portfolio performancesasaresultofthevolatilemarketconditions,wetactically supported the fragility through theperformancesofother asset classes.


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In the matter of Equity stock selection, STMKB Group strategically focused on selected stocks that delivered stableearnings growth and decent dividend yields. The Groupimplemented prudent investing strategy taking into accountthe challenging domestic environment arising from transitionin Government and slowdown in GDP growth to ensure ourportfolios remain resilient and continue to provide a fairreturnon investment vis-à-vis theprevailingmarket risks andperformances.

On this note, we diligently adopted the sectoral balanceapproachfocusingonresilientsectorsparticularlyutilitiesandhealthcare aswell as export oriented sectors like technology,rubber gloves, chemicals andoil and gas to protect from theuncertaindomesticpolicies.

Given the economic uncertainty, the Group’s investment arm experienced challenges from both local and global keyrisk factors. The inconstancies resulting from the revision of Government policies apart from the cancellation and budget-cutting of mega infrastructure projects as well as lacklustre corporateearningstrendshavebroughtforwardmarketprice/earnings valuation close to its mean. At global level, tradetensions between the United States and its trading partnersconstantly simmered whilst interest rate hike in the USpressurizedtheRinggitmovementandresultedinselldownofSukuk market.

InconsultationwiththeBoardInvestmentCommittee,STMKBGroup continued adopting prudent and vigilant investmentstrategiestomanagerisksandreturnsresourcefullyinadvanceoftheongoinguncertaintiesinthefinancialmarket.TheGroupangleditsstrategicassetallocationtowardsachievingthelong-term return while managing its investment portfolios. In pursuit of delivering operational excellences consistently, the Grouphas further enhanced its infrastructure by investing in a newinvestment system to support the investment management activities for the Group as well as to ensure a seamless transition of our General Takaful business to our subsidiarycompany,STMAB.

UPHOLDING SUPERIOR SHAREHOLDER VALUE

Delivering sustainable value to our shareholders throughsteady, high-quality earnings and resilient returns is of primeimportancetous,intandemwiththeCompany’sabilitytogrowsales, earnings and cash flowduring the financial year underreview.

In 2018 we continued to maintain long-term shareholdervalue by generating a healthy return on invested capitaland making prudent value-driven investments via strategicoperationalandmarketdecisions.Inmeetingtheexpectationsof our shareholders, we registered an impressive increase inprofitabilitytodeliversustainablefinancialperformance.

In view of our excellent performance during the year underreview, theBoardofDirectorsdeclaredon11December2018

an interim single tier dividend of 15.0 sen per ordinary shareamounting to RM123,632,726 in respect of the financial yearended31December2018whichwaspaidon11January2019.

This translated into a dividend yield of 4% based on theCompany’s share closing market price of RM3.80 as at 31December2018.Theinterimdividenddeclaredinrespectofthefinancial year ended 31December 2018, represents a payoutratioofapproximately42%ofthenetprofitsgeneratedfortheyearended31December2018.

KEEPING THE TAKAFUL MALAYSIA FLAG FLYING

Being conspicuous in today’s competitive market is crucialto stay aheadof the curve.Beyondour digital andmarketingstrategies,goodbrandingalsoplayedavitalrolethatnotonlyincreased the value of our company, but also helped us ingenerating new customers.

Weintegratedourbrandstrategyateverytouchpointwithourstakeholders. This has enabled us to build trust and fosterloyalty amongst our customers to drive sustainable businessgrowth,incrementalsalesandmorecost-effectivecampaigns.

STMKB Group continued spearheading its competitiveadvantageasthepreferredchoiceforinsuranceandaleadingmarketplayerintheindustrythroughongoingimplementationoftheGroup’sinnovativedigitalstrategycoupledwithaggressivemarketingandstrategicadvertisinginitiatives.Duringtheyearunder review, the Group rewarded its customers of selectedproductlinesandpaidoutatotalofRM21millionformakingnoclaimsduringthecoverageperiod.

STREAMLINING BUSINESS OPERATIONS

TheGroupreformeditsoperationsthroughtheenhancementoftheGroup’stechnologycapabilitytodeliverqualityresultsandstreamline our resources in support of the Group’s business growth.

STMKB Group in 2018 embarked on an integrated digitaltransformation of its business operations that was successfully carriedout instages throughout theyear.TheGroup initiateda revival project, aimed at promoting electronic contributionpaymentmethods to improve the persistency of contributionpaymentsbyourcustomersasidefromconductingclientprofilemaintenance toensure theavailabilityofup-to-datecustomerdata.

Inour continuousefforts to improve theservices rendered toour bank partners, the Group streamlined its bancatakafuloperations by introducing a dedicated helpline served toprovide immediate assistance related tonon-motor enquiries.Additionally, we developed a self-service platform via emailcorrespondence through our bancatakaful portal, myTakaful Partnerstobettermanagequeriesonourmotortakafulproductandprovidea24-hourunderwritingservicetobankpartners.


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For Family Takaful operations, the Group enhanced its coresystemby implementingclaimsadjudicationtoalignwith thecertificateadministrationandbenefitssetup,ensuringseamlessclaim procedures and administration. Correspondingly, welaunchedane-Claimssubmissionfacilityviaourbancatakafulportal to provide simplified claim processes with betterapplicationsandfasterresponsetimes.

Realizing the importanceofdiversifying theservicesprovidedto our EB corporate clients, the Group through itsmyTakaful Employee Benefits online portal created a digital platform,enabling online submission of group term life claims along with supporting documents conveniently. In order to facilitate ourEBclaimsmanagement,wealsorevisedtheclaimsprocessingworkflowandimprovedtheturnaroundtime.

FOSTERING SUSTAINABLE HUMAN CAPITAL

In response to the importance of business strategy andhumanresourceplanningthatintertwinedourhumanresourcemanagement and the overall strategic plan of the Group, weconsistentlyfocusedonhumanresourcestrategyinrecognizingour most valuable asset, the employees. The implementation processofourhumanresourceapproachunifiedthebehaviorandactionsofouremployeesandtheiroveralldevelopmentinaccordancewiththeneedsoftheGroup.

During the year under review, our human resource initiativeswere segmented into the following three main categories,strategicallydesigned fora long-termplancreated toachievethe Group’s business objectives.

u People Management• OrganizingLeadershipDevelopmentPrograms• Developing resonant team for talent mobility• Managing talent through four layers of succession

planning groupings:1. LeadershipDevelopmentProgram(“L.D.P.”)2. StaffTalentAwareness&RetentionProgram

(“S.T.A.R.”)3. Leadership Intensive Talent Enrichment

Program(“L.I.T.E.”)4. ClericalDevelopmentProgram(“C.D.P”)

u Process Enhancement• Cultivating a sustainable high performance culture• Implementing cost-effective human resource

strategy • Managing our manpower operating expenses • Providing competitive employee benefits and

rewardinghighperformingemployees

u Strategic Partnership• Coordinating on campus engagement activities

withselectedprivatehighereducation institutionsnationwide

• PromotingourBrandastheemployerofchoiceviadigitalandsocialmediaplatforms

TheGroupincompliancewiththeguidelinesimposedbyBNMhas laid the groundwork for succession planning by initiatingan all-inclusive Talent Management Framework supportedby internal guiding principles in order tomaintain the quality,consistency and accuracy of our talent selection procedure.We deliberately identified the critical positions and functionswithintheGroupbasedonourMissionCriticalPosition(“MCP”)approachthatwehavevalidated indeterminingthesourceoftalent essential to the Group.

Emphasizing our focal point on pushing the boundaries ofproductivity and value,we streamlined theKeyResponsibilityAreas (“KRA”) of all divisions within the Group, focusing onfour core areas; financial, customer, business process aswell as learning and growth. This key initiative was carriedout tocorrelate theKeyPerformance Indicators (“KPI”)ofouremployees with the overall business performance of the Group.

Throughourstrategicpartnershipwithprivatehighereducationinstitutions nationwide, we have successfully organizedengagement sessions in scouting for high potential talent as part of our ongoing talent acquisition planning. Besides, weactivelyorganizedactivitiesoncampustopromotetheGroupasanemployerofchoicethatoffersconduciveworkcultureandworkplace environment to attract new talent.

MANAGING OUR MATERIAL ISSUES

TheGroupremainsexposedtotheriskofunderwritinglosses,which has an effect on its ability in writing new businesses. Often, poor underwriting practices and external events resultin higher than expected underwriting losses. In order to limitthe impact of such losses, the Group ensures that retakaful arrangementsareestablishedinadditiontopracticingprudentunderwriting.

AsanIslamic insurancecompanyengagedintheprovisionoflong-term insuranceprotection,wecontinue tobeexposed totheriskofadurationmismatchbetweenourinvestmentassetsand financial obligations. Hence, we invest in high qualitySukukwithlongertermstomaturityandregularlymonitorthemismatchlevelaspartofourongoingstrategyinreducingthisexposure.Additionally,wecloselymonitorourliquiditypositionto ensure adequate liquidity to timely honour our financialobligations.

WecontinuetoleadinFamilyTakafulbusiness,withbusinessmainly derived from the credit-related and group employeebenefitsproducts.AspartofourongoingeffortstosustaintheGroup’smarket-leadingposition,wehavediversifiedourproductdistribution by expanding our distribution channels. STMKBGroupalsoimplementsrobustandefficientbusinessprocessesto sustain our preferred business relationships with existingpartners.

In view of the stiff competition faced by the General Takafulindustry under liberalisedmarket conditions,wemanage thisriskbyofferinginnovativeproductsandleverageonourdigital


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strategy to grow the business. Significant investments intools,applicationsandnewtechnologiesaremadetoimproveour operational efficiencies and provide a seamless serviceexperience to the customers.

On thebackof volatilemarket conditions, theGroup remainsexposedtotheriskofinvestmentlosses.However,wemanagethis by performing periodic reviews on the asset allocationstrategy,cut-lossinvestmentpolicyandhavingminimumcreditrating requirements in place.

The Group has a sound and robust Shariah governanceframework with emphasis placed on the roles of keyfunctionalities in ensuring the highest level of compliance with Shariah principles. Taking into account that non-compliance withShariahprinciplesmightresultinfinancialandreputationdamagetotheGroup,westrictlyadheretotherequirementssetbytheregulatorybodyconsistently.

PROSPECTS AND OUTLOOK

Looking at the conducive business environment on top oflow-base effect, Malaysia’s economic growth is projected toimprove in 2019, despite the trajectories of global trade andfinancial stability, geopolitical risks, commodity prices, stablelabour market and improved business along with consumersentiments.

Taking into account of the low penetration rate, rising urbanization, escalatingmedical costs and ageing populationin addition to strong demand in the Islamic banking andfinance sector, the Islamic insurance industry is poised tosustain its healthy growth momentum. Given the growing domesticeconomy,Malaysia’stakafulindustryisanticipatedtocontinueinoutpacingitsconventionalcounterpartsandfurtherstrengthenitspositionastheleadingtakafulmarketinAsean.

Digitalisation will remain as the buzzword and will be a keycomponentindrivingagilegrowthinacompetitiveenvironment.As digital transformation is critical to optimize costs andboost innovationamongst takafuloperatorsandconventionalindustryplayers,bothdigitalanddirectdistributionchannelswillcontinue to be imperative for overall growth.

The development of takaful and conventional insuranceindustry is set to remain on a positive note in tandem withthe Government’s ongoing initiatives to spur the demandfor protection amongst the consumers. Several initiatives announcedduring theyearunder reviewwillbecarriedout in2019 toaddress theunderservedmarket,particularly theB40segment.

The removal of stamp duty on Perlindungan Tenang productofferings for a period of two years will ease the burden ofsubscribing protection products amongst the B40 group to

furtherreducethecountry’sprotectiongap.TheimplementationofRM3,000taxreliefforbothLifeandTakafulproductsisalsoviewedasanencouragingmove inpromotingtheadoptionofprotectionamongthetargetedconsumers.

The investment-linkedproductsegment in thepastfiveyearshas been witnessing a significant growth and BNM throughthe introduction of the Investment-Linked (“IL”) guidelines isimposingadditionalrequirementsinmanagingtheILbusinessefficiently. The regulator along with the industry players arecontinuing to improve the consumer protection via productdesign,disclosurelevelandsustainabilityassessmenttoensurethe customers are well informed of the investment risks inmeetingtheirprotectionneedsandexpectations.

TheescalatingmedicalinflationonthebackofthecompetitivemarketoftheEBsegmentwillfurtherpushtheindustryplayersto employ strategic measures in sustaining their shares of the pie and stay ahead of the competitors. Adopting prudentunderwritingphilosophyapartfromofferingcompetitivepricingcoupled with innovative value-added services is essentiallycrucial to secure new business whilst sustaining existing business accounts.

OntheGeneralbusinesssegment,itisexpectedthatBNMwillcarryoutanassessmentof thephased liberalization in2019,followingtheimplementationoftheMotordetarifficationinJuly2017.TheoutcomewilldeterminethereadinessoftheindustryandconsumersinadoptingaliberalizedmarketinanticipationoftheforthcomingFiredetariffication.

Further liberalizationwillenhancetheefficiencyof the takafuland conventional insurance industry as more custom-madeproductswithcompetitivebenefitsandpricingwillbeintroducedtosuitthediverseconsumerneeds.Additionally,well-resourcedindustry players with robust risk-based pricing model willeventuallyhaveanadvantageovertheircompetitorstoregisterbetterunderwritingprofitandcompeteinadynamicmarket.

Given the prevailing growth trend bolstered by the favorablemarketenvironmentofthetakafulindustry,theindustryplayersmusttakeintoconsiderationofthechallengesintheyearahead.Whileimprovingeconomicconditionsareprojectedtopresentaprospectiveoutlookin2019,takafuloperatorsarestillrequiredtodealwithaplethoraof internal andexternal issues relatedtotechnology,talent,regulations,distributionchannels,productdevelopmentaswellasmergersandacquisitionsinthemarket.Inordertoswiftlyadapttotherapidlychangingeconomyandconsumer expectations, ongoing digital transformation isidentifiedasavitalfacetinreapingthebenefitsoftheuntappedmarket to achieve growth.

In view of the strong demand in the takaful industry andvibrant market environment, the Group is optimistic to further expanditsmarketsharein2019withconsecutivedouble-digit


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growth.Wewillcontinuetoadoptinnovativestrategiesviatheimplementation of our digital strategy, introduction of onlinesolutions, expansion of the Group’s distribution capabilities,strategicpartnershipswith leading Islamicbanks,adoptionoftheinvestorrelationsprogramandBrandawarenessinitiativesto sustain our market leading position in the Family Takafulbusiness whilst increasing our market share in the General Takaful business.

In maintaining our market leadership in the bancatakafulsegment, we will leverage on the growth of our premier bank partners to further penetrate the retail customers andaggressively implement digitally-assistedmarketing initiativesand campaigns. TheGroupwill further strengthen itsmarketreachintheEBportfoliobyofferingadifferentiatedexperienceof customized services to its corporate clients to retain andgenerate profitable business. The Group will also focus onimproving themanagementof itsdistributionnetwork for theLPPSAbusinessbyactivelyrecruitingandretainingproductiveagency force.

STMKB Group through its corporate agency force and ClickforCoverOSPwilladoptapricingsegmentationapproachfortargetedgroupswithbetterclaimsexperiencetodrivegrowthofitsmotortakafulbusinessandcontinuetodevelopandenhanceitsdigitalecosystemtosupportouronlinedistributionstrategy.We will strike a good balance between the Group’s growth,underwritingmarginsandmarketpositiontobettermanageourGeneral Takaful business.

Additionally,wewillconstantlyreviewourinvestmentstrategytogainastableandadequateinvestmentyieldandcautiouslyadopt a disciplined expense management to increase ouroperational efficiency. STMKB Group will continue to amplifyitsbrandpresencebyutilizingthesocialmediaplatformsandotherstrategicadvertisingchannelstoachievegreatervisibilityandappealtotheconsumers.

ACKNOWLEDGEMENTS

Theyearunderreviewhasdefinitelybeenaperiodoftransitionfor all of us at STMKB Group. Thirty four years of operatingin a rapidly evolving industry and challenging market, weconsecutively sustained our excellent financial performance.Weclosedouttheyearwithnewachievementsandourstellarresultsclearlyreflectedouroperatingabilityandstrengthduringtimesofmarketuncertaintyandshort-termvolatility.

On behalf of the Management, I would like to express mydeepest gratitude to the Board of Directors and ShariahAdvisoryBodyfortheirvaluableguidanceandabigTerima Kasih to our valued shareholders and customers for their trust andconfidence in STMKB Group. I would also like to conveymyutmost appreciation to all employees for staying the course in achievingourtargetsfortheyear2018.Wehavecomethroughayearthatwasfilledwithbothchallengesandvictoriesandhowreassuring it has been to know that we can count on all of you regardlessofwhatfacesus.

2019willbringitsownmixofsuccessesandchallengesandaswepropelourselvestowardsnewmilestones,wemustfurtherenhanceourefficiencythroughcontinuousmarketingandsalesexpansiontosecureprofitablebusinessthatwillenablethenextleap for theGroup’s future. I amconfident that by continuingto respond reliably to the needs of customers and providingprotection that is truly satisfying to them, we will always be able toprovidethetakafulsolutionstheydeserve.

Dato’ Sri Mohamed Hassan KamilGroup Chief Executive Officer


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Sustainability Report

SCOPE

This Sustainability Report provides the sustainable development of Syarikat TakafulMalaysia Keluarga Berhad (“STMKB” or “theCompany”) (formerly knownasSyarikatTakafulMalaysiaBerhad) and its subsidiary companies (“STMKBGroup”or “theGroup”),encompassingour relevantbusiness functionsandoperations,achievements, initiatives,strategiesandmeasures throughout thefinancialyearended31December2018.

REFERENCESANDGUIDELINES

OurSustainabilityReportwasdevelopedwithreferencetotheBursaMalaysiaSecuritiesBerhad's(“BursaMalaysia”)SustainabilityReportingGuide,theFTSE4GoodBursaMalaysiaIndex,theUnitedNationsandMalaysiaSustainableDevelopmentGoals(“SDGs”),GlobalReportingInitiative(“GRI”)StandardsandtheGroup’sownSustainabilityReport.

2018SUSTAINABILITYACHIEVEMENTS

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SUSTAINABILITYSTRATEGY

AsthefirstIslamicinsurancecompanyinthecountryforoverthreedecades,STMKBGrouphastransformedintoaleadingindustryplayerinprovidingtakafulsolutionsandriskmanagementexpertisetomeettheever-risingcustomerexpectationsonthebackofthecompetitivemarketenvironment.ByembeddingasustainabilitymindsetinachievingoperationalefficiencythroughouttheGroup,weconsistentlycultivateasustainabilitystrategyintoourbusinessoperationstoadoptasustainablebusinessmodelindeliveringlongtermvaluetoallourstakeholders.

Realizing the importanceofoperating inaneconomically, environmentallyandsociallysustainablemanner,wearecommitted to exploreinnovativeapproachestoamplifyoursustainabilityefforts.Focusingonmanagingrisksandtakingadvantageofbusinessopportunities, we continue promoting a culture of sustainability to operate our business in a manner that minimizes our environmental andsocialimpactswhilstintegratingthesustainabilityprinciplesandpracticesintoourbusinessoperations.

SUSTAINABILITYAPPROACH

InSeptember2015,allUnitedNationsMemberStatesadoptedthe2030AgendaforSustainableDevelopmentthatprovidesasharedblueprinttoaccomplishasustainablefutureforall.Consistsof17SustainableDevelopmentGoals(“SDGs”),theblueprintissetforactioninaglobalpartnershipbyalldevelopedanddevelopingcountriesinaddressingtheglobalchallenges,includingthosethatarerelatedtopoverty,inequality,climate,environmentaldegradation,prosperity,peaceandjustice.

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STRATEGIC INITIATIVES

Sustainable Development Goals

Sustainable Development

Technological Innovation

Business Operations

Technical Excellence

Client-Centric

Ethical Practice

Talent Development

Sustainability Strategy

Community Development

Support healthy lives and well-being for all by offering inclusive takaful solutions and services

Promote lifelong learning opportunities for all

Uphold sustainable economic growth as well as employment opportunities

Foster innovation and build resilient infrastructure to stay relevant in the market

Integrate climate change measures into business operations and planning

Promote inclusive societies for sustainable development

Ensure sustainable consumption and production patterns

Provide takaful solutions to ensure inclusive, safe, resilient and sustainable human settlements

Adopt fair business and employment practices


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SUSTAINABILITYGOVERNANCE

Ourcommitmenttosustainabilityderivesfromthetopofourorganizationandwehavebeenconsistentlyadoptingthestructureofoursustainabilitygovernanceasdisclosedinthepreviousreportingyear.

TheBoardofDirectors(“TheBoard”)comprisesanumberofindependentdirectorstosafeguardtheinterestsofourstakeholders.TheManagementofSTMKBGroupisspearheadedbytheGroupChiefExecutiveOfficer,whosupervisestheoverall implementationofoursustainabilitypracticesinordertoachieveoperationalefficiency.TheBoardhasdelegatedresponsibilitiestothefollowingBoardCommitteestofacilitatethemanagementandoperationofbusinessactivitiesthroughouttheGroup.

i) AuditCommitteeii) Nomination&RemunerationCommitteeiii) BoardRiskCommitteeiv) InvestmentCommittee

TheShariahAdvisoryBodyofSTMKBGroupconsistsofexpertsinvariousfieldsthatplayavitalroleinprovidingcounseltotheBoardandtheManagementinordertoensurethatweareconductingourbusinessinaccordancetotheShariahGuidelinesandPrinciples.OurGroup’soperations,affairsandactivitiesarecarriedoutinlinewithourShariahGovernanceFrameworkaspartofourongoingsustainability initiative to comply with the Shariah requirements.

ThedetailedinformationofourCorporateGovernanceissetoutundertheCorporateGovernanceOverviewStatementsectionoftheCompany’sAnnualReport.Pleaserefertopage53ofthe2018AnnualReportrespectively.

Risk Management

STMKBGrouphasanEnterpriseRiskManagement (“ERM”)Framework inviewof thevalueof institutionalisedriskmanagement,whichencompassestheprocessofidentification,assessment,managementandreportingofrisksonaconsistentandreliablebasis.Infacilitatingarisk-alignedstrategicplanningprocessfortheGroup,wehaveinplaceRiskManagementandInternalControlthatisessentialinourdecision-makingprocess.

i. Managing Risk

ManagingriskisessentialtothesustainabilityofSTMKBGroup’sbusinessanddeliveryofvaluetoshareholders.

Weremaindedicatedincontinuouslyimprovingourriskmanagementframework,systemsandprocessestoensurerisksarebeingwellmanagedandmonitoredthroughouttheorganisation.

TherisksidentifiedaremanagedthroughtheERMFramework,whichsetsoutthekeyriskmanagementprocessesofidentifying,evaluating,monitoringandmanagingsignificantriskexposuresarisingfromthebusinessoperations.

STMKBGrouphasaRiskAppetiteStatement intended toguideandsupport theGroup inorder to thrive inan increasinglydynamicandchangingbusinessenvironment.

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ii. Embedding Risk Culture

OurERMFrameworkdistinguishesthesignificanceofbuildingastrongriskawarenessculturetobettermanagetheGroup’srisksefficiently.

AtSTMKBGroup,ourriskculturestartsfromtheBoardandcascadesdowntotheManagementandfinallytoallemployees.Westronglybelievethatitiscrucialtoadoptaneffectiveriskmanagementsysteminvolvingourstakeholdersatallstages.Inmanagingrisks,westrivetoadoptthefollowingconceptofthreelevelsofdefence.

(a) Thefirstlevelofdefenceistheoperationallevelwherebyriskisfirstidentified.Riskcoordinatorsand/orHeadofDivision/Departmentsarerequiredtoassumetheresponsibilityofidentifyingandmanagingrisksintheirrespectivefunctions,aswellasescalatingsignificantpotentialriskstoManagementRiskCommittee(“MRC”)andBoardRiskCommittee(“BRC”).

(b) ThesecondlevelofdefenceconsistsofRiskManagementDivision(“RMD”)andMRC(formedbySeniorManagement).MRCwillensurethealignmentofSTMKBGroup’sbusinesspracticestotheriskmanagementpolicy,whilsttheRMDwillassistMRCandBRCindischargingitsresponsibilitiesbyprovidingoversightoftheeffectivenessofriskmanagement.

(c) Thethirdlevelofdefenceiscurrentlyperformedbytheinternalauditfunction.ItprovidestheAuditCommitteewithanindependentassuranceontheeffectivenessofriskmanagementcontrolsandfunctions.

MATERIALSUSTAINABILITYMATTERSIntoday’sfast-paced,constantlychangingbusinessworld,identifyingmaterialityfacilitatesusinprioritisingthesustainabilityissuesthatmattermosttoourbusinessandstakeholders.AnissueisconsideredasmaterialtoSTMKBGroupifitimpactsourbusinessandconsideredcrucialtoourwide-rangingstakeholders.OurmaterialsustainabilitymatterscanbecategorizedintofivethemesofResponsibleFinance,InclusiveGrowth,TalentDevelopment,CorporateSustainabilityandEthicalPractice.

MANAGINGOURMATERIALMATTERS

Talent DevelopmentObjective Tomaximizeperformancelevelsandcompetencyofemployees

Material Sustainability Matters

Talent Management

Scope of Sustainability Matters

Learninganddevelopment,rewardsandremuneration&successionplanning

Progress in 2018

Indicators Status Updates

Learninganddevelopment

h200%ofsoft-skillsandtechnicaltraininghours

Succession planning CarriedoutLeadershipDevelopment,StaffTalent&Retention,LeadershipIntensiveTalentEnrichmentandClericalDevelopmentPrograms

Workforce composition

Refertothetableonpage39

Strategic Initiatives

Talent Development

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Responsible FinanceObjectives Toachievetheagilityandflexibility

to stay relevant in the ongoing digitalrevolution

Toreducecost,increaseefficiencyandsupportthedigitizationofourbusiness operations

To meet customer expectations anddeliversuperiorshareholdervalue


Digital Transformation OperationalEfficiency Sustainable Growth


Incorporatedigitalcapabilitiesintobusinessmodel,provideinnovativeproductofferingsandservices&introducecutting-edgetakafulsolutions

Enhancementandmigrationofsystems, streamlining of business operations, improvement of workflowsandturnaroundtimes

Deliverprofitablegrowthwithrecordprofitresults,expandmarketshareviabusinessportfoliosandsoundfinancialfundamentalswithstrong capital position

Progress in 2018

Indicators Status Updates Indicators Status Updates Indicators Status Updates

Click for Cover Online Sales Portal

Officiallylaunchedon 2March2018

Revival project for customerdatamaintenance

Completed Operating Revenue

h23%

Launchof TakafulmyClickMediCare& TakafulmyClick TravelPA via Click forCover OSP

Completed

Mobile app forEBcorporateclients

Completed Systemenhancement

Completed ProfitAfterTax& Zakat

h43%

2ndpaymentgateway for OSP

Completed Return on Equity 32.7%

e-Claimssubmission viaBancatakafulandmyTakafulEBportals

Completed Systemmigration

Newinvestmentsystem

BusinessGrowth

h32%

A new platformfor the CostsandUtilizationdashboard,TakafulmyClick C&U

Completed BancaHelpdeskonline self-service

Completed


Technological Innovation BusinessOperations Sustainable Development

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Ethical Practice & ReportingObjectives TokeeptrackoftheindustryrelatedregulatoryupdatesMaterial Sustainability Matters

Regulatory Changes


Detariffication,introductionofnewguidelines,changeinregulationsandlawoftheindustry

Progress in 2018


Conversion of composite licence to single licences Effective1June2018PhasedliberalizationofMotorandFireTariffs Introducednewmotorandfiretakafulproducts


Technical Excellence

Responsible FinanceObjectives TomitigateandmanagerisksMaterial Sustainability Matters

Risk Management


Underwritingrisk,operationalrisk,creditriskcontrols&marketrisk

Progress in 2018


Exposuretotheriskofinvestmentlossesduetovolatilemarketconditions

Performedperiodicreviewsontheassetallocationstrategy,cut-lossinvestmentpolicyandhavingminimumcreditratingrequirementsinplace

Riskofimpactcomingfrompoorunderwritingpracticesandexternaleventsthatcanresultinhigherthanexpectedunderwritinglosses

Establishedretakafularrangementsinadditiontopracticingprudentunderwriting

Riskofadurationmismatchbetweenourinvestmentassetsandfinancialobligations

InvestedinhighqualitySukukwithlongertermstomaturityandregularmonitoringofthemismatchlevel

SustainingtheGroup’smarket-leadingposition Diversifiedourproductdistributionbyexpandingourdistributionchannelsandimplementedrobustandefficientbusinessprocessestosustainourpreferredbusiness relationships with existing partners

StiffcompetitionfacedbytheGeneralTakafulindustryunderliberalisedmarketconditions

Offeringinnovativeproductsandleveragingonourdigitalstrategytogrowthebusinesswhilstenhancingcustomerexperience.Significantinvestmentsintools,applicationsandnewtechnologiesweremadetoimproveouroperationalefficiencies


Sustainable Development

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Ethical Practice & ReportingObjectives TocultivategoodbusinesspracticesinlinewithregulatorycomplianceMaterial Sustainability Matters

Ethics & Compliance


Regulatorycompliance,goodcorporategovernance&responsiblebusinesspractices

Progress in 2018


Awareness trainings ConductedPersonalDataProtectionAct2010("PDPA"),Anti-MoneyLaunderingandCounterFinancingofTerrorism("AML/CFT")andITSecurityAwarenesstrainings

Policy RevisedAnti-MoneyLaunderingandCounterFinancingofTerrorism("AML/CFT")Policy

Privacy Notice RevisedtheGroup'sPrivacyNoticetobeincompliancewiththePersonalDataProtectionAct2010andCodeofPracticeonPersonalDatafortheinsuranceandtakafulindustryinMalaysia


Ethical Practice

Inclusive Growth Corporate SustainabilityObjectives To increase customer lifetime value

andsustaincustomerloyaltyandprofits

To foster a sustainability strategy, encompassing the Environmental, Social&Governance(“ESG”)matters

Tocultivategoodwill,learningandbuildingrelationshipswiththeunderservedcommunitiesaswellastocreateandimplementsolutions to social challenges


Customer Centricity Integrating Sustainability Community Empowerment


Provideexcellentcustomerserviceandrespondwithintheturnaroundtime

Integrate sustainability into business operations, operate business in an economically, environmentallyandsociallysustainable manner

Organizecommunity-basedactivities, voluntary employee participation,monetaryandin-kindcontributions

Progress in 2018

Indicators Status Updates Indicators Status Updates Indicators Status Updates

Number of enquiries attended

155,181 Total amountof electricityconsumption

6,551,363kWh Total amount ofcontributions via CharityFund

RM315,266

Number ofcomplaints resolved

68 Total water consumption

30,185m3 Total numberof CSR activitiesconducted

29

Number offeedbackresponded

137 Total amountof paperconsumption

6,144reams Total hours allocatedforCSR activities

3,419


Client-Centric Sustainability Strategy Community Development

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STAKEHOLDERENGAGEMENTAtSTMKBGroup,werecognizethevitalroleofstakeholdersinourbusinessthatisfundamentaltoachieveasustainablegrowth.In2018,weinteractedwithdifferentstakeholdergroupsaspartofourongoingeffortstoidentifyoursustainabilityrisksandopportunitiesin relation to our sustainability performance.

Customers Employees

Agents / Business Partners Investors / Shareholders

Industry Peers & Value Chain Partners Government & Regulators

Community Media

In order to better understand the needs and expectations of our diverse range of stakeholders, we have engaged with our keystakeholders through multiple engagement channels concerning relevant key areas as illustrated in the following table of ourstakeholderengagement.

Stakeholder Groups

Engagement Channels Key Areas of Concern Mitigating Measures

Customers • Customer satisfaction survey• Onlineandwalk-incustomer

feedbackplatforms• Online portals• Corporate website

• OperationalEfficiency• Customer Centricity• Digital Transformation• Ethics & Compliance• Integrating Sustainability• Sustainable Growth

• UpholdandadoptourCustomerService Charter

• Providetimely,transparentandefficientservice

• Systematicoperatingprocedures• Provideonlineplatformslike

the customer portal, corporate websiteandonlinesalesportal

• Adoptgoodbusinesspracticesandregulatorycompliance

Employees • Employee engagement programs

• Teambuildingsessions• Staffappreciationandfestive

gatherings• Brownbagsessions

• Talent Management• Digital Transformation• Sustainable Growth• Customer Centricity• Risk Management• Regulatory Changes

• Adoptinternalemployeehandbookandindustryrelations

• Organize trainings, employee engagementandknowledgesharing programs

• Successionplanningandperformance management

(refertotheRemunerationPolicyStatementonpage62)

Agents /Business Partners

• Online surveys• Agency training sessions• Meetings• Events• Online portals• Onlinehelpdeskandhotline

• Customer Centricity• Ethics & Compliance• Digital Transformation• Regulatory Changes• OperationalEfficiency• Sustainable Growth

• System enhancement/migration• Systematicoperatingprocedures• Providetrainings• Offervalue-addedservices• Introduceonline/digitalplatforms

like portals, mobile app, online helpdesk&e-Submissionofdocuments



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Stakeholder Groups

Engagement Channels Key Areas of Concern Mitigating Measures

Investors /Shareholders

• Annual General Meetings• Analystandfundmanager

briefings• Annual reports• Quarterlyfinancialresults• Shareholders’circulars• Meetingswithfundmanagers

andinvestors• Mediareleases

• Sustainable Growth• Digital Transformation• Integrating Sustainability• Ethics & Compliance• Talent Management• Regulatory Changes• Customer Centricity

• Deliversuperiorshareholdervalue

• Registerdoubledigitgrowthwithrecordprofit

• Outstandingperformanceandfinancialresults

• Increasemarketshareandpenetration rate


Industry Peers & Value Chain Partners

• Conferencesandmeetings• Industryworkshops• Networking events• Businesspartnerships

• Regulatory Changes• Ethics & Compliance• Risk Management• Sustainable Growth

• Participateinindustry-relatedworkshops,seminarsandexhibitions

• Collaborate through strategic partnerships

Government & Regulators

• Reportsandcompliance• Periodicmeetings• Seminarsandconferences

• Regulatory Changes• Ethics & Compliance• Risk Management• Sustainable Growth

• Providereports• Attendperiodicmeetings,

trainings,seminarsandconferences

• Adoptguidelines• Regulatory compliance• Goodbusinesspractices

Community • Corporate Social Responsibility activities

• Employee volunteerism programs

• Community-basedprograms

• Community Empowerment• Integrating Sustainability

• Organize Corporate Social Responsibility activities

• Makemonetaryandin-kindcontributions to relevant beneficiaries

Media • Mediareleases• Mediainterviews• Events• Press conferences

• Digital Transformation• Sustainable Growth• Regulatory Changes• Community Empowerment

• Circulation of press releases• Provideresponsestomedia

interviews• Organize press conferences• Organizeeventsandmediavisits

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MATERIALITYMETHODOLOGY & PROCESS

Weembarkedonamethodologyandproceduretodeterminethematerialsustainabilitymatterswiththeaimofachievingsustainablebusinessgrowth.Weexercisedourmaterialityassessmentinclassifyingthepriorityofthesustainabilityissuesacrossourvaluechaintoensurethatourstrategyisfocusingonthetargetedareas,thusallowingusinprioritizingtheissuesrelevanttoourbusinessandstakeholders.

TheGroupispartoftheSustainabilitySteeringCommitteeofitsholdingcompany,BIMBHoldingsBerhad("BHB").TheSustainabilitySteeringCommitteealongwithitsSustainabilityWorkingGroupparticipatedinworkshopsrelatedtothefollowingsubjectmatters.

Introduction to Sustainability

Globalandlocaldevelopmentsandregulationsaswellasstandard

reporting practices

Identification, Assessment and Prioritisation of

StakeholdersClassifying the

relevantstakeholders

Identification and Prioritisation of Material Matters

Determining the important material matters

MATERIALITYMATRIXMaterialityassessmenthelpsinkeepingusabreastofoursustainabledevelopment,providingusthemeanstoenhanceourstrategyandtailorourreportingtoalignwiththeinterestsandneedsoftheGroupandourstakeholders.

The materiality matrix covers the key sustainability themes of the Group that consists of the relevant material matters. The following detailsofthematerialitymatrixillustratedareimportanttousandourstakeholders.


Moderate

Med

ium

High

Stak

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est

Significant Major

• Sustainable Growth

• Digital Tranformation

• Customer Centricity

• Regulatory Changes

• Ethics & Compliance

• Risk Management

• Operational Efficiency

• Talent Management

• Integrating Sustainability• Community Empowerment

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MATERIALSUSTAINABILITYMATTERS


Importance to the Group Importance to our Stakeholder Groups

Customer Centricity

Customer centricity is always at the forefront of our business strategy that serves as the underlyinggroundworkofdoingbusinesswithour customers in a manner that provides apositive customer experience at the point of sale and post-sale to drive repeat business,customerloyaltyandprofits.

Bybeingcustomer-centric,weareputtingourstakeholdersattheheartofourorganizationtoincreasecustomer lifetime valueby renderingexcellent customer service throughout the entire subscription process to deliversustainable growth and expand our marketshare in the competitive market.

Sustainable Growth

Delivering profitable growth and superiorshareholder value whilst meeting theexpectations of our customers and businesspartnersareimportanttous.Weadoptacross-the-board strategies to expand our marketshare via multiple distribution channels anduphold strong financial fundamentals andcapital position.

Sustaining profitable growth with solidfinancial position is an essential componentto our stakeholders in order for the Group tostayaheadofthecompetitorsandcontinueinprovidingtakafulsolutionstomeettheirdiverseprotectionneeds.

Digital Transformation

Creating value through digital transformationanddisruptiveinnovationarepartofourdigitalstrategytostayrelevantintheongoingdigitalrevolutionandmeetthecustomerexpectations.We remain focused inprovidingan innovativerangeofproductstocomplementthedifferentlife stages of our customers. We want to leveragethetechnologytoofferadifferentiatedexperience,customizedproductsandservicesaswellassimplifiedend-to-endengagements.

Our stakeholders are increasingly looking forprotection solutions with a high degree ofpersonalization that requires us to incorporate digital capabilities directly into our businessmodel. In catering to the needs of mobile-empowered stakeholders, it has become animmediateactionitemtousinadoptingdigitaltransformationtokeepupwiththefastpacedofinsurancetechnologydevelopment.

Regulatory Changes

Managing regulatory, guideline, policy orprocedure changes that are applicable to ourbusiness and the takaful industry in order toensure that we are adhering to the standardpractices imposed. We implement regulatorycompliance and adhere to laws, regulations,guidelines and specifications relevant to ourbusiness operations.

Regulatory changes shape the structure andconduct of our industry and set in motionmajor shifts in economic value that impact our stakeholders,requiringustolinkupregulatorychanges with our products, business andcorporate strategies in maximizing long-term valuetoourstakeholders.

Risk Management

Risk management is essential to the sustainability of the Group's business anddeliveryofvaluetoourstakeholders.Weremaindedicated in improving our risk managementframework, systemsandprocesses toensurerisks are being well managed and monitoredthroughout the organisation.

Maximizingvalue toourstakeholders throughrisk and business continuity managementto optimize risk and return, protect againstdownside risks and manage volatility aroundourbusinessandfinancialresults.


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Importance to the Group Importance to our Stakeholder Groups

Ethics & Compliance

Adopting Shariah values and good ethicalpractices in conducting our business acrossallourorganizational levels isvital inorder topromote sustainability within the business and thesocietyasawhole.Byconforming tothe ethical practices, we not only reduce ourorganizational risks, but most importantly create business opportunities.

EnsuringthatweapplyShariahvaluesandbestpracticesasthecorefoundationofourbusinessoperationsprovidesthestakeholderscertaintyand confidence knowing that as an Islamicinsurance company, we are conducting ourbusinessinafairandtransparentenvironment.

Operational Efficiency

Transforming our business operations through anintegrateddigitaltransformationwillenableus toachieve theagilityand flexibilityneededto remain competitive in the market. Byimplementing an enhanced and innovative ITinfrastructure and streamlining our businessoperations, we are aligning our overall strategy to correspondwith industry changes and theevolvingdemandsofthecustomers.

Increasing the efficiency of our businessoperationsisperceivedasanimportantmeanstoourstakeholdersinorderforustomaintainprofitability despite competitive marketconditions.Itisessentialtorespondtodemandsfor greater transparency, faster access to informationandeffectivecommunicationwithourstakeholders.

Talent Management

Recognizing that employees are our primary asset, this priority emphasizes three core components of people management, performance management and staffengagement. Our people management strategy is alignedcloselywithorganizational strategyandourgoalsasthesourceofourcompetitiveadvantage against the economic challengesandcompetitivepressuresintheindustry.

Managingtheemployeestodevelopskillsandcapabilities as well as to retain performing staff is vital in achieving our organizational goals and business objectives that will assist us infocusing on what really matters in the interest ofourstakeholders.

Integrating Sustainability

AimedatachievingtheobjectiveofShariahtogeneratepositiveandsustainableimpacttotheeconomy,communityandenvironment,wearedetermined in creating long-term stakeholdervalue through the implementation of our business strategy that focuses on the ethical, social, environmental, cultural and economicdimensionsofthewaywedoourbusiness.

Incorporating a sustainability mindset in ouroperationsatalllevelsiscorrespondingtothedemandofourstakeholdersinordertocreatelongtermvalueandhighreturnstomaintainasustainable growth in a competitive market by operating in an economically, environmentally andsociallysustainablemanner.

Community Empowerment

Fostering goodwill and learning as wellas building relationships that transcendrace, gender and age are what we continueto practice via our corporate citizenship programmes. Our active involvement in creatingand implementingsolutions tosocialchallenges is in response to our stakeholderdemandsandexpectations.

Engaging our stakeholders by buildingrelationships with the community through corporate social responsibility activities creates positive impact on the branding andrecognitionof theGroupasagoodcorporatecitizenamongthestakeholdersthatcanleadtoincreasedsalesandrisingprofits.


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RESPONSIBLEFINANCE

DIGITAL TRANSFORMATION

Incorporatingdigitalcapabilitiesintoourbusinessmodelisvitaltoachievetheagilityandflexibilityneededtostayrelevantinthecompetitivemarketandmeetthecustomerexpectations.Wehaveembarkedondigital initiativesaspartofourholisticdigital strategy toelevate theGroup togreaterheights,aheadof its industrypeersandconventional industryplayers.

CLICK FOR COVER ONLINE SALES PORTAL

Tomarkourventureintotheworldofdigitalinsurance,wehaveofficiallylaunchedouronlinesalesportal(“OSP”),ClickforCoverthatrepresentsagreatsignificanceonoureffortstowardsdigitalisationanddiversificationofourdistributionchannels.Thelaunchofourdigitalstrategicplansignifiesourcommitmenttowardsrev

Documents

We’ve Got You Covered - Takaful Malaysia...SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD (Formerly known as Syarikat Takaful Malaysia Berhad) (131646-K) We’ve Got You CoveredYour Preferred