The implications of public company requirements under Islamic Financial Services Act (IFSA) 2013 on Takaful Operators in Malaysia Online publication date: Mon, 16-Oct-2017
by Muhammad Ikhbal Abdul Rahman; Rusni Hassan; Nurun Nadiah Mohamad
Middle East J. of Management (MEJM), Vol. 4, No. 4, 2017
Abstract: The recently introduced Islamic Financial Services Act 2013 (IFSA) requires all Takaful Operators in Malaysia to be incorporated as a public company in accordance with the provisions of Companies Act 1965. In contrast, under the repealed Takaful Act 1984, operators were allowed to assume as a private company as their choice of form of establishment. This article outlines the potential effects of such requirement to Takaful Operators in the country. The study finds such a requirement has both its merits and demerits. Despite the adverse risk of additional operational costs, being a public company, the Takaful Operator has the advantage of easier and comparatively cheaper access to capital over the long run. Moreover, such requirement would further enhance the corporate standing of the Takaful Operators as crucial financial information is available in the public domain. This would eventually lead to an increase in confidence amongst the operators' investors and participants.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Middle East J. of Management (MEJM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook