THE GROWTH OF MALAYSIAN TAKAFUL INDUSTRY – FROM 2009 THROUGH 2019
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Abstract
This study aims at examining the landscape of Malaysian takaful industry over the past 11 yearswith a specific focus on investigating strength of relationship betweenthe performance of takaful products and the level of national income. Within the framework of sales theory, this paper employs Ordinary Least Squares (OLS) regression as an estimation tool to model the yearly secondary data from 2009 through 2019. The empirical results from the study show that the income level exerts some significant influence only on the performance of family takaful.From Pearson correlation analysis, we only observe a strong positive correlation between the performance of family takaful and income level. As such, a steady increase in income is an important prerequisite for future consumption, particularly on spending over merit goods. It is rather unexpected to find that the level of income has no bearing at all on the performance of general takaful.
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