Between 2009 and 2016, foreign insurers have continued to expand their market share, which increased from 60% to 76%.
Malaysia will require overseas insurance firms to jettison at least 30 percent of their domestic businesses via strategic stake sales or local initial public offerings by end of June in order to comply with new foreign ownership rules.
There are no new foreign ownership rules for insurance companies. Foreign shareholders of insurers have made specific commitments in applying for entry into the Malaysian insurance market, including maintaining specified levels of domestic shareholding within agreed timelines. The approval for entry to the market was premised upon agreed commitments to divest which shareholders are expected to meet.
Relinquishing control won’t be a happy situation for many international firms.
Malaysia remains an attractive market for insurance companies. Between 2009 and 2016, foreign insurers have continued to expand their market share, which increased from 60% to 76%. There are 21 foreign-controlled direct insurers in Malaysia. Foreign shareholders that retain up to 70% shareholding in insurers continue to maintain a controlling interest.