USING ARABIC WORDS IN MALAYSIA TAKAFUL INDUSTRY AND IMPACT ON UNTAPPED MALAY MARKET

Abstract

Takaful in Malaysia has managed to penetrate the untapped market. However, the penetration rate is still low. The purpose of this research is to find out the factors that can influence the untapped market. This research would explain why the industry is moving forward by using Arabic words to replace the English words as industrial marketing tool. The Arabic words are now widely accepted by the people. It is believed that Muslim country would consist of huge Muslim population. This huge Muslim population is known as untapped market. The marketing realizes that the Muslim population would be more comfortable with Islamic Financial Tool which is known as Takaful instead of Insurance. As these Takaful and Insurance have the same objective in helping people as financial disaster solution, the untapped market will see the Takaful as a trusted financial tool. This trend has resulted many Insurance companies to set up a new subsidiary which would offer Islamic Financial tool. This subsidiary company is known as Takaful operator. Besides, the job opportunity has also expanded to untapped market due to the establishment of many Takaful operators. Indirectly, the education’s system has also got the same impact as more courses that related to the Islamic Financial Tool are introduced. It seems to replace the existing courses such as Diploma In Insurance to Diploma In Takaful. Looking at the Malaysian Economics, it will enhance the growth of taxable income where it derived from the Takaful’s business.