A study on Takaful-Growth Nexus Pre and Post COVID-19: Evidence from Malaysia
Keywords:
Industrial Production Index, Pearson Correlation Coefficient, TakafulAbstract
This paper aims to study the relationship between Takaful and economic growth before (2009–2019) and after (2020–2024) the COVID-19 pandemic. The study employs the Pearson Correlation Coefficient to examine the relationship between Takaful’s indicators and the Industrial Production Index for the pre- and post-pandemic periods. The results reveal a significant positive relationship between the Takaful sector and economic growth in both phases. The correlation becomes stronger in the post-pandemic period due to government incentives that supported the expansion of the Takaful industry, thereby enhancing Malaysia’s economic stability and growth. The findings provide valuable insights for Takaful operators and policymakers to better understand the extent of the relationship between Takaful and economic growth, thereby making informed decisions and improvements that can benefit society and the nation. Recommendations to strengthen the future prospects of the Takaful industry are also discussed.
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