General Insurance Industry Proposes Strategic Budget Priorities to Build National Resilience, Digital Capability, and Shared Protection
As Malaysia navigates an increasingly complex global landscape marked by accelerating climate threats, rapid technological shifts, and evolving economic pressures; the General Insurance Association of Malaysia (PIAM) has submitted its strategic national budget recommendations aimed at reinforcing Malaysia's economic stability, advancing sustainability, and accelerating digital maturity across the financial sector.
The industry’s proposals address four interconnected priorities: accelerating digitalisation and artificial intelligence adoption through targeted tax incentives and technology grants to support smaller market participants in scaling digital capabilities; strengthening protection accessibility and affordability through tax relief for critical coverages like business interruption alongside a review of Sales and Service Tax (SST) treatment on essential protection covers to narrow national protection gaps; driving climate resilience through private sector incentives for flood mitigation, climate-adapted infrastructure, and risk reduction projects; and building future-ready talent through industry-led capability programmes, apprenticeship schemes, and graduate traineeships in emerging technologies and specialised insurance fields.
Rather than viewing these focus areas in isolation, PIAM emphasises that a forward-looking financial ecosystem requires an integrated strategy. Modernising digital infrastructure and data capabilities directly strengthens catastrophe modelling and risk management, enabling the industry to better anticipate climate hazards and support national adaptation initiatives.
Highlighting the strategic purpose of these proposals, PIAM Chief Executive Officer Chua Kim Soon said, "As a data-intensive sector, general insurance relies on modern digital capabilities to sharpen underwriting, prevent fraud, and build long-term climate resilience. Implementing targeted fiscal support will help ensure essential protection remains accessible and affordable for Malaysian businesses and households while accelerating our collective readiness for emerging risks."