AMCHAM highlights major Malaysian investments of American insurance

KUALA LUMPUR, February 4 – The American Malaysian Chamber of Commerce (AMCHAM) today released the results of an Economic Impact Survey that highlights the major contributions that American insurance companies are making to the Malaysian economy.

AMCHAM’s American member companies in the insurance sector have total investments of RM 31 billion in Malaysia, including invested premiums and reinvested profits. 36% of these investments are in bonds issued by the Malaysian government, while 19% are in Malaysian infrastructure investments and 7% in the local stock market.

Insurance penetration plays a key role in supporting national economic development, promoting growth by enabling risk-sharing, underpinning trade and investment transactions, and increasing the financial security of citizens. AMCHAM’s survey found that American insurance companies are playing a major role in increasing insurance coverage among Malaysian citizens, paying out claims worth RM1.73 bn in Malaysia in 2018.

Furthermore, American insurance companies are shown to be a valuable source of well-paid professional jobs with a total of almost 2,500 jobs spread across the entire country, with total gross salary payments to staff totaling RM 250 million in 2018. These American insurance companies are also major contributors to public revenues, paying RM 79 million in corporate income tax in 2018 plus a further RM 58 million in tax on salaries, EPF and SOCSO contributions.

Siobhan Das, Executive Director of AMCHAM, commented: “Given the specific business model of the insurance industry, it can be easy to underestimate the major economic impact that the big insurance players can make to the national economy. Several of our insurance members are long-term investors in Malaysia having been here for more than 40 years, and their business success is closely tied to the growth trajectory of the country. Higher levels of insurance penetration over the coming years will be key to achieving the government’s ‘Shared Prosperity Vision 2030’, and we are proud to be able to release these data points to capture the various ways in which our insurance members are supporting the Malaysian economy”.

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Insurance Sector – Economic Impact Survey Results