Malaysia sets deadline for foreign insurers to comply with ownership limits

Bank Negara Malaysia said foreign insurers have until the end of 2023 to comply with the ownership limit. Foreign investors either reduce stakes in their local ventures or contribute to a charitable fund. Foreign insurers that do not comply with the ownership limit by the deadline will have to pay into a national health insurance programme known as B40 Health Protection Fund. Piloted in 2018, the initiative provides coverage to lower income households needing treatment for critical illnesses. Insurance companies that contribute to the B40 fund will be deemed to have complied with the ownership limit. Malaysia’s central bank said foreign shareholders accepted the divestment condition when they entered the Malaysian market. Singapore's Great Eastern Holdings is the only foreign insurer to have publicly pledged MYR2bn to the B40 fund in 2019.