The Malaysian Takaful Association (MTA) has launched the Maqasid Shariah Scorecard (MSS), a transformative initiative aimed at assessing the industry's impact and sustainability.

MSS is a measurement tool to demonstrate and validate the Value-Based Intermediation Takaful (VBIT) framework based on Maqasid al-Shariah, which was introduced in 2021. MSS seeks to drive positive change in behaviour and measure broader outcomes for the community served by the takaful industry.

MSS was launched on 15 October in conjunction with the VBIT Conference 2024 and officiated by the Assistant Governor of Bank Negara Malaysia (BNM) Mr Suhaimi Ali.

MSS to go global

In his keynote address at the Conference, Mr Suhaimi said, “Given its pivotal role in the operationalisation of VBIT, it is crucial for MSS to be well executed with clear alignment to operators’ business plans and operations.

“The successful implementation of MSS will facilitate ambitions for it to play a larger and deeper role, with the goal of elevating MSS as the benchmark reference for impact reporting, domestically and globally.

“As the next step, we urge the industry to consider what needs to be done for the MSS to be effectively implemented, commencing with strategies to ensure firm understanding of its objectives and measurement methodology by each industry player.”

Mr Suhaimi pointed out that globally, impact-based reporting has grown in importance as more stakeholders demand greater transparency in assessing performance beyond financial reporting.

Impact reporting is most commonly demonstrated in the climate and sustainability space.