A Time To Shine: How Business Interruption Micro Takaful Scheme Step Up To Covid-19 For Micro Enterprises In Malaysia

Abstract

After a series of disasters, including major floods, landslides, and hurricanes, Malaysia was affected by multiple damages and losses Moreover, with the proclamation of the Movement Control Order (MCO) by the government, the COVID-19 pandemic has led to widespread economic disruption across the country By this year, Malaysia's Gross Domestic Product (GDP) is projected to contract between 0 1 per cent and 4 6 per cent However, this projection may be negatively impacted due to the closures of short-term business, sales losses, and the downturn in revenue In Malaysia, the Micro, Small and Medium Enterprises (MSMEs) amounted to 907,765, in which 693,679 (76 5%) comprised of microenterprises (MEs) After ceasing their operations, these MEs and businesses were prone to bankruptcy, in which MEs were severely affected by the MCO Therefore, this article investigated the coverage of existing insurance schemes of business interruption losses, formulated the business protection schemes against business losses by observing the effects of COVID-19, and the requirements of takaful/insurance protection, particularly on MEs in Malaysia Hence, this article focused on business interruption during a pandemic, which involved microbusiness interruption scheme for MEs in Malaysia