Malaysia | UNDP IRFF

Picture of malesia

Malaysia

Main Natural Hazards

Flood, Tsunami

^{1 ¹ Source: https://drmkc.jrc.ec.europa.eu/inform-index/INFORM-Risk/Country-Risk-Profile}

Number of insurance providers

14 life insurance companies, 19 general insurance companies, 15 takaful operators and 7 reinsurers

^{1 ¹ Source: https://www.bnm.gov.my/regulations/fsp-directory}

% Workforce engaged in agriculture

10% (2022)

^{1 ¹ Source: https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS}

Insurance penetration

5% (2022)

^{1 ¹ Source: https://www.atlas-mag.net/en/category/tags/pays/insurance-penetration-rate-in-asia-pacific}

Biodiversity ranking

#16 out of 239 countries and territories (2023)

^{1 ¹ Source: https://worldrainforests.com/03highest_biodiversity.htm}

Small business % contribution to workforce

48.2% of total employment (2022)

^{1 ¹ Source: https://www.thestar.com.my/business/business-news/2023/07/27/malaysia039s-msme-gdp-surges-116-in-2022-to-rm5804bil--dosm}

Overview

An upper-middle-income country, Malaysia is heavily reliant on the manufacturing and services sectors, and small business forms the bedrock of both sectors. As climate change’s impacts continue to increase, flooding is a particular concern, and vulnerable groups need protection from this and other risks. Insurance and risk finance can help build a resilient future for households and economic sectors.
UNDP’s Insurance and Risk Finance Facility is working with private and public sector partners to incentivize insurance development and increase financial resilience among small businesses in Malaysia.

Our projects

Building small business resilience through risk management
UNDP is collaborating with leading insurance company Generali to develop small business resilience in Malaysia, boosting a sector that provides 48% of total employment in the country. As part of this collaboration, an SME Loss Framework has been developed, offering guidance to help small businesses manage risk in the face of climate challenges. The cooperation is also resulting in the creation of valuable research and thought leadership on resilience among MSMEs.
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Protecting small businesses through innovative insurance delivery
UNDP’s Insurance and Risk Finance Facility has launched an Insurance Innovation Challenge (IIC) in Malaysia in cooperation with Generali, one of the world’s largest insurance companies, to incentivize the development of innovative and affordable insurance products that can build SME resilience to climate risks. Successful projects receive funding and technical support to enable them to develop sustainable products that can reach underserved populations.
Learn more

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Latest news

News

alt of insurance innovation challenge in malaysia

UNDP and Generali Announce the Winning Solution of the SME Insurance Innovation Challenge in Malaysia

News

UNDP and Generali launch Insurance Innovation Challenge Fund

UNDP and Generali launch innovation challenge to support business resilience in Malaysia

Latest publications

Report

Building MSME Resilience in Southeast Asia

This UNDP–Generali report details key risks for MSMEs in South-East Asia, with a country focus on Malaysia and Thailand, and presents a new approach for building MSMEs’ financial resilience.