The rapid liberalization of the Islamic financial industry in Malaysia has been encouraging the participation of foreign institutions in Malaysia, thus creating a diverse community and developing domestic and international takaful operator. At present there are eight takaful operators and two retakaful operator, with five foreign investment from the UK, Bahrain, Germany and Japan. Takaful operators conduct business both local and foreign currency.
Malaysia continues to progress and build a rapid development in the industry by encouraging financial institutions around the world to establish takaful and retakaful operation in Malaysia to conduct foreign currency business.
Domestic Islamic financial institutions may also apply for ICBUs, a dedicated division to conduct foreign currency business. ICBUs also be given various tax incentives and privileges lead to a reduction in the cost of doing business and to enter the market …show more content…
Ibn Taimiyah, a leading Muslim scholar, further reasoned the existence gharar in the contract because one party obtained profit while the other party did not. The prohibition on gharar would require all investment gains and losses must be eventually be apportioned in order to keep away from excessive uncertainty with respect to a return on the policyholder's investment.

Maysir: Islamic scholars have stated that maysir (gambling) and gharar are intertwined. Where there are elements of gharar, maysir elements are usually present. Maysir exist in the insurance contract when; Policyholders contribute a small amount of premium in the hope of getting a larger sum of money; premium policyholders lost money when the insured event has not occurred; the company will lose money if the claims are higher amounts contributed by the